JD Cables Limited, the power cables and conductors manufacturer, made a flat debut on BSE SME on September 25, 2025. After closing its IPO bidding between September 18-22, 2025, the company commenced trading at ₹160 opening premium but declined to ₹152, matching the issue price with no gains, reflecting cautious investor sentiment towards the cables sector despite a strong subscription response.
JD Cables Listing Details
JD Cables Limited launched its IPO at ₹152 per share, with a minimum investment of 1,600 shares, costing ₹ 243,200. The IPO received an exceptional response, with a subscription of 127.78 times. Retail investors subscribed at a strong 106.89 times, NII at an outstanding 179.28 times, and QIB at a solid 125.44 times, indicating overwhelming investor enthusiasm across categories, despite a subsequent flat listing performance.
First-Day Trading Performance Outlook
Invest in Indian Markets and Unlock Future Potential With 5paisa!- Listing Price: JD Cables share price opened at ₹160, representing a premium of 5.26% from the issue price of ₹152, but declined to ₹152 during trading, delivering no gains for investors, reflecting cautious market sentiment towards the cables sector.
Growth Drivers and Challenges
Growth Drivers:
- Rapid Business Scaling: Exceptional revenue growth of 149% to ₹250.70 crore in FY25 with PAT surging 384% to ₹22.15 crore, demonstrating remarkable business scaling and operational leverage in power cables manufacturing.
- Comprehensive Product Portfolio: Diversified range including power cables, control cables, aerial bunched cables, and various conductors (AAC, AAAC, ACSR) serving power transmission and distribution sectors with strategic manufacturing locations.
- Outstanding Profitability Metrics: Exceptional ROE of 117.17%, impressive ROCE of 43.64%, solid PAT margin of 8.84%, and healthy EBITDA margin of 13.62% indicating superior operational efficiency and pricing power.
- Strategic Expansion Focus: IPO proceeds allocated for working capital enhancement and debt reduction, supporting business scaling and financial optimisation in the growing cables market.
Challenges:
- Sustainability Concerns: Dramatic financial performance surge raises questions about earnings sustainability, with 384% PAT growth appearing potentially inflated for IPO valuation enhancement, requiring scrutiny of business fundamentals.
- High Financial Leverage: Elevated debt-to-equity ratio of 1.5,3 indicating substantial financial leverage requiring careful debt management and potential strain on cash flows during business expansion phases.
- Competitive Market Dynamics: Operating in a highly competitive and fragmented cables sector with numerous established players affecting pricing power, market share retention, and margin sustainability pressures.
- Valuation Premium Concerns: High price-to-book value of 8.39x and post-IPO P/E of 15.47x reflecting premium valuation multiples requiring sustained exceptional growth execution to justify investor expectations.
Utilisation of IPO Proceeds
- Working Capital Enhancement: ₹45.00 crore for funding working capital requirements supporting inventory management, order fulfilment, and business scaling in power cables manufacturing.
- Debt Reduction: ₹26.00 crore for repayment and prepayment of borrowings, improving financial leverage and reducing interest burden from current elevated debt levels.
- General Corporate Purposes: Supporting business operations, strategic initiatives, and operational optimisation for long-term growth and competitiveness.
Financial Performance of JD Cables
- Revenue: ₹250.70 crore for FY25, showing exceptional growth of 149% from ₹100.85 crore in FY24, reflecting strong market demand and successful business execution in the cables sector.
- Net Profit: ₹22.15 crore in FY25, representing a remarkable growth of 384% from ₹4.58 crore in FY24, indicating substantial operational leverage benefits and margin expansion.
- Financial Metrics: Exceptional ROE of 117.17%, impressive ROCE of 43.64%, elevated debt-to-equity ratio of 1.53, solid PAT margin of 8.84%, healthy EBITDA margin of 13.62%, and estimated market capitalisation of ₹342.78 crore.
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