Dynamic Cables IPO
Dynamic Cables IPO comprises of 5,844,000 Equity Shares of face value of Rs 10 each for cash at a fixed price of Rs 40.00 per equity share. Dynamic Cables is a manufacturer and suppliers of Cables & Conductors for private and government clients across India & abroad

Check Dynamic Cables IPO Allotment Status (when becomes available) : Click Here

Final Subscription Figures:
Bids Received  (X Times)
NII DII Total
Day 1 1.11 0.59 0.85
Day 2 2.57 5.92 3.74
Day 3 40.32 7.12 22.03
Dynamic Cables IPO Details:
Issue Period 04 Dec 2017 to 06 Dec 2017
Issue Size (No. of Shares) 5844000
Issue Size (Rs. Crore) 23.376
Face Value 10
Issue Price 40
Market Lot 3000
Minimum Bid Quantity 3000
Listing BSE
Lead Managers HEM SECURITIES LIMITED
Registrar Bigshare Services Private Limited

About Dynamic Cables
  • Dynamic Cables is engaged in manufacturing of Cables and Conductors which widely include manufacturing of Low Voltage and High Voltage Power Cables, Aerial Bunched Cables, All Aluminium Conductor (A.A.C.), All Aluminium Alloy Conductor (A.A.A.C.), Aluminium conductor steel reinforced (A.C.S.R.) Conductors and Service Drop Cables used for transmission and distribution
    of Electricity.
  • Dynamic Cables manufacturing facilities are distributed in three units located in Jaipur.
  • Company has latest machinery and equipment, In-house testing facilities and qualified engineers, which help them in maintaining quality standards as well as an efficient delivery record with appropriate after sales service.
  • Besides catering to Indian market, Dynamic Cables exports its  products to countries like Kenya, Tanzania, TOGO, Nigeria, Benin, Uganda, Rwanda, NEPAL, Mauritius, Afghanistan, Jordan, Dubai etc
Financials
Rs. Million
Particulars Q1Fy18 Mar 2017 Mar 2016 Mar 2015 Mar 2014
Net Sales 872.6 2999.86 2678.75 2603.89 1974.12
Total Income 888.5 3021.46  2697.99  2621.18  1991.70 
PBIDT 66.03 233.63 224.62  110.97  102.37 
PBT 30.93 121.21  99.78  36.17  21.36 
PAT 20.48 79.2 67.97 25.38 15.71
PAT Margin(%) 2.35% 2.64% 2.54% 0.97% 0.80%
Equity 107.8 107.8 100 100  
Reserves and Surplus 305.05  170.46  102.49  77.43 
Total Debt 893.46  923.61  491.06  425.94 
NAV 40.2 38.3      
Net Worth 412.85 270.46  202.49  177.43 
RONW 23.18  28.74  13.36  9.54 
ROCE 17.02  21.70  13.85  14.75 
EPS 1.90 7.35 6.80 2.54
Face value 10
IPO Price 40
Price / Earning 12.84
Price / Book Value 1.00
Post Issue Equity 220.1
EPS (post Issue) 3.60
PE Post Issue 11.12
Cagr  Sales (Fy13-17) 14.24%
Cagr NP (Fy13-17) 97.55%
Market Cap 880.4 Million
Market Cap/Sales 0.29

Objectives of theDynamic Cables IPO:

  • To Meet Working Capital requirements.
  • To Meet General Corporate Expenses
  • To Meet Issue Expenses
Rationale for Investment
  • Besides Power sector generation, Transmission, Dynamic Cables is serving sectors like – Industrial, Exports, Turnkey projects, Infrastructure works
    etc. in India and abroad.
  • While power sector contributes 42% to its sales, 13.6% is contributed by Exports and rest comes form other sectors. 
  • Dynamic Cables is  a “Government Recognized Export House” from the Ministry of Commerce & Industry, Government of India and are presently exporting directly and indirectly through merchant exporters to many Countries in the Asian subcontinent, Africa and Middle East.
  • Company is  approved by the state owned electric utilities company “POWERGRID”. Dynamic Cables is also approved With BHEL, Larson &Toubro Ltd, TATA Projects Ltd, North Western Railways, Public Works Department, Maharashtra along with all major state electricity boards in India.
  • Besides Government clients, the companies products are also widely being used amongst various Indian private clients which include Gammon India, Jaguar Overseas,Mohan Energy, L&T, TATA, Bajaj, Voltas etc
  • In addition to three existing plants , company is in process of installation of new plant at  Reengus, Distt. Sikar, Rajasthan, India for manufacturing of new range of cables and conductors such as  66KV High Voltage cables, Railway signaling cables and Optical fiber ground wire. 
Risks & Concerns
  • Dependence on State Electricity boards poses risks of delayed payments
  • Being BSE SME issue can face lack of liquidity.
  • Net profit margins are in range of 2-3%.
Peer Comparison:
Finolex KEI Cords Dynamic
Market Price 637 397.95 137.95 40
Net Sales 2987.64 2502.98 323.41 299.99
PBIDT 587.36 384.78 35.07 23.36
PBIDT Margin 19.66% 15.37% 10.84% 7.79%
PAT 352.18 98.64 5.03 7.92
PAT Margin 11.79% 3.94% 1.56% 2.64%
Equity 124.1 15.56 12.93 22.01
Face Value 10 2 10 10
Networth 2291.39 473.46 121.3 41.285
NAV 184.65 60.86 93.83 38.3
EPS 6502.67 12.68 3.89 3.60
PE 0.10 31.39 35.46 11.12
P/BV 3.45 6.54 1.47 1.04
Market Cap 7905.17 3096.05 178.37 88.04
Market Cap/ Sales 2.65 1.24 0.55 0.29
Assessment
  • On post issue equity, the issue is priced at a P/E of  11.12  which is quite reasonable when compared with its peers.
  • Dynamic Cables has shown good growth in Revenue and Profits in the last three years. Its CAGR Sales stood at  14% while CAGR Net profit stood at 97%.
  • Dynamic Cables IPO appears reasonably priced. 
  • Though there can be liquidity concerns on BSE SME Platform in medium term, Iam applying for this IPO.

Standard disclaimer:  I am not a SEBI registered analyst and above analysis is for educational purpose only. I may have vested interest in every stock I discuss and my views may be biased. Please do your own due diligence as stock market investments have high degree of inherent risk.

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