New Risk • May 28
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.7% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.5x net interest cover). Earnings have declined by 12% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (10% average weekly change). Market cap is less than US$100m (₹5.54b market cap, or US$57.6m). Reported Earnings • May 23
Full year 2026 earnings released: EPS: ₹5.63 (vs ₹1.63 in FY 2025) Full year 2026 results: EPS: ₹5.63 (up from ₹1.63 in FY 2025). Revenue: ₹7.75b (up 17% from FY 2025). Net income: ₹169.0m (up 246% from FY 2025). Profit margin: 2.2% (up from 0.7% in FY 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 61 percentage points per year, which is a significant difference in performance. Announcement • May 11
Birla Cable Limited to Report Q4, 2026 Results on May 22, 2026 Birla Cable Limited announced that they will report Q4, 2026 results on May 22, 2026 Buy Or Sell Opportunity • May 11
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 19% to ₹181. The fair value is estimated to be ₹146, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 5.3% over the last 3 years. Earnings per share has declined by 69%. Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to ₹146, the stock trades at a trailing P/E ratio of 57.9x. Average trailing P/E is 52x in the Communications industry in India. Total returns to shareholders of 14% over the past three years. New Risk • Mar 23
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 7.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.6x net interest cover). Earnings have declined by 7.7% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.9% average weekly change). Market cap is less than US$100m (₹3.46b market cap, or US$37.0m). Buy Or Sell Opportunity • Mar 13
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.9% to ₹130. The fair value is estimated to be ₹165, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 5.3% over the last 3 years. Earnings per share has declined by 69%. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₹155, the stock trades at a trailing P/E ratio of 61.2x. Average trailing P/E is 33x in the Communications industry in India. Total returns to shareholders of 14% over the past three years. New Risk • Jan 31
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.6x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.6x net interest cover). Earnings have declined by 7.7% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₹4.07b market cap, or US$44.3m). New Risk • Jan 30
New major risk - Revenue and earnings growth Earnings have declined by 7.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 7.7% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₹4.08b market cap, or US$44.4m). Reported Earnings • Jan 30
Third quarter 2026 earnings released: EPS: ₹1.34 (vs ₹0.48 in 3Q 2025) Third quarter 2026 results: EPS: ₹1.34 (up from ₹0.48 in 3Q 2025). Revenue: ₹2.05b (up 30% from 3Q 2025). Net income: ₹40.2m (up 179% from 3Q 2025). Profit margin: 2.0% (up from 0.9% in 3Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 68 percentage points per year, which is a significant difference in performance. Announcement • Jan 15
Birla Cable Limited to Report Q3, 2026 Results on Jan 29, 2026 Birla Cable Limited announced that they will report Q3, 2026 results on Jan 29, 2026 Reported Earnings • Nov 01
Second quarter 2026 earnings released: EPS: ₹0.24 (vs ₹0.61 in 2Q 2025) Second quarter 2026 results: EPS: ₹0.24 (down from ₹0.61 in 2Q 2025). Revenue: ₹1.76b (down 2.9% from 2Q 2025). Net income: ₹7.13m (down 61% from 2Q 2025). Profit margin: 0.4% (down from 1.0% in 2Q 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • Oct 17
Birla Cable Limited to Report Q2, 2026 Results on Oct 30, 2025 Birla Cable Limited announced that they will report Q2, 2026 results on Oct 30, 2025 Announcement • Aug 19
Birla Cable Limited, Annual General Meeting, Sep 12, 2025 Birla Cable Limited, Annual General Meeting, Sep 12, 2025, at 10:00 Indian Standard Time. Location: udyog vihar, p.o. chorhata, rewa-486006 (m.p.), rewa India Reported Earnings • Aug 08
First quarter 2026 earnings released: EPS: ₹0.45 (vs ₹0.05 in 1Q 2025) First quarter 2026 results: EPS: ₹0.45 (up from ₹0.05 in 1Q 2025). Revenue: ₹1.77b (up 6.7% from 1Q 2025). Net income: ₹13.6m (up ₹12.2m from 1Q 2025). Profit margin: 0.8% (up from 0.1% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • Jul 25
