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Dr Prashant Mishra

@drprashantmish6

15 Tweets 51 reads Jan 02, 2023

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Dynamic Cables Ltd.
( Its not a buying recommendation ,its only information)
Business-
1 -power infra cables that includes LT, HT, EHVC, Power control & instrumentation cables
2 -flexible & industrial cables, solar cables and railway signaling cables.

Supply to Government Discom, Private Distribution companies, Private EPC contractors, industrial and Export clients.
Manufacturing unit-
3 manufacturing plants situated at Jaipur and Reengus
Current Revenue – FY 22 – 564 cr , Net Profit 32 cr

Fy 22- ROCE and ROE both more then 20
.
Current capacity of the plants can generate Rs 800- 1000 Crs of revenue, with marginal capex
Revenue Mix FY22
Product Category-Wise
HT Cables - 51%
LT Cables - 33%
Railway Signaling Cables - 1%
Conductors - 15%

Market Segment-Wise
Government - 23%
Private - 66%
Export - 11% [
Product Portfolio-

Clintele

What is changed Now in company
1-Set up plant & started manufacturing of RDSO approved Railway Signaling Cables in 2020-21
2- More focussed on high value add HT Cables , post consolidation 50%+ contribution in sales Decreasing volume of low value added conductors

3-Started railway signaling cables in FY22 , it is expected to contribute significantly in future growth.
--

Why company can Grow-
1 -3X to 7X increase in daily electricity demand over the next 20 years. By 2040, IEA anticipates India’s installed power capacity to grow to up to 1500 GW (World Energy Outlook 2019 Stated Policies Scenario).

This will push the scale of India’s power market beyond the size of the EU’s synchronized grid, which connects around 1000 GW of installed generation across 27 countries, and bring it much closer to the size of China’s grid, which handled 2000 GW in 2019.

2-In the Union Budget 2021-22, GoI allocated INR 3tn for power distribution schemes over the next 5 yrs.( RDSS scheme )where beneficiary will be smart meter , transformer , electrical cable, meter enclosures and conductor manufacturing companies.

3-Railway signaling business will have sizeable share in the overall business; may bring higher-than- expected growth in the next 2-3 years.
Weakness
-No entry barrier in this business

Although they are not dependent on Government orders but if Government orders increases in future then cash flow problem may arise .
-Raw material cost increase and margin pressures.
( Rest of The Data you can see from screener)

EV Charging cables will be another growth opportunity for cable industry .

Dynamic cables - Results below expectations, margin improvement is a positive surprise , order book 336 cr ( Disclosure - invested)