Finolex Cables shares up nearly 4% following rally

Finolex Cables shares up nearly 4% following rally

The shares of Finolex Cables went up nearly 4% as a result of a rally in the market today. The stock was trading close to an intraday high of Rs 589.05, rising 3.89% on the BSE. Finolex Cables shares are higher than 20 day, 50 day, 100 day and 200 day moving averages, but are lower than 5 day moving averages.

The midcap stock has gained 96% in a year and has gone up 70% since the beginning of the year. The stock has climbed 28% in a month.

On the BSE, there were 0.24 lakh shares of the firm that changed hands with a turnover of 1.38 crore. The firm's market cap rose to Rs 8,955 crore on the BSE. The stock closed 3.27% higher at Rs 585 against the previous close of Rs 567. Sensex ended up 454 points higher at Rs 58,795 and Nifty increased by 121 points to 17,536.

Over the course of the next 12 months, research and broking firm Geojit Financial Services has assigned an accumulate rating to the stock with the target of Rs 663, an upside of 14 percent.

The research firm said that the demand scenario improved mainly due to pent-up demand, revival in construction activities and improvement in consumer sentiments.

The H 2 FY 22 E performance was expected to be better, given a better vaccine drive and a rebound in economic activities, the research firm said.

It added that we remain positive on Finolex Cables, given its clean balance sheet, strong cash flows and healthy earnings outlook of 28 percent CAGR over FY 21-23 E. We value the company's core business at P E multiple of 17 x on FY 23 E.

The company reported a 41.39 per cent increase in the company's net profit at Rs 144.77 crore for the second quarter ended September 30, 2021 against a net profit of Rs 102.39 crore for the July-September period last financial year. The total revenue from operations went up 46% to 932.98 crore during the quarter. It was 639.41 crore in the year-ago period.

The company has recently diversified into the fast-moving electrical goods segment in order to become a complete electrical products company. It entered the room heater segment earlier this month.

Finolex Cables is the flagship company of the Finolex Group. The company is the leading manufacturer of electrical and communication cables in India. It is primarily involved in the manufacturing of electrical cables, communication cables and electrical appliances.