Birla Cable Limited to Report Q1, 2026 Results on Aug 07, 2025 Birla Cable Limited announced that they will report Q1, 2026 results on Aug 07, 2025 New Risk • May 23
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Indian stocks, typically moving 9.8% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (9.8% average weekly change). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (0.7% net profit margin). Market cap is less than US$100m (₹5.75b market cap, or US$67.4m). Reported Earnings • May 22
Full year 2025 earnings released: EPS: ₹1.63 (vs ₹7.38 in FY 2024) Full year 2025 results: EPS: ₹1.63 (down from ₹7.38 in FY 2024). Revenue: ₹6.65b (down 3.0% from FY 2024). Net income: ₹48.9m (down 78% from FY 2024). Profit margin: 0.7% (down from 3.2% in FY 2024). Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • May 13
Birla Cable Limited to Report Q4, 2025 Results on May 21, 2025 Birla Cable Limited announced that they will report Q4, 2025 results on May 21, 2025 New Risk • Apr 01
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 9.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.5x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (9.4% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.7% net profit margin). Market cap is less than US$100m (₹4.75b market cap, or US$55.4m). Announcement • Mar 28
Vindhya Telelinks Limited (NSEI:VINDHYATEL) completed the acquisition of an additional 11% stake in Birla Visabeira Private Limited from Birla Cable Limited for INR 3.1 million. Vindhya Telelinks Limited (NSEI:VINDHYATEL) agreed to acquire an additional 11% stake in Birla Visabeira Private Limited from Birla Cable Limited (NSEI:BIRLACABLE) for INR3.1 million on October 25, 2024. A cash consideration of INR 3.07 million will be paid by Vindhya Telelinks Limited. As part of consideration, INR 3.07 million is paid towards common equity of Birla Visabeira Private Limited. Upon completion, Vindhya Telelinks Limited will own 51% stake in Birla Visabeira Private Limited.
For the period ending March 31, 2024, Birla Visabeira Private Limited reported total revenue of INR 184.53 million.
The transaction is subject to approval of offer by acquirer board. The deal has been approved by the board.
Vindhya Telelinks Limited (NSEI:VINDHYATEL) completed the acquisition of an additional 11% stake in Birla Visabeira Private Limited from Birla Cable Limited (NSEI:BIRLACABLE) on March 27, 2025. Announcement • Mar 21
Birla Cable Limited Announces Board Changes Birla Cable Limited at its meeting held on March 21, 2025, announced the appointment of Ms. Suman holding ICSI Membership No. A-52842 as the Company Secretary and Compliance Officer, a Whole-Time Key Managerial Personnel (KMP) of the Company with effect from 21st March, 2025. Consequently, Mr. Somesh Laddha ceased to be the Compliance Officer of the Company in interim capacity with immediate effect. Ms. Suman is a qualified law
graduate and an Associate Member of the Institute of Company Secretaries of India holding Membership No. A- 52842. She is having more than 7 years of post- qualification experience in core areas of Corporate Secretarial
functions and Compliance management. Buy Or Sell Opportunity • Mar 21
Now 21% overvalued Over the last 90 days, the stock has fallen 32% to ₹146. The fair value is estimated to be ₹120, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.8% over the last 3 years. Earnings per share has declined by 18%. Buy Or Sell Opportunity • Feb 11
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 16% to ₹173. The fair value is estimated to be ₹222, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.8% over the last 3 years. Earnings per share has declined by 18%. Announcement • Feb 10
Birla Cable Limited Appoints Somesh Laddha as Interim Compliance Officer Birla Cable Limited announced that the Board of Directors of the Company at its meeting held on 9th February, 2025, approved the Appointment of Shri Somesh Laddha, Chief Financial Officer (CFO), a Whole-Time Key Managerial Personnel holding ICS! Membership No. A26449 as the Compliance Officer of the Company in interim capacity, effective 9th February, 2025. Shri Somesh Laddha, Chief Financial Officer (CFO), a Whole-Time Key Managerial
