Just a day after listing at a solid premium of 65%, Orient Cables share price crashed as much as 10% in morning deals on Tuesday, 6 October, largely due to profit booking. Shares of Orient Cables (India) opened at ₹380 against their previous close of ₹403.30 and dropped 10% to a fresh all-time low and their lower circuit level of ₹363. However, even at this price, the stock is up 33% from its IPO price of ₹272.
On Monday, 5 October, the stock listed at a 65% premium at ₹448 on the BSE.
Experts believe the sharp decline in the stock could be due to investors selling to pocket listing gains. In the coming months, investors’ focus will be on quarterly revenue growth, profitability, order execution, and operating cash flow, say experts.
Orient Cables business overview
Orient Cables is a business-to-business (B2B) manufacturer, primarily engaged in networking cables and passive networking equipment. It caters to high-growth industries, including telecom, broadband, data centres, renewable energy, smart building automation, FMEG, automotive and e-mobility.
The company has a global presence. It exports products to overseas customers located in the UAE, Qatar, the USA, Australia, New Zealand, Nepal, Singapore, and the Netherlands, amongst others.
Orient Cables financial performance
The company’s revenue from operations and profit have seen sustained growth over the last few years.
In FY24, its revenue was ₹657.77 crore, increasing to ₹824.96 crore in FY25 and to ₹11,71.65 crore in FY26.
Profit in FY24 was ₹40.1 crore, which increased to ₹53.3 crore in FY25 and to ₹53.56 crore in FY26.
What experts say about the stock?
Ravi Singh, Chief Research Officer at Master Capital Services, underscored that while the growth prospects of Indian networking cables and the fibre-optic cables market are huge, the key factors to track will be whether the company can sustain its revenue growth, improve profitability and execute its expansion plans while maintaining healthy working capital and cash flows.
The Indian networking cables market is projected to grow at a CAGR of 18.7% between FY26 and FY31, reaching ₹8,450 crore. The fibre-optic cables market is also projected to grow at 17.3% CAGR, from ₹10,500 crore in FY26 to ₹23,310 crore by FY31.
“Long-term investors may continue to track the company’s networking cable and passive networking equipment business, supported by rising demand for digital connectivity and infrastructure. Rather than focusing only on today’s listing performance, investors may monitor quarterly revenue growth, order execution, EBITDA margins, capacity utilisation and operating cash flow,” said Singh.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
