In today’s trading session, the cable manufacturer company’s stock surged nearly 20% and locking itself at the upper circuit limit. The company has announced that it successfully secured multiple Bureau of Indian Standards (BIS) licenses, due to which the market responded madly. The development in the company’s authenticity boosts credibility and opens new growth opportunities.
Let’s break down why this news is important and what its impact is on the company’s future growth.
Before going through the main topic, let’s have a quick view of Nifty 50 and the Sensex’s performance today.
Market Updates
Today, August 20, 2025, both the Nifty 50 and Sensex opened with a slightly gap down. Nifty 50 opened at 24,965.80, made its high/low at 25,088.70/24,929.70 respectively, and closed with a rise of 69.90 (0.28%) points at 25,050.55, whereas Sensex opened at 81,671.47, made its high/low at 81,985.62/ 81,494.50 respectively, and closed with a rise of 213.45 (0.26%) points at 81,857.84.
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What Does Securing BIS Licenses Mean?
The Bureau of Indian Standards (BIS) certification is one of the most valuable approvals in India. BIS certification ensures that the products made by the company meet the required safety, quality, and performance benchmarks.
The BIS certification achieved by Dynamic Cables Ltd. signifies:
Enhanced Product Credibility
The cable buyer Customers prefer suppliers with BIS-approved products. They are mostly government and large industrial buyers.
Market Expansion
This license achievement opens the door for the new target for the cable manufacturer company. Now, the company can also make cables for new segments like utilities, infrastructure projects, and defense applications.
Stronger Brand Image
In this highly competitive cable manufacturer sector, BIS licenses reinforce trust among shareholders, which is a very crucial part for the stock performance in the future.
The cable manufacturer company Dynamic Cables places itself in a stronger position to compete in both domestic and export markets.
Why Did the Stock Rally?
Here are some key reasons behind the 20% surge in stock:
Higher Revenue Potential
This BIS license enables a cable manufacturer company to bid for large-scale government tenders and infrastructure projects.
This will directly enhance the cable manufacturer company’s revenue in the coming quarters. With the help of a BIS license, the company will also forge long-term contracts with state utilities, railways, and renewable energy developers.
These types of opportunities reflect a stronger order book, improved market share, and consistent top-line growth over the next few years.
Stronger Margins
Generally, due to the demand for certified products, the products of the company command better pricing.
In that way, the company could demand a higher price for its products, which could improve the company’s EBITDA and profit margins.
Positive Market Sentiment
The cable manufacturer company has drawn the attention of investors with its proactive step. Hence, today’s performance in the stock was completely due to quality and compliance.
Sectoral Tailwinds
The certified cables are in strong demand for power grid modernization, renewable energy expansion, and housing infrastructure creation, and the Government of India is also pushing these projects.
Fundamentals & Shareholdings
The cable manufacturer company Dyanamic Cable Ltd. is in a small-cap category with a market cap of ₹ 2,326 crore. Currently, the stock is trading at a price of ₹ 480. The 52-week high/low are ₹ 548/228, respectively. The Price Earnings ratio of the stock is 32.6. The ROE/ROCE are 22.1/26.4 % respectively. The company’s dividend yield is 0.05%. The face value of the company is ₹ 10. The company has reserves of 350 crore, whereas the debt is 59 crore.
As per June 2025 data, promoters are holding the majority of shares of the company, which is 68.18%. The FIIs and DIIs are holding 1.49 % and 1.64 % of shares respectively, both FIIs and DIIs are increasing their holding slowly as compared to the previous quarter. The public holding is 28.68 % of the company’s shares.
The company’s short-term and long-term performance
The company’s short-term and long-term returns are: 1-day return: 20 %, last 5-day returns: 20.15 %, 1-month returns: -5.93 %, 6-month returns: 50.20 %,1-year returns: 76.31 %, 3-year returns: 938.84 %. 5-year returns: 541.03 % and its all-time returns are the same as its five-year returns, as the company was listed on NSE and BSE on 29th July 2022.
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