Now Reading: Finolex Cables jumps 6% on Q1 results, Jefferies raises target
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Finolex Cables jumps 6% on Q1 results, Jefferies raises target
Finolex Cables shares closed nearly 6 per cent higher at Rs 1,278.90 on the BSE after hitting a fresh 52-week high of Rs 1,375. The rally followed strong Q1 results that beat…
The Story in Brief
Finolex Cables shares closed nearly 6 per cent higher at Rs 1,278.90 on the BSE after hitting a fresh 52-week high of Rs 1,375. The rally followed strong Q1 results that beat estimates. The company reported a 59.4 per cent year-on-year jump in standalone net profit to Rs 221.28 crore, while revenue from operations rose 44.2 per cent to Rs 2,013.15 crore.
Jefferies has maintained its 'accumulate' rating on the stock and raised its target price to Rs 1,410 from Rs 1,200. The brokerage said the electricals segment, including cables and wires, saw strong sales and EBIT growth driven by multiple price hikes over the past year. It expects margin benefits from backward integration to kick in from Q3FY27.
The Indian Opinion
The usual narrative around cable stocks is that growth follows a booming real estate cycle, but Finolex's numbers show pricing power is the real engine here, multiple price hikes in 12 months delivered a 59 per cent profit leap. Investors should not confuse cyclical demand with structural advantage. The test to watch for: can Finolex sustain EBIT margins once price hikes slow and backward integration benefits fully show up from Q3?
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
