Shares of Jainik Power Cables Limited rose nearly 10 percent on Tuesday after the company announced a strategic alliance with Dufil Prima Foods Limited, a member of the Singapore-headquartered Tolaram Group, opening potential access to the conglomerate’s international procurement network.
With a market capitalisation of about ₹215.57 crore, the NSE SME-listed stock climbed 9.99 percent to ₹150.25, compared with its previous close of ₹136.60. The company is trading at a price-to-earnings ratio of 13.98.
Alliance opens access to global markets
According to the company, the arrangement provides a pathway to the Tolaram Group’s procurement ecosystem for products including:
- Aluminium conductors
- Low-tension power cables
- Aerial bunched cables
- Medium-voltage cables up to 33 kV
Jainik said the potential procurement requirements across the Tolaram network could be around four to five times its existing annual production capacity of ₹750 crore, implying an addressable opportunity of roughly ₹3,000 crore to ₹3,750 crore.
However, the company clarified that these figures represent indicative potential and not confirmed order inflows. The agreement provides market access rather than guaranteed business volumes.
Dufil Prima Foods at the centre of the agreement
The alliance has been signed with Dufil Prima Foods Limited, known for manufacturing the Indomie noodle brand across Nigeria and several African markets.
The company said Dufil’s manufacturing operations, infrastructure projects and industrial expansions across emerging markets could create demand for power cables and conductors used in utilities, plant construction and energy connectivity.
Tolaram Group presence spans 75 countries
Founded more than seven decades ago, the Tolaram Group operates across sectors including consumer goods, infrastructure, logistics, financial services, technology and energy. It has operations in 20 countries and commercial reach across more than 75 markets.
For Jainik, the relationship provides an opportunity to establish connections in international markets where Indian cable manufacturers have traditionally had limited direct access. The extent of commercial benefits will depend on whether the partnership translates into recurring procurement contracts.
Manufacturing capacity provides room for growth
Jainik Power Cables operates a manufacturing facility in Sonipat, Haryana, with an annual production capacity valued at around ₹750 crore.
The company reported revenue of ₹351 crore in FY25, up from ₹67 crore in FY23, reflecting a three-year sales CAGR of 76 percent. Operating margins have improved to 4-5 percent from 2-3 percent in earlier years.
The gap between installed capacity and current revenue provides scope to absorb additional export orders without immediate capital expenditure.
Financial performance
Net profit increased to ₹9 crore in FY25 from ₹5 crore in FY24, while the company recorded a three-year profit CAGR of 387 percent.
Key financial metrics for FY25 include:
- Return on Equity (ROE): 57 percent
- Return on Capital Employed (ROCE): 40.2 percent
- Borrowings: ₹19 crore
- Promoter holding (March 2026): 67.36 percent
Debtor days improved from 94 days in FY21 to 32 days in FY25, reflecting better working capital management.
For the half-year ended September 2025, the company reported revenue of ₹185 crore and net profit of ₹6 crore. Trailing twelve-month revenue stood at ₹375 crore, with net profit of ₹11 crore.
Company overview
Incorporated in 2011, Jainik Power Cables Limited manufactures aluminium wire rods, ACSR conductors, LT power cables, aerial bunched cables and medium-voltage cables up to 33 kV. The company supplies utilities, EPC contractors and industrial customers and is pursuing international expansion following its listing on the NSE SME Emerge platform.
TL;DR
Jainik Power Cables gained 10 percent after announcing a strategic alliance with Tolaram Group company Dufil Prima Foods. The tie-up gives the company access to a procurement network spanning more than 75 countries, although no confirmed order values have been disclosed.
AI Summary
- Jainik Power Cables shares rose nearly 10%.
- Company signed a strategic alliance with Dufil Prima Foods.
- The agreement provides access to Tolaram Group’s global network.
- Potential addressable opportunity estimated at ₹3,000-3,750 crore.
- No firm orders or revenue commitments have been announced.
