Last few years were very tough for OFC manufacturers both
locally and globally.In India ,year long unhealthy competition eroded the
financial health of many user companies which forced them to postpone their
telecom infrastructure expansion programs .On the other side prolonged recessionary situation in
developed countries adversely affected Indian OFC makers’ efforts to tide over the
difficult situation through export.Lot of consolidation happened in this
industry and now only the fittest is surviving.After a long period ,signs of
recovery is visible in this industry.In our country National Optical Fibre
Cable Network( NOFN) project will be a big boon for OFC makers.NOFN is an ambitious
project of India goverment to provide broadband connectivity to over two lakh Gram Panchayats at a cost of Rs.20,000 crore .
A special purpose vehicle -Bharat Broadband Network Ltd (BBNL) - was created for
the execution of this project. BBNL has divided the project into 6 packages-
East, West, North, South, Central and Northeast , and this project is scheduled
to be completed by September 2015. But like the case of any other government
projects ,it already delayed and only recently orders for supplying cables
and equipments started to issue to various companies. I think it is a huge
opportunity for Indian OFC manufacturers and will be an additional push along
with the over all revival in industry. Suggesting two low priced stocks from
this sector in this week .
Aksh Optifibre
Aksh Optifire is a leading OFC maker from India with two
manufacturing facilities ,one each at Bhiwadi and Sikar in Rajastan.Company is
a major exporter of OFC and earning more than 70 % income from exports
.Recently company awarded an order for supplying OFC worth Rs.200 Cr under the
NOFN projects .For the first half ended in September 2013 ,Aksh reported a top
line of Rs 122 Cr and a net profit of Rs.11.5 Cr .Promoters are continuously
buying shares from open market in recent times and stock is currently trading
around Rs.15
Link to Company Website HERE
Birla Ericsson
Optical Ltd
It is a joint venture between M P Birla Group of India and Ericsson
Cables AB of Sweden.Company reported good
performance in first nine months of this
FY where it reported a Sales of Rs.189 Cr ( Rs.89 Cr ) and a profit of Rs.11 Cr
( Rs.5 Cr) . Currently stock is trading around Rs.23
Link to Company Website HERE
Along with NOFN ,some other major initiatives which will aid
the growth of this industry is at various stages of planning and
implementation.A project for connecting all locations of our armed forces
points through OFC is expected to kick start in near future.Private sector
players are keen to tap new opportunities
through FTTH (Fibre-to-the-
