By Chaitanya
BBA Finance Graduate & 6+ Years of Experience in Stock Market & Finance
In a significant development for the Indian cable industry, Marco Cables & Conductors Ltd, often noted for its accessible price point as a “penny stock”, has secured a substantial domestic purchase order. This order, valued at an impressive Rs 7,83,24,000 (which is ₹78.324 million), is for the supply of aluminium power cables to a well-known client within the sector. This move underscores the growing demand in the power infrastructure segment and signals a positive outlook for the company.
The company, whose shares have been trading around the Rs 50 mark recently, has been quietly strengthening its financial foundations. Its latest financial reports highlight a robust performance, especially for the fiscal year ending March 2025. This recent order is a testament to its operational capabilities and market trust.
Strong Financial Performance: A Closer Look at FY 2025
Marco Cables & Conductors Ltd has demonstrated impressive financial growth. In FY 2025, the company reported a total revenue of Rs 111.67 Crores, marking a significant 54.93% year-on-year growth. This surge in revenue translated into a handsome profit after tax (PAT) of Rs 5.20 Crores, showing an even more remarkable 71.10% increase compared to the previous year. The company maintained a healthy operating profit margin of 12.02% and a net profit margin of 4.66%, indicating efficient management of costs. The basic earnings per share (EPS) for FY 2025 stood at Rs 2.78.
Here’s a snapshot of the key financial metrics for FY 2025:
| Metric | Value | Unit / Description |
|---|---|---|
| Total Revenue (FY 2025) | Rs 111.67 | Crores |
| Total Revenue Growth | 54.93% | YoY Growth |
| Total Expenses (FY 2025) | Rs 104.60 | Crores |
| Profit After Tax (PAT) (FY 2025) | Rs 5.20 | Crores |
| PAT Growth | 71.10% | YoY Growth |
| Operating Profit Margin | 12.02% | |
| Net Profit Margin | 4.66% | |
| Basic EPS | Rs 2.78 | Per share |
| ROE | 16.14% | Earnings vs Equity FY25 |
| Operating Income (March 2021 5-year low) | Rs 47.12 | Million |
| Interest Expense as % of Operating Revenue | 5.68% | FY 2025 |
| Employee Cost as % of Operating Revenue | 2.13% | FY 2025 |
Financial Snapshot Over Recent Years
Examining the company’s performance over the past five years reveals a consistent upward trend. From a revenue of Rs 42 Crores in March 2021 to Rs 111 Crores in March 2025, Marco Cables & Conductors has demonstrated steady operational improvement. Profits have also shown a significant recovery from nil in earlier years to Rs 5 Crores in FY 2025, alongside controlled expenses and interest costs.
| Year Ended | Revenue | Expenses | Operating Profit | Profit before Tax | Profit after Tax (PAT) | EPS (Rs) | Interest |
|---|---|---|---|---|---|---|---|
| Mar 2021 | 42 | 37 | 5 | 0 | 0 | 1.63 | 5 |
| Mar 2022 | 56 | 50 | 6 | 0 | 0 | 2.78 | 5 |
| Mar 2023 | 56 | 47 | 9 | 4 | 3 | — | 5 |
| Mar 2024 | 72 | 61 | 10 | 4 | 3 | — | 6 |
| Mar 2025 | 111 | 98 | 14 | 7 | 5 | 2.78 | 6 |
Balance Sheet and Debt Position
As of March 2024, Marco Cables & Conductors holds total shareholder equity of ₹297.11 million. The company does carry a total debt of ₹422.33 million, resulting in a debt-to-equity ratio of 142.1%. While this indicates a notable reliance on debt, the interest coverage ratio stands at 2.8x, suggesting the company generates enough operating profit to cover its interest expenses. Its total assets were ₹841.58 million against total liabilities of ₹544.47 million.
| Parameter | Value | Unit |
|---|---|---|
| Total Shareholder Equity | ₹297.11M | Million (₹) |
| Total Debt | ₹422.33M | Million (₹) |
| Debt to Equity Ratio | 142.1% | Ratio |
| Total Assets | ₹841.58M | Million (₹) |
| Total Liabilities | ₹544.47M | Million (₹) |
| Interest Coverage Ratio | 2.8x | Times EBIT coverage |
| Cash & Short-term Investments | ₹34.45M | Million (₹) |
| Short Term Assets | ₹791.6M | Million (₹) |
| Short Term Liabilities | ₹326.0M | Million (₹) |
| Long Term Liabilities | ₹218.5M | Million (₹) |
Significant Credit Rating Upgrade
A strong indicator of the company’s improving financial health is its recent credit rating upgrade. On July 29, 2025, CARE Ratings upgraded Marco Cables & Conductors’ long-term bank facilities rating to CARE BB+; Stable from CARE BB; Stable. This upgrade was attributed to the company’s better-than-expected financial results for FY25, including robust operating income growth and improved debt coverage metrics, as stated by CARE Ratings. This positive rating action can potentially lead to more favourable borrowing terms for the company in the future.
| Facility | Amount (₹ crore) | Rating | Rating Action |
|---|---|---|---|
| Long Term Bank Facilities | 20.00 | CARE BB+; Stable | Upgraded from CARE BB; Stable |
| Long Term / Short Term Bank Facilities | 17.00 | CARE BB+; Stable / CARE A4+ | Upgraded from CARE BB; Stable / CARE A4 |
| Short Term Bank Facilities | 11.00 | CARE A4+ | Upgraded from CARE A4 |
Shareholding and Market Dynamics
The company’s market capitalisation currently fluctuates between approximately Rs 74.6 and 82 Crores, having seen a decline over the last year. Sumit Sugnomal Kukreja holds a significant stake as the top shareholder with 43.6%. While shares outstanding have slightly decreased by about 2.65% over the past year, the company’s stock, trading around Rs 50, remains in the “penny stock” category. Recent technical analysis from May 2025 indicates a mildly bearish trend, despite the underlying positive fundamental developments like the strong Return on Equity (ROE) of 16.14% for FY 2025, which outperforms its five-year average of 12.32% as reported on August 14, 2025.
Recent Developments and Outlook
The recent domestic purchase order for aluminium power cables adds to the optimistic narrative surrounding Marco Cables & Conductors Ltd. The significant growth in revenue and profit in FY 2025, coupled with the upgraded credit rating from CARE Ratings, highlights a company on an upward trajectory. Despite facing some short-term market fluctuations and technical bearish indicators, the fundamental improvements suggest a company that is managing its operations and finances effectively. Investors interested in companies with growth potential in the infrastructure sector might find this an interesting prospect, keeping in mind the typical risks associated with smaller market-cap stocks.
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