Shares of Finolex Cables rose nearly 4% amid a rally in broader market today. The stock touched an intraday high of Rs 589.05, rising 3.89% on BSE. Finolex Cables shares stand higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.
The midcap stock has gained 96% in one year and risen 70% since the beginning of this year. In a month, the stock has climbed 28%.
Total 0.24 lakh shares of the firm changed hands amounting to turnover of Rs 1.38 crore on BSE. Market cap of the firm rose to Rs 8,955 crore on BSE. Later, the stock closed 3.27% higher at Rs 585 against the previous close of Rs 567. Sensex ended 454 points higher at Rs 58,795 and Nifty rose 121 points to 17,536.
Meanwhile, 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, over the next 12 months.
"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.
The company reported a 41.39 per cent rise in consolidated 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 July-September period last financial year. Total revenue from operations climbed 46% to Rs 932.98 crore during the quarter. It was at Rs 639.41 crore in the year-ago period.
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 is the flagship company of the Finolex Group. The company is India's leading manufacturer of electrical and communication cables. It is principally engaged in the manufacturing influence or of electrical cables communication cables & other electrical appliances.
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