| Reviewer | Recommendation |
| IPOWatch | May Apply |
| Dilip Davda | May Apply |
Johnsoncab Electricals manufactures and sells Control Cables, Power Cables, Industrial Single and Multicore Control Cables, Housing/Building Wires, and Special-purpose Power Cables, including Welding Cable, Solar / Photovoltaic Cables, and Submersible Flat Cables under the brand “JOHNSON CABLES”.
For medium-term investment, this IPO might be a good fit. Overall, investors should carefully evaluate the company’s fundamentals, strengths, risks, and growth prospects before deciding whether to invest.
Strengths:
- The company is backed by well-experienced promoters who have over 37 years of experience in the wire and cable manufacturing industry.
- The business maintains high standards of quality, safety, and operational excellence and has received various awards and recognitions.
- The firm has maintained a well-established presence across diverse industries, reducing the dependency on a single end-use segment.
- Johnsoncab Electricals operates 2 manufacturing facilities equipped with modern production and testing equipment.
Weaknesses:
- The company is dependent on a few suppliers for most of its raw materials, and they do not have long-term contracts with them. Any delay, fluctuations, or increase in the prices of raw materials can adversely impact the overall business and financial condition.
- The firm is dependent on a few customers for the sale of its products. Loss of any of the top customers can badly impact its overall business and cash flow.
- It generates a major portion of its sales from operations in geographical regions, especially Gujarat, Rajasthan, West Bengal, and Uttar Pradesh. Any negative development across these regions can negatively affect its business operations and cash flow.
- As of August 31, 2026, its debt-to-equity ratio is high at 1.94, with outstanding debt of ₹7,756.89 Lakhs. Inability to pay the debt on time can adversely impact its business operations, financial condition, and overall performance.
Disclaimer
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
