Finolex Cables share price was up over 2 percent intraday at Rs 580 on November 25.
Research and broking firm Geojit Financial Services has an "accumulate" rating on the stock with the target of Rs 663, an upside of 14 percent, over the next 12 months.
The company, which is India’s largest manufacturer of electrical and telecommunication cables, reported a 90 percent year-on-year hike in net profit at Rs 233 crore in the September quarter.
"Demand scenario improved largely due to pent-up demand, revival in construction activities and improvement in consumer sentiments,” the research firm said.
H2FY22E performance was expected to be better, given better vaccination drive and a sharp rebound in economic activities, the research firm said.
"We continue to maintain a positive stance on Finolex Cables, given its clean balance sheet, strong cash flows and healthy earnings outlook of 28 percent CAGR over FY21-23E. We value the company's core business at P/E multiple of 17x on FY23E," it added.
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The company posted a net profit of Rs 122.83 crore for the July-September period last financial year, Finolex Industries said in a regulatory filing.
Total revenue from operations was higher at Rs 1,082.95 crore during the quarter. It was at Rs 585.55 crore in the year-ago period.
The company had the highest ever Q2 and H1(April-September) results and reported a significant improvement in operational performance, it said in a post result investors presentation.
The stock was trading at Rs 580, up Rs 13.00, or 2.29 percent at 11.45 am. It has touched an intraday high of Rs 589.05 and an intraday low of Rs 570.35.
The company has recently diversified into the fast-moving electrical goods (FMEG) segment to become a complete electrical products company. Earlier this month, it announced its entry into the room heater segment.
Finolex Cables has set up four state-of-the-art plants in Pimpri and Urse in Pune, Goa, and Roorkee in Uttarakhand.
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