📌Order in hand: Rs. 178Cr State Govt Orders🔥
📌📌 ➡️ ➡️
▪️Marco Cables and Conductors Ltd. (MCCL)✅ is engaged in the business of manufacturing and selling wires, cable wires, and conductors in India, with an operating history of over 34 years 💫 in the power cable industry in India.
📌The company's product list includes:
➢LT Aerial Bunched Cables: It is used for overhead Power Distribution. It provides high safety and reliability, lower power losses, and ultimate system economy by reducing installation, maintenance, and operating costs, best for installation in difficult terrains such as hilly areas forest areas, coastal areas, etc.
➢LT PVC Cables.
➢AAAC Conductor: Made from aluminum-magnesium-silicon alloy of high electrical conductivity containing Magnesium (0.6-0.9%) and silicon (0.5-0.9%) to give it better mechanical properties after treatment.
➢LT XLPE Cables: These are manufactured with CU/AI Conductor with XLPE Insulation, Laid up, Inner Taped/Extruded. The armoring is of galvanized mild steel wires/strips. The final outer sheath with high-grade PVC. All are as per relevant IS specifications.
➢ACSR Conductors: ACSR conductor consists of a solid or stranded steel core surrounded by strands of aluminum (E.C. GRADE). ACSR Conductor is available in a wide range of steel, containing carbon from 0.5% to 0.85 %. ACSR Conductor has high Tensile Strength making it useful for for river crossings, overhead ground wires, installations involving extra long spans, etc.
▪️Marco Cables & Conductors' manufacturing unit is located at Nasik, Maharashtra, with a combined installed production capacity of 18,000 Kms p.a.✅ as of August 07, 2023.
▪️Over the years the company has developed expertise and upgraded its technology by adding several automatic machineries 🔥 and equipment to the plant, which has helped boost in production capacity and the quality of products.
▪️The majority of its products are supplied to electricity boards of different states like Maharashtra, Gujarat, Tamil Nadu, Telangana, Haryana, Chhattisgarh, Madhya Pradesh, etc., and turnkey contractors of India. Its products cover the entire range of voltage and transmission lines suitable for up to 1.1 KV.
The company sells products through a diversified sales and distribution mix, majorly by:-
1) securing government tenders for supply to government projects. ✅
2) supplying to EPC contractors for turnkey projects.✅
3) direct sales to a few private companies.✅
📌📌
▪️IPO price: Rs.36
▪️IPO size:18.73 CR
▪️CMP:Rs.42.6
▪️Market cap:Rs.80 CR
▪️P/E: 28 (industry avg: 36✅)
▪️EPS: 1.5 (post IPO)
▪️ROE: 22.41%
▪️ROCE: 16.93%
▪️RoNW: 18%
▪️Debt/Equity: 2.41
▪️Assets: Rs.69.93Cr
▪️Total Borrowing: Rs.37.57Cr (Reserves and Surplus:Rs.12.38Cr, Cash:Rs.3.5 Cr)
▪️Share Holding Pre Issue: 100%
▪️Share Holding Post Issue: 72.18%
📌FINANCIALS:
▪️FY23 revenue is 56.93 CR as compared to 56.65 CR(FY22), 0.5 %✅ growth yoy.
▪️FY23 PAT is 2.8 CR as compared to 0.335 CR(FY22), 736%✅ growth yoy.
▪️33% growth in revenue in last 2 years.
▪️2185%🔥 growth in PAT in last 2 years.
(Rs. 178Cr State Govt Orders✅)
📌IPO funds:
From the net proceeds of the fresh equity shares issue, it will utilize Rs. 1.86 cr. for the purchase of a solar power system and stranding machine, Rs. 5.00 cr. for working capital and Rs. 1.70 cr. for general corporate purposes.
📌PEERS:
As per the offer document, the company has shown V-Marc and Relicab Cable as their listed peers. They are trading at a P/E of 25.31 and 62.95 (as of September 18, 2023). However, they are not comparable on an apple-to-apple basis.
▪️Industry P/E ratio:-
➢P/E Ratio:
Highest: 62.95
Lowest: 21.92
Average: 35.62
📌CLIENTS:
✔️MSEDCL (MUMBAI)
✔️LARSEN & TOURBO (CHENNAI)
✔️APCPDCL (VIJAYWADA)
✔️BAJAJ ELECTRICALS (MUMBAI)
✔️ASHOKA BUILDCON LIMITED (NASIK)
✔️MEGHA ENGINEERING & INFRASTRUCTURES LTD (HYDERABAD)
✔️MPPKVVCL (INDORE)
✔️North Bihar Power Distribution Co. Ltd
and many more...
📌SECTOR GROWTH:
▪️ The rapid urbanization and industrial development have contributed to the exponential growth of the electrical cable industry in the country. According to a study – the global wire and cable market is growing at a CAGR of 6.45%. It predicts that the global market size of this industry is expected to reach USD 332.65 bn by 2026.✅
▪️The Indian wire and cable market is growing at an even faster pace. With a whopping CAGR 15%✅ growth rate, the rising Indian market reflects the rapid developments in the power and infrastructure sector. And it’s not going to slow down any time soon. With the advent of industrial revolution 4.0, global investors are eying the potential Indian market specific to the high-voltage (HV) and extra-high-voltage (EHV) cables product line.
▪️ Moreover, the fourth industrial revolution will further expand the innovative use of wires and cables inside IoT devices and for 5G ✅spread out in the telecom sector.
📌STRENGTH:
➢Qualifying in bid qualification requirements (BQR) of Government tenders. ✅
➢Assured Quality and High Standard Service.
➢Strong Customer Base.
➢Customized Product Development.
➢Strong Financial Management and Strong Marketing Practices.
📌FUTURE PLAN:
▪️Broaden their marketing base and increasing our geographical reach. ✅
▪️Technology enhancements. ✅
▪️Expand relationships with their existing customers.
▪️Focus on manufacturing consistent quality.
▪️Optimal Utilization of Resources.
visit website for more info:https://marcocables.com/index
📌Disclosure: Not a buy recommendation. only for study and education purpose. Please consult your financial advisor before investing. Please stop investing blindly just by seeing the name of any stock.
Zerodha (Trading Account)
RHP
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