Delton Cables (BSE: 504240) is a veteran in the Indian low-voltage cables market, with a rich history spanning over 75 years. The company has successfully transformed itself from a telecom cables specialist into a customized branded supplier for high-growth sectors like railways, EPC, telecom etc.
7813ad17-09d5-4d2f-9156-bf95edd2cd62.pdf (bseindia.com)

Positives:

• Diversified Product Portfolio: The company’s versatile range of cables caters to diverse industries, including EPC, Railways, Telecom and in future, possibly into emerging sectors like Nuclear and Defense
• Asset-Light Expansion: Delton’s phased capex plan and focus on an asset-light model aim to improve asset turnover and capacity utilization, which stood at 76% in FY24.
• Improving Working Capital: The company has reduced its working capital cycle from 218 days in FY22 to 138 days in FY24, supporting its future growth.
• Transformation & Growth: Delton has now focused on large private EPC players, added new management talent, and built a niche product portfolio targeting high-growth segments to drive revenue growth, profitability, and working capital efficiency.

Negatives:

• Raw Material Price Volatility: Delton’s profitability is susceptible to fluctuations in the prices of key raw materials like copper and aluminium.

Risks:

• Increasing Competition: The company faces competition from both organized and unorganized players in the cables and wires industry. Delton having a very small mcap, has limited ammo to indulge in a pricing war.
• Execution Challenges: The success of Delton’s new manufacturing facility for EPC cables, expected to commence production in September 2024, will be crucial to its expansion plans.

Overall, Delton Cables appears well-positioned to capitalize on India’s infrastructure growth story, given its diversified product offering and asset-light expansion strategy. What makes it stand out is it’s relatively lower Price to Sales of around 1, and a it’s board has some names with good industry experience, which gives some confidence while investing.

Disclosure: Inveseted, may be biased

I think housing loan growth shows some seasonal trends, with lower disbursements in Q1 and it rises until Q4. Sharing some examples below.

Canfin quarterly disbursements

Aptus quarterly disbursements

I guess the same is now getting reflected in Propedge’s revenues as they are reaching decent market shares.

Propequity reports half-yearly results as they are a SME. However, they post quarterly presentations.
https://nsearchives.nseindia.com/corporate/PROPEQUITY_19082024094126_Investorpresentation_final.pdf

Can you elaborate please?

So, would you say DCF is not applicable to any high growth business? Why? It is a business after all. It may be difficult to predict future cash flows given the high growth, but that doesn’t mean DCF cannot be applied, IMHO!

For ‘large, stable, low capex companies with predictable earning outlook’, DCF is easier, that’s all