Small cap world is abuzz with multibaggers these days. Some of the small caps have come up stellar quarterly performance and Birla Cables is one of them. The stock is on tear and has risen by more than 61 per cent in one month alone.
Apart from the substantial improvement in the financials with multifold rise in net profits on standalone basis in march quarter, one of the biggest trigger in the long term for the stock is the increasing demand outlook for its products i.e telecommunication cables and Copper and Fibre Optic cables. A huge demand uptick for optical fibres cables and the company’s expansion plans is what is keeping the investors glued to this multibagger small cap counter.
Recently Birla Cables announced setting up a subsidiary in Dubai Multi Commodity Zone. The entity is expected to be incorporated as a wholly-owned subsidiary to carry out Liasioning, Business Development, processes for getting the end customer’s approvals, Tender participation and MIS generation to win business in the parent company’s favour.
Birla Cables is up by more than 13 per cent on intraday basis after gaining 20 per cent in the previous session. In one year the stock is up by 131 per cent. BSE SmallCap index is seen outperforming frontline indices on Tuesday.