Shilpi Cable Technologies Ltd: The Name of one of the Stocks Revealed....

I had in my earlier posts, spoken of a couple of stocks which are expected to give good return in  the

Photo: The Economic Times

short term: one of them is Shilpi Cable Technologies Ltd, which we entered at around Rs.26, last week. The stock has already given around 10% return to the investors....

An ISO 9001:2000 certified company, Shilpi Cable Technologies Ltd (Rs.29.80) is into the business of manufacturing RF Telecom cables and other cables which are primarily used in the telecom, automotive and consumer durable sectors.

They have a couple of plants both located in north India,, within 60 km of Delhi where these products are manufactured.

They have an impressive customer list, which includes who's who in their respective sectors: Bharti Airtel, Vodafone, Aircel, BSNL, MTNL, Honda, Ashok Leyland, Eicher Motors, Hero MotoCop, Telcom,  Maruti, among others. A third each of the company's business comes from Telecom and Automotive space, while the balance comes from other segments. 

More than 95% of the company's business comes from the domestic space and it is a net importer  of around 30% of their total sales. 

The share price of  the stock dropped from Rs.225.60 on 20 April 2017 to Rs.20 on 15 June, 2017 (BSE), only to bounce back, due to its hidden fundamentals.

A major reason for this drastic fall in the stock price was  due to an overseas lender filing a petition against the company under the Insolvency and Bankruptcy Code, 2016.

On 13 October 2015, Shilpi Cable Technologies Ltd (Rs.29.80) issued and allotted 15 million convertible warrants on a preferential basis to Shilpi Cables Private Limited, a promoter group company, at an exercise price of Rs.60 per underlying equity share of the face value of Rs.10 each, out of which 8 million warrants had been converted into an equal number of equity shares on 28 March 2016. On 12 April 2017, the company reported to the stock exchanges that Shilpi Cables Private Limited had submitted the request for conversion of 7 million of these convertible warrants into equity shares of the company as per the terms of the issue of those warrants.

The investors can still enter the scrip, with short term targets of Rs.41-47. But this is  NOT an "Investment Grade Scrip", as of now -- so you need to enter and exit the scrip fast, if you are looking for some quick bucks....

I will reveal the name of other scrip shortly, here in this blog: so keep do keep an eye on  my postings. Moreover, those who want to enroll in my new service can send me a mail at: suman2005s@rediffmail.com / sumanm2007s@gmail.com.

These days, due to some teething domestic issues and due to my involvement in Bollywood, IT (Digital Marketing, Content Development, etc) and other Sectors, I am not getting time to do the regular updates on my blog. Hope, the things will get streamlined soon...