Personnel of the Company is a qualified Chartered Accountant and Company Secretary with over eighteen years of post-qualification experience in managing finance & accounts, statutory audits, secretarial and corporate affairs, and liaisoning with government departments and statutory authorities etc. Reported Earnings • Feb 09
Third quarter 2025 earnings released: EPS: ₹0.48 (vs ₹1.27 in 3Q 2024) Third quarter 2025 results: EPS: ₹0.48 (down from ₹1.27 in 3Q 2024). Revenue: ₹1.59b (down 2.1% from 3Q 2024). Net income: ₹14.4m (down 62% from 3Q 2024). Profit margin: 0.9% (down from 2.3% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • Jan 30
Birla Cable Limited to Report Q3, 2025 Results on Feb 09, 2025 Birla Cable Limited announced that they will report Q3, 2025 results at 12:08 PM, Indian Standard Time on Feb 09, 2025 Announcement • Jan 16
Birla Cable Limited Announces Resignation of Nitin Arora as Company Secretary, Effective January 18, 2025 Birla Cable Limited informed that Mr. Nitin Arora has tendered his resignation from the post of Company Secretary and Compliance Officer (Key Managerial Personnel) of the Company due to personal reasons. The management has duly accepted his resignation on January 15, 2025 and he will be relieved from the services of the Company at the close of business hours on January 18, 2025. Copy of letter of resignation along with acceptance thereof are attached herewith. Announcement • Nov 08
Birla Cable Limited Announces Cessation of Archana Capoor as Non-Executive Independent Director, Effective from November 9, 2024 Birla Cable Limited informed that Mrs. Archana Capoor (DIN: 01204170), Non-Executive Independent Director of the Company will be completing her tenure viz. second term of five (5) consecutive years on 9th November, 2024. Accordingly, she will cease to be a Director of the Company with effect from the close of business hours on 9th November, 2024. The Board of Directors and the Management of the Company placed on record its gratitude, sincere and deep appreciation for the valuable guidance and contributions made by Mrs. Archana Capoor during her long association as a Non-Executive Independent Director of the Company. Reported Earnings • Oct 25
Second quarter 2025 earnings released: EPS: ₹0.61 (vs ₹1.68 in 2Q 2024) Second quarter 2025 results: EPS: ₹0.61 (down from ₹1.68 in 2Q 2024). Revenue: ₹1.83b (up 4.6% from 2Q 2024). Net income: ₹18.2m (down 64% from 2Q 2024). Profit margin: 1.0% (down from 2.9% in 2Q 2024). Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 37% per year, which means it is well ahead of earnings. Announcement • Oct 18
Birla Cable Limited Appoints Mr. Ravindra Pratap Singh as Non- Executive Non-Independent Director Birla Cable Limited informed that Mr. Ravindra Pratap Singh (DIN: 00240910) who was appointed as an Additional Director with effect from August 9, 2024, has been appointed as a Non- Executive Non-Independent Director of the Company, liable to retire by rotation, by the Members of the Company by way of an Ordinary Resolution passed on October 17, 2024, through Postal Ballot including Remote e-Voting. Mr. Ravindra Pratap Singh, who was appointed as an Additional Director with effect from August 9, 2024, has been appointed as a Non-Executive Non-Independent Director of the Company, liable to retire by rotation, by the Members of the Company by way of an Ordinary Resolution passed on October 17, 2024, through Postal Ballot including Remote e-Voting. Mr. Ravindra Pratap Singh (Age: 65 Years), a Fellow Chartered Accountant is the Managing Partner of Lodha & Co, LLP, Kolkata. He has over 35 years of rich experience in rendering assurance services, financial planning assignments and providing income tax advice to diverse client base across a wide range of industries, which include some of the largest corporates in India, Management Assurance services, Corporate & Management Advisory services including corporate restructuring, mergers & demergers and valuations, Tax consultancy services, Audit & Assurance services. Announcement • Oct 15
Birla Cable Limited to Report Q2, 2025 Results on Oct 24, 2024 Birla Cable Limited announced that they will report Q2, 2025 results on Oct 24, 2024 New Risk • Aug 10
