Archive · 21 Aug 2025
Analyst Recommends 'Buy' for Finolex Cables, Sets Target Price
Imagine a company called Finolex Cables, like a store selling wires.
In the last few months, they sold a lot more electrical wires, which helped them make more money.
However, some things they sold didn't make as much money as before.
They're also building a new factory to make a key ingredient for their products, which should make them more money in the future.
Experts think the company will do better soon because more people will be buying their wires.
They recommend buying the company's stock, meaning they think it's a good investment, but they did lower their price target slightly.
Finolex Cables saw a 13.4% year-over-year revenue increase in Q1, driven by strong electrical volume growth.
Margins were impacted by a weaker mix, with higher project sales and subdued agri-wire demand.
Communication cables experienced muted performance, but a new preform facility is expected to boost profitability.
Wire demand is projected to rebound in Q3 due to real estate completions and Bharat Net Phase-3.
Analysts maintain a 'Buy' rating with a target price of ₹1,031, though the previous target was ₹1,293.
- Who
- Finolex Cables and financial analysts providing an assessment.
- What
- Finolex Cables' financial performance and future outlook.
- When
- Q1 of an unspecified year, with expectations for Q3 and FY25-28.
- Where
- Information is about Finolex Cables operations and market.
- Why
- To assess the financial health of Finolex Cables and provide investment recommendations.
Risks
N/A
Margin Stability
Risks
Fluctuations in RM prices could dent margins
N/A
N/A
Net Income
Risks
A sharp compression in Finolex Industries’ profitability could squeeze its net income
N/A
N/A
Capex Commissioning
Risks
Timely capex commissioning and backwards integration are critical to margin expansion in FY26/27
N/A
N/A
- Current Market Price (CMP)
- ₹851.35
- Target Price
- ₹1,031
- Recommendation
- Buy
- Q1 Revenue Growth
- 13.4% y-o-y
- Electrical Volume Growth
- 16% y-o-y
- EBITDA change
- FY26e/27e EBITDA tweaked by 9/10 per cent
- PAT change
- FY26e/27e PAT tweaked by 11/9 per cent
- Valuation Roll Over
- Sep’27