Buy Finolex Cables; target of Rs 1250: Sharekhan

Sharekhan is bullish on Finolex Cables has recommended buy rating on the stock with a target price of Rs 1250 in its research report dated June 04, 2025.

Broker Research

June 05, 2025 / 10:22 IST

buy

26 Aug, 2025 12:21

Volume

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Sharekhan's research report on Finolex Cables

Q4 numbers were a mixed bag with revenues rising 13.8%, but OPM declining to 10.7% from 11.6%. Margins were impacted by volatility in commodity prices and a change in product mix. Segment wise – Electric cables/communication cables/copper rods/FMEG reported revenues of Rs. 1,391/123/482/65 crore, with a growth of 16%/-4.0%/0%/2% y-o-y. Finolex has spent Rs 236 crore in FY25 and looks to further incur ~Rs 150 crore in FY26. The e-beam facility is commissioned in FY25 and two new products for the solar and real estate have been introduced. Finolex has a leadership position and is a strong brand in the cables & wires (C&W) segment. In the long term, optic fiber cables should do well, as India remains underpenetrated in the segment.

Outlook

We maintain a Buy rating for a revised PT of Rs 1,250. At CMP, the company trades at a valuation of 19x on FY27 earnings.

For all recommendations report, click here