Corporate Feature     

Published: Feb 15, 2023
Updated: Feb 15, 2023

Ultracab (India)

Gamechanger order from Tatas

In a significant nod to its capabilities, Ultracab (India) Limited has received a mega order of Rs 22.88 crore from Tata Power. The Tata group company is India’s largest integrated power company with a significant international presence.

Besides, during the current financial year, the company has received orders from leading corporates, including Hindustan Zinc, HAL and National Fertilisers.

Ultracab is a leading manufacturer and exporter of wires and cables. Incorporated in 2007, it specialises in instrumentation cables, elevator cables, high-temperature automotive cables and UL approved cables. The company’s mission is to deliver the best quality in wires and cables to its customers.

IPO IN 2014

Ultracab has a history of rewarding its shareholders with bonus issues twice. In March 2022, it announced a bonus issue of 1:2 and a stock split from the face value of Rs 10 per share to Rs 2 per share. In September 2016, it announced a bonus issue of 1:2. The company launched its IPO on the BSE SME platform in September 2014 and subsequently migrated to the main board in January 2017.

POLE DREAMS

Nitesh Vaghasiya, Managing Director, Ultracab (India) Ltd, said, “Going forward, the company aims to accelerate its growth and expand its margins and profitability through its wide range of products and focus on new potential markets. With its business plans firmed up, Ultracab is confident of executing them seamlessly and attaining the next level of growth over the next 2-3-years with the support of its existing as well as future strategic stakeholders. Our vision is to be a leader in the wires and cables industry by developing new product innovations that have features that compare with global quality.”

The company has reported robust financials with a CAGR growth of 17% in sales and 59% in net profit over the last 5 years. The promoter and promoter group hold a 62.12% stake in the company as on September 2022.

SHARE BOOM

Ultracab’s stock price on January 25, 2023 was Rs 26.45 with a market capitalisation of Rs 252 crore. The share price of the company has reported a robust 51% CAGR growth in the last 3 years – from Rs 7.5 per share to Rs 26.4 per share. The book value is Rs 15 per share with an RoCE of 13% in FY22.

Rewarding shareholders

The company has rewarded its shareholders with two bonus issues and one stock split. In March 2022, it announced a bonus issue of 1:2 and a stock split from the face value of Rs 10 per share to Rs 2 per share. In September 2016, it bonus shares in the ratio of 1:2

Ultracab has reported a CAGR growth of 17% in sales and 59% in net profit over the last 5 years. The promoter group holds a 62.12% stake in the company as on December 2022.

The share price has reported a strong CAGR of 51% in the last three years – from Rs 7.5 per share to Rs 26.4 per share. The company’s launched its IPO on the BSE SME platform in September 2014 and subsequently migrated to the main board in January 2017.