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 1.6% Last year net profit margin: 5.1% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.2x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.6% net profit margin). Market cap is less than US$100m (₹8.18b market cap, or US$97.5m). Reported Earnings • Aug 10
First quarter 2025 earnings released: EPS: ₹0.05 (vs ₹3.90 in 1Q 2024) First quarter 2025 results: EPS: ₹0.05 (down from ₹3.90 in 1Q 2024). Revenue: ₹1.66b (down 4.4% from 1Q 2024). Net income: ₹1.44m (down 99% from 1Q 2024). Profit margin: 0.1% (down from 6.7% in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 43% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Aug 10
Birla Cable Limited Appoints Ravindra Pratap Singh as Non-Executive Non-Independent Director Birla Cable Limited announced that at its board meeting held on 9 August 2024, appointed Mr. Ravindra Pratap Singh as an additional director designated as a non-executive non-independent director on the board of the company, liable to retire by rotation, with effect from 9 August 2024. Mr. Ravindra Pratap Singh (Age: 65 Years), a Fellow Chartered Accountant is the Managing Partner of Lodha & Co, LLP, Kolkata. He has over 35 years of rich experience in rendering assurance services, financial planning assignments and providing income tax advice to diverse client base across a wide range of industries, which include some of the largest corporates in India, Management Assurance services, Corporate & Management Advisory services including corporate restructuring, mergers & demergers and valuations, Tax consultancy services, Audit & Assurance services. Mr. Ravindra Pratap Singh is not related to any director of the company. Announcement • Jul 30
Birla Cable Limited to Report Q1, 2025 Results on Aug 09, 2024 Birla Cable Limited announced that they will report Q1, 2025 results on Aug 09, 2024 Upcoming Dividend • Jul 19
Upcoming dividend of ₹1.75 per share Eligible shareholders must have bought the stock before 26 July 2024. Payment date: 31 August 2024. Payout ratio is a comfortable 24% but the company is not cash flow positive. Trailing yield: 0.6%. Lower than top quartile of Indian dividend payers (1.1%). Higher than average of industry peers (0.3%). Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₹290, the stock trades at a trailing P/E ratio of 39.3x. Average trailing P/E is 44x in the Communications industry in India. Total returns to shareholders of 170% over the past three years. New Risk • Jul 10
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 44% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.5x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Market cap is less than US$100m (₹7.39b market cap, or US$88.5m). Reported Earnings • Jul 10
Full year 2024 earnings released: EPS: ₹7.38 (vs ₹10.98 in FY 2023) Full year 2024 results: EPS: ₹7.38 (down from ₹10.98 in FY 2023). Revenue: ₹6.85b (down 14% from FY 2023). Net income: ₹221.4m (down 33% from FY 2023). Profit margin: 3.2% (down from 4.2% in FY 2023). Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Announcement • Jul 09
Birla Cable Limited, Annual General Meeting, Aug 02, 2024 Birla Cable Limited, Annual General Meeting, Aug 02, 2024, at 11:30 Indian Standard Time. Location: udyog vihar, p.o. chorhata, rewa-486006 (m.p.), rewa India Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹255, the stock trades at a trailing P/E ratio of 34.6x. Average trailing P/E is 36x in the Communications industry in India. Total returns to shareholders of 191% over the past three years. Announcement • May 12
Birla Cable Limited Recommends Dividend for the Financial Year 2023-24 Birla Cable Limited Recommended Dividend of INR 1.75 per share (i.e. 17.50 %) on 3,00,00,000 Equity Shares of face value of INR 10 each of the Company for the financial year 2023-24, subject To Approve the same by the Shareholders in the ensuing Thirty Second Annual General Meeting of the Company. Upon approval of shareholders, the dividend declared will be paid within thirty (30) days of declaration, subject to deduction of applicable Tax at Source as per the provisions of Income Tax Act, 1961 and rules made thereunder. Reported Earnings • May 12
