Company Update - Investor Presentation
டீல்
டீல் மதிப்பு₹2500 கோடி
டீல் vs வணிகம்Order book = 0.42x TTM revenue (₹418.2 Cr order book vs ₹986 Cr TTM revenue)
சொந்த வருவாயுடன் ஒப்பிடும் அளவு0.42×
செயல்படுத்தும் காலம்1.0 ஆண்டு
அடிப்படை தரம்B
AI முன்கணிப்புகள்
வருவாய் உயர்வு (முதல் ஆண்டு / நிலையான)25.0% / 35.0%
EPS உயர்வு60.0%
அப்சைடு பேஸ் / புல் / பேர்40.0% / 80.0% / -25.0%
கால எல்லை12-24 மாதங்கள்
உண்மையான சந்தைப் பதிவு
நுழைவு — அடுத்த நாள் தொடக்கம் (12 ஆக. 2026)₹520.0
சமீபத்திய முடிவு விலை (16 செப். 2026)₹714.5
தொடங்கியதிலிருந்து வருமானம்+37.4%
α vs Smallcap 250+40.3%
α vs சொந்தத் துறை90+ நாட்கள் வைத்திருந்த பிறகு மட்டுமே காட்டப்படும் — பிற மின் உபகரணங்கள் இடைநிலை -15.3%, முதிர்ச்சியடைந்த 43 பரிந்துரைகளின் அடிப்படையில்
நேர்மறைகள்
- Q1 FY27 revenue grew 83.2% YoY to ₹286.4 Cr with PAT surging 146% YoY to ₹7.59 Cr, displaying sharp operating leverage.
- EBITDA margins expanded significantly to 8.88% in Q1 FY27 compared to FY26 full-year average of 6.0%.
- High promoter holding at 73.04% with zero pledged shares.
- Significant working capital cycle improvement from 214 days in FY22 to 51 days in FY26.
- Strategic pivot away from low-margin public sector/railway contracts toward higher-margin private EPC sector (88% of current order book).
அபாயங்கள்
- High volatility in key raw materials (copper and aluminum) can compress thin net margins (~2-3%).
- Debt burden of ₹184 Cr leading to annual finance costs (~₹12-13 Cr in Q1 FY27 alone) that eat into net earnings.
- Intense market competition from large integrated peers (Polycab, Havells) with far superior pricing power.
- Higher reliance on EPC sector expansion which remains sensitive to macroeconomic cycles.
முழு AI சுருக்கம்
Delton Cables (504240) - Equity Research Report
பகுப்பாய்வு தேதி: 2026-08-11
தற்போதைய விலை: ₹450.3
சந்தை மதிப்பு: ₹389 கோடி
Verdict: POSSIBLE Multibagger (Score: 58/100)
1. தொழில்துறைச் சூழல் & மூலதனத் தீவிரம்
- Industry: Wires & Cables / Electrical Equipment
- Capital Intensity: MEDIUM. Manufacturing capacity reaches ₹1,500 Cr base with an asset-light expansion model.
- Industry Growth CAGR: 12-14%, propelled by national infrastructure projects, renewable power transmission, 5G rollouts, and private EPC capex.
- Execution Difficulty: Cable delivery cycles are relatively quick (6–12 months). The primary challenge is working capital management and pass-through efficiency of fluctuating raw material costs (copper/aluminum).
2. Earnings Acceleration & Ramp-Aware Analysis
- Q1 FY27 Catalysts: Revenue for Q1 FY27 expanded 83.2% YoY to ₹286.4 Cr. Net profit (PAT) rose 146.4% YoY to ₹7.59 Cr (EPS of ₹8.79 for a single quarter vs ₹17.04 for the entire FY26).
- Margin Expansion: EBITDA margins reached 8.88% in Q1 FY27 vs 6.0% in FY26, driven by a product mix shift toward higher-margin private EPC cables.
- Order Book: ₹418.2 Cr as of June 30, 2026 (0.42x TTM Revenue). Unlike multi-year infrastructure construction projects, cable orders deliver within 6-12 months.
- Revenue & EPS Projections:
- TTM Revenue prior to Q1: ₹986 Cr.
- Projected FY27 Revenue: ~₹1,150–1,200 Cr (+20-22% YoY uplift).
- Projected FY27 PAT: ~₹28–32 Cr (supported by sustained OPM near 8% and lower relative working capital costs).
- Projected FY27 EPS: ₹31–36 vs FY26 EPS of ₹17.04 (up ~80-100% YoY).
3. Fundamental Quality & Balance Sheet Health
- ROCE: 15.0% (Quality Gate Passed).
- Balance Sheet: Debt stands at ₹184 Cr against Net Worth of ₹344 Cr (D/E: 0.53). High interest expense (₹12.9 Cr in Q1 FY27) remains a key drain on net margins.
- Promoter Holding: Strong at 73.04%, with no pledge reported.
- Working Capital Efficiency: Cash conversion cycle drastically improved to 51 days in FY26 from 214 days in FY22.
4. Valuation Scenarios (12-24 Months)
- Base Case (Target Price: ₹630, +40%):
- FY27 EPS settles at ₹32.0.
- Exit P/E assigned: 19.5x (reflecting improved OPM and working capital discipline).
-
Key assumption: Steady execution of ₹418 Cr order book with OPM maintained above 8%.
-
Bull Case (Target Price: ₹810, +80%):
- FY27 EPS reaches ₹38.5 on continued 30%+ revenue growth and OPM at 9.2%.
- Exit P/E assigned: 21.0x.
-
Key assumption: Market share gains in private EPC/smart metering, combined with debt reduction from strong operating cash flows.
-
Bear Case (Target Price: ₹338, -25%):
- Spike in copper prices squeezes OPM back down to 6.0%; FY27 EPS comes in at ₹18.0.
- Exit P/E assigned: 18.8x.
5. தீர்ப்பின் காரணம்
Delton Cables displays a classic earnings turning point: Q1 FY27 PAT of ₹7.59 Cr represents over 50% of its entire FY26 PAT, backed by structural margin expansion from 6.0% to 8.88%. While high interest costs and intense competition prevent a 'STRONG_CANDIDATE' rating, the ongoing operating leverage and debt reduction potential make it a credible POSSIBLE multibagger candidate over a 2-3 year horizon.
2026-08-11 நிலவரப்படி பகுப்பாய்வு (விலை ₹450.30) · AI ஆய்வு, முதலீட்டு ஆலோசனை அல்ல.
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