The company offers a wide range of products and exports to more than 60 countries. Serving industries such as power, oil & gas, railways and cement, it reaffirms revenue growth of 15-17% by 2024-25, driven by a strong order book and capacity expansions. It benefits from strong domestic and global W&C industry prospects. Infrastructure upgrades, network expansions, IT growth, and demand for flexible, fire-resistant cables are driving the global C&W industry.
On the other hand, favorable government policies, reforms in the energy sector, growth in industries such as real estate and electric vehicles, and increasing investments in transportation infrastructure are driving domestic demand for W&C. Additionally, the shift towards renewable energy sources, including solar and wind, is providing an additional boost to domestic and global demand for W&C. The company’s 2023-24 annual report estimates that the global W&C industry will grow at a CAGR of 9.1% from 2024 to 2032, reaching $547.1 billion by 2032. Management took several strategic initiatives in the recent past, which contributed to the performance boost. Strengthening distribution base, focusing on retail segment, increasing number of distributors, emphasis on improving relationships with channel partners through digitalization initiatives and targeted marketing to drive brand value are some of such initiatives. . To enhance its international business, the company developed a broad network of agents and marketing channels and obtained country-specific certifications.
It also accelerated its capex plan to meet rising demand and maintained a capex guidance of Rs 900-1,000 crore for 2024-25. Industrial capacity expansions at the Pathredi and Chinchpada plants have been completed in the first half of 2024-25, while commercial production at the greenfield facility expansion at the Sanand plant is expected from the first quarter of 2025-26. . The board also approved a QIP of Rs 2,000 crore to fund its capital expenditure (Sanand plant) and working capital requirements. It has generated strong free cash flows in recent years, which has supported debt reduction and strengthened the balance sheet. The proposed QIP will help the company stay debt-free. The stock has significantly outperformed the market benchmark in the last one year with a return of 59.1% compared to BSE Sensex with a return of 24%.Selection methodology: We choose the stock that has shown the maximum increase in ‘Analyst Consensus Rating’ over the last three months. The consensus rating is obtained by averaging all analyst recommendations after assigning weights to each of them (1 for strong buy, 2 for buy, 3 for hold, 4 for sell, 5 for strong sell). An upgrade in the analyst consensus rating indicates that analysts are becoming bullish on the stock. Only stocks with more than five analysts covering them are considered. You can see similar changes in consensus analyst ratings over the past week in the ETW 50 chart.
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