Full year 2024 earnings released: EPS: ₹7.38 (vs ₹10.98 in FY 2023) Full year 2024 results: EPS: ₹7.38 (down from ₹10.98 in FY 2023). Revenue: ₹7.00b (down 12% from FY 2023). Net income: ₹221.4m (down 33% from FY 2023). Profit margin: 3.2% (down from 4.2% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has increased by 58% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 05
Birla Cable Limited to Report Q4, 2024 Results on May 10, 2024 Birla Cable Limited announced that they will report Q4, 2024 results on May 10, 2024 New Risk • Apr 01
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (10% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.5% average weekly change). Market cap is less than US$100m (₹7.47b market cap, or US$89.6m). Announcement • Mar 22
Birla Cable Limited Approves Board Appointments Birla Cable Limited informed that the Members of the Company by way of Special Resolutions passed through Postal Ballot including Remote e-Voting on March 21, 2024 have approved the appointment of Shri Pandanda Kariappa Madappa (DIN: 00058822) and Smt. Kiran Aggarwal (DIN: 06991807) as the Non-Executive Independent Directors of the Company, not liable to retire by rotation, for a first term of five (5) consecutive years with effect from April 1, 2024 to March 31, 2029. Shri Pandanda Kariappa Madappa holds a Bachelor's Degree in Commerce from St. Xaviers College, Kolkata and a Master's degree from William E. Simon Graduate School of Business, University of Rochester, USA. He is a qualified Chartered Accountant and has served in diverse fields at senior positions in various corporates in India. He is presently serving as the Managing Director of Macmet Engineering Limited, India's most successful Pipe Conveyor and Cross-Country Conveyor system supplier. He is a promoter of various Companies including ETA Aerospace which is a precision component manufacturer for the Aerospace and Defence industries, Macmet Technologies Limited which was India's most successful Defence Simulator company, having supplied simulators to Indian Air Force, Army and Navy and Macmet Interactive Technologies Pvt. Ltd. which was the first Indian company to develop Set Top Boxes and Addressable Devices. Smt. Kiran Aggarwal joined the Indian Administrative Service in 1964 and retired in 2002. During her tenure, she held significant posts as Principal Adviser, Planning Commission, Secretary to Govt. of India in the Ministries of Supply, Housing, Urban Development and Women and Child Development. As Additional Secretary in the Government of India, she worked in the Department of Administrative Reforms, Public Grievances and Training. In the State of Haryana, she held key posts in the Departments of Education, Tourism, Cultural. Affairs etc. Post retirement, she has served on some committees set up by the Government of India. These inter-alia were Training programmes for IAS probationers, Working of the AICTE, Committee to look into why government doctors were opting for private sector jobs, Trustee on the Victoria Memorial Hall Trust etc. Presently she is heading a Committee for Monitoring the Provision of Shelter for the Urban Homeless in Chandigarh. She is also on the Governing Body of the Janki Devi Memorial College, which is affiliated to the Delhi University. She is also heading an NGO working in Haryana and Delhi. Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₹220, the stock trades at a trailing P/E ratio of 19.8x. Average trailing P/E is 41x in the Communications industry in India. Total returns to shareholders of 242% over the past three years. Reported Earnings • Feb 03
Third quarter 2024 earnings released: EPS: ₹1.27 (vs ₹2.73 in 3Q 2023) Third quarter 2024 results: EPS: ₹1.27 (down from ₹2.73 in 3Q 2023). Revenue: ₹1.63b (down 19% from 3Q 2023). Net income: ₹38.0m (down 54% from 3Q 2023). Profit margin: 2.3% (down from 4.1% in 3Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has increased by 67% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 20
Birla Cable Limited to Report Q3, 2024 Results on Feb 02, 2024 Birla Cable Limited announced that they will report Q3, 2024 results on Feb 02, 2024 New Risk • Nov 03
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₹8.33b (US$100.0m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (13% average weekly change). Earnings have declined by 5.0% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₹8.33b market cap, or US$100.0m). Announcement • Oct 19
