Birla Cable Limited (BIRLACABLE) AI Stock Analysis

• Market Cap: ₹3.87B
• Dividend Yield: 1.28%
• Average Volume (3M): 5.58K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 1.38
• Revenue Growth: -2.60%
• EPS Growth: -31.97%
• Country: IN
• Employees: 313
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Communication Equipment
• EPS (TTM): 1.34
• Shares Outstanding: 30,000,000
• 10 Day Avg. Volume: 4,215
• 30 Day Avg. Volume: 5,578
• PEG Ratio: -1.25
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 5.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹133.00 ▼(-1.99% Downside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is held back most by expensive valuation (high P/E) and mixed financial performance (revenue decline and higher leverage), partly offset by strong cash flow improvement. Technicals show positive momentum but overbought signals and trading below the 200-day average add near-term risk.

Positive Factors

Cash flow strength

Material improvement in operating and free cash flow indicates durable cash-generation capacity and strong earnings-to-cash conversion. Over a 2–6 month horizon this supports organic reinvestment, working-capital management, and cushions financing needs despite cyclical raw-material swings.

Healthy gross & EBIT margins

Sustained gross and EBIT margin strength points to efficient manufacturing and cost control in core cable operations. This structural margin resilience preserves operating cash flow through commodity cost cycles, supporting long-term competitiveness and the ability to fund targeted capex or margin expansion initiatives.

Established domestic manufacturing & distribution

A domestic manufacturing footprint plus an established sales and distribution network provides stable access to residential, commercial, industrial and infrastructure demand. Diversified end-market exposure and direct channels reduce customer concentration risk and support steady revenue over the medium term.

Negative Factors

Rising leverage

An increasing debt-to-equity ratio reduces financial flexibility and raises interest-service obligations. Over several months this constrains strategic options, elevates refinancing risk if market conditions tighten, and can force management to prioritize debt service over growth or capex programs.

Revenue decline

A recent drop in revenue signals demand or share loss that can erode scale economics and strain margins if not reversed. Persisting revenue weakness over 2–6 months would pressure operating leverage, reduce cash generation upside, and necessitate either cost cuts or investment to regain growth.

Weaker net margin and lower ROE

Declining net profit margin and lower ROE indicate deteriorating after-cost profitability and less efficient capital use. This undermines long-term shareholder returns and can limit the company's ability to self-fund growth or raise equity on favorable terms during the medium-term planning horizon.

Birla Cable Limited Business Overview & Revenue Model

Company Description

Birla Cable Limited manufactures and sells cables in India. The company offers various types of optical fiber cables, copper telecommunication cables, structured copper cables, specialty cables, and allied accessories. It also exports its products. The company was formerly known as Birla Ericsson Optical Limited and changed its name to Birla Cable Limited in September 2016. The company was incorporated in 1992 and is based in Rewa, India.

How the Company Makes Money

Birla Cable Limited primarily makes money by manufacturing and selling wires and cables. Its core revenue stream is the sale of cable products (e.g., power cables and other electrical cables/wires) to a mix of customers such as electrical contractors, distributors/retail channels, industrial buyers, and infrastructure project customers. Earnings are driven by product volumes, realized selling prices (often influenced by competitive dynamics and end-market demand), and input-cost management (notably metal/raw-material costs), with profitability depending on the spread between finished-goods pricing and manufacturing/raw-material costs. Specific details on revenue breakdown by product line, named significant partnerships, or customer concentration are null.

Birla Cable Limited Financial Statement Overview

Summary

Mixed fundamentals: cash flow is a clear positive (stronger operating and free cash flow with good earnings-to-cash conversion), but income statement trends are pressured by declining revenue and weaker net margin, and the balance sheet shows rising leverage and lower ROE.

Income Statement

The income statement shows mixed results. The gross profit margin and EBIT margin are fairly strong, indicating efficiency in managing production costs and operating expenses. However, the net profit margin has shown a decline, possibly due to increased costs or decreased efficiency in other areas. Revenue declined in the most recent year, indicating potential market challenges or competitive pressures.

Balance Sheet

The balance sheet reflects moderate financial health. The debt-to-equity ratio has increased, suggesting higher leverage which can pose a risk if not managed properly. The equity ratio is decent, indicating a fair proportion of assets financed by equity. However, the return on equity has decreased, which may point to inefficiencies in generating profits from shareholders' investments.

Cash Flow

The cash flow statement is relatively strong, with significant improvement in free cash flow and operating cash flow in the latest period. This indicates effective cash management and potential for future investments. The free cash flow to net income ratio is robust, suggesting good conversion of earnings into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.67B	6.62B	6.85B	7.92B	5.35B	3.26B
Gross Profit	1.26B	1.28B	501.43M	1.64B	1.03B	741.59M
EBITDA	336.25M	326.87M	554.45M	675.14M	461.54M	270.04M
Net Income	50.02M	48.91M	221.42M	329.40M	217.37M	82.02M
Balance Sheet
Total Assets	4.31B	4.16B	4.58B	4.61B	3.46B	3.17B
Cash, Cash Equivalents and Short-Term Investments	105.74M	9.57M	4.26M	10.30M	5.26M	1.41M
Total Debt	1.12B	1.11B	1.65B	1.29B	824.75M	709.14M
Total Liabilities	1.62B	1.63B	2.07B	2.31B	1.59B	1.48B
Stockholders Equity	2.70B	2.53B	2.51B	2.29B	1.87B	1.68B
Cash Flow
Free Cash Flow	-63.04M	847.13M	-229.86M	-354.92M	-65.56M	-54.99M
Operating Cash Flow	-51.03M	1.12B	158.25M	-78.40M	25.09M	-11.33M
Investing Cash Flow	111.90M	-380.47M	-316.72M	-221.13M	-53.70M	-30.15M
Financing Cash Flow	-64.63M	-736.85M	152.44M	304.57M	32.46M	-95.49M

Birla Cable Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BIRLACABLE, the sentiment is Negative. The current price of 135.7 is below the 20-day moving average (MA) of 136.17, below the 50-day MA of 136.06, and below the 200-day MA of 155.03, indicating a bearish trend. The MACD of -2.51 indicates Positive momentum. The RSI at 42.58 is Neutral, neither overbought nor oversold. The STOCH value of 33.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BIRLACABLE.

Birla Cable Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PARACABLES	70 Outperform	₹10.58B	40.47	―	―	38.39%	-27.69%
SMARTLINK	64 Neutral	₹1.22B	14.70	―	―	4.87%	35.38%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BIRLACABLE	57 Neutral	₹3.87B	25.51	―	1.28%	-2.60%	-31.97%
AKSHOPTFBR	43 Neutral	₹751.66M	-4.51	―	―	-29.38%	73.60%
TNTELE	43 Neutral	₹430.77M	-3.30	―	―	―	―