Birla Cable Limited to Report Q2, 2024 Results on Nov 01, 2023 Birla Cable Limited announced that they will report Q2, 2024 results on Nov 01, 2023 Upcoming Dividend • Aug 28
Upcoming dividend of ₹2.50 per share at 0.8% yield Eligible shareholders must have bought the stock before 04 September 2023. Payment date: 11 October 2023. Payout ratio is a comfortable 23% but the company is not cash flow positive. Trailing yield: 0.8%. Lower than top quartile of Indian dividend payers (1.4%). Higher than average of industry peers (0.5%). Valuation Update With 7 Day Price Move • Aug 24
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to ₹297, the stock trades at a trailing P/E ratio of 21.4x. Average trailing P/E is 25x in the Communications industry in India. Total returns to shareholders of 394% over the past three years. Announcement • Aug 18
Birla Cable Limited, Annual General Meeting, Sep 11, 2023 Birla Cable Limited, Annual General Meeting, Sep 11, 2023, at 16:30 Indian Standard Time. Location: Registered Office of he Company at Udyog Vihar P.O. Chorhata, Rewa-486 006 (M.P.) Rewa India Agenda: To receive, consider and adopt the audited Financial Statements of the Company for the financial year ended March 31, 2023 and the Reports of the Board of Directors and Auditors thereon; to consider the audited Consolidated Financial Statements of the Company for the financial year ended March 31, 2023 and the Reports of Auditors thereon; to declare dividend on equity shares for the financial year ended March 31, 2023; to appoint a Director in place of Shri H. V. Lodha, who retires by rotation at this Annual General Meeting and being eligible, offers himself for re-appointment; and to consider other matters. Reported Earnings • Aug 11
First quarter 2024 earnings released: EPS: ₹3.90 (vs ₹0.96 in 1Q 2023) First quarter 2024 results: EPS: ₹3.90 (up from ₹0.96 in 1Q 2023). Revenue: ₹1.84b (up 24% from 1Q 2023). Net income: ₹117.1m (up 307% from 1Q 2023). Profit margin: 6.4% (up from 1.9% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has only increased by 64% per year, which means it is significantly lagging earnings growth. New Risk • Aug 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 7.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 9.3% per year over the past 5 years. High level of non-cash earnings (22% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.6% average weekly change). Market cap is less than US$100m (₹6.76b market cap, or US$81.7m). Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹225, the stock trades at a trailing P/E ratio of 20.5x. Average trailing P/E is 31x in the Communications industry in India. Total returns to shareholders of 310% over the past three years. Announcement • Aug 01
Birla Cable Limited to Report Q1, 2024 Results on Aug 10, 2023 Birla Cable Limited announced that they will report Q1, 2024 results on Aug 10, 2023 Valuation Update With 7 Day Price Move • May 22
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹179, the stock trades at a trailing P/E ratio of 16.3x. Average trailing P/E is 30x in the Communications industry in India. Total returns to shareholders of 398% over the past three years. Announcement • May 04
Birla Cable Limited Recommends Dividend for the Financial Year 2022-23 Birla Cable Limited at its board meeting held on May 02, 2022, recommended Dividend of INR 2.50 per share on 3,00,00,000 Equity Shares of face value of INR 10 each of the Company for the financial year 2022-23, subject To Approve the same by the Shareholders in the ensuing Thirty First Annual General Meeting of the Company. Upon approval of shareholders, the dividend declared will be paid within 30 days of declaration, subject to deduction of applicable Tax at Source as per the provisions of Income Tax Act, 1961 and rules made there under. Reported Earnings • May 03
Full year 2023 earnings released: EPS: ₹10.90 (vs ₹7.25 in FY 2022) Full year 2023 results: EPS: ₹10.90 (up from ₹7.25 in FY 2022). Revenue: ₹7.97b (up 49% from FY 2022). Net income: ₹329.4m (up 52% from FY 2022). Profit margin: 4.1% (in line with FY 2022). Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 54% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: ₹2.73 (vs ₹1.50 in 3Q 2022) Third quarter 2023 results: EPS: ₹2.73 (up from ₹1.50 in 3Q 2022). Revenue: ₹2.00b (up 40% from 3Q 2022). Net income: ₹82.0m (up 83% from 3Q 2022). Profit margin: 4.1% (up from 3.1% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Announcement • Feb 02
Birla Cable Limited Announces Resignation of Shalendra Kumar Thakur as Chief Financial Officer Birla Cable Limited announced that Shri Shalendra Kumar Thakur, Chief Financial Officer (CFO) of the Company has resigned from the services of the Company with effect from the close of the business hours on 31 January, 2023 due to personal reasons. Shri Shalendra Kumar Thakur will also cease to be a Key Managerial Personnel (KMP) under the provisions of Section 203 and other applicable provisions, if any, of the Companies Act, 2013 and Regulation 30(5) of the Listing Regulations for determining the materiality of any event or transaction for making the required disclosures to the Stock Exchange with effect from close of business hours of 31 January, 2023. Announcement • Feb 01
Birla Cable Limited to Report Q3, 2023 Results on Feb 09, 2023 Birla Cable Limited announced that they will report Q3, 2023 results on Feb 09, 2023 Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₹122, the stock trades at a trailing P/E ratio of 13.5x. Average trailing P/E is 27x in the Communications industry in India. Total returns to shareholders of 118% over the past three years. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. No experienced directors. 6 highly experienced directors. Independent Non-Executive Director Archana Capoor was the last director to join the board, commencing their role in 2014. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 01
Second quarter 2023 earnings released: EPS: ₹3.04 (vs ₹1.22 in 2Q 2022) Second quarter 2023 results: EPS: ₹3.04 (up from ₹1.22 in 2Q 2022). Revenue: ₹2.01b (up 46% from 2Q 2022). Net income: ₹91.3m (up 150% from 2Q 2022). Profit margin: 4.5% (up from 2.7% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Board Change • Sep 25
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 5 highly experienced directors. Independent Non-Executive Director Archana Capoor was the last director to join the board, commencing their role in 2014. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Sep 08
Upcoming dividend of ₹1.50 per share Eligible shareholders must have bought the stock before 15 September 2022. Payment date: 23 October 2022. Payout ratio is a comfortable 21% but the company is not cash flow positive. Trailing yield: 1.0%. Lower than top quartile of Indian dividend payers (1.6%). Higher than average of industry peers (0.4%). Valuation Update With 7 Day Price Move • Sep 05
Investor sentiment improved over the past week After last week's 20% share price gain to ₹144, the stock trades at a trailing P/E ratio of 20x. Average trailing P/E is 21x in the Communications industry in India. Total returns to shareholders of 199% over the past three years. Reported Earnings • Aug 13
First quarter 2023 earnings released: EPS: ₹0.96 (vs ₹1.00 in 1Q 2022) First quarter 2023 results: EPS: ₹0.96 (down from ₹1.00 in 1Q 2022). Revenue: ₹1.48b (up 60% from 1Q 2022). Net income: ₹28.8m (down 4.2% from 1Q 2022). Profit margin: 1.9% (down from 3.2% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • May 27
Full year 2022 earnings released: EPS: ₹7.25 (vs ₹2.73 in FY 2021) Full year 2022 results: EPS: ₹7.25 (up from ₹2.73 in FY 2021). Revenue: ₹5.35b (up 63% from FY 2021). Net income: ₹217.4m (up 165% from FY 2021). Profit margin: 4.1% (up from 2.5% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Reported Earnings • Feb 13
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: ₹1.50 (up from ₹0.097 in 3Q 2021). Revenue: ₹1.43b (up 68% from 3Q 2021). Net income: ₹44.9m (up ₹42.0m from 3Q 2021). Profit margin: 3.1% (up from 0.3% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 64 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Dec 27
Investor sentiment improved over the past week After last week's 20% share price gain to ₹98.35, the stock trades at a trailing P/E ratio of 22.2x. Average trailing P/E is 26x in the Communications industry in India. Total loss to shareholders of 48% over the past three years.