Finolex Cables Surges to 52-Week High, Strong Q1 Results Driven by Price Hikes

Finolex Cables shares have surged to a 52-week high, with a 14% jump in the stock price, driven by strong Q1 results and a recommendation from Jefferies to accumulate the stock with a target price of ₹1,410.

Finolex Cables Reports Strong Q1 Results

Finolex Cables reported a significant increase in standalone profit after tax to ₹221.28 crore in Q1FY27, a 59.4% year-over-year (y-o-y) growth from ₹138.82 crore in Q1FY26.

The company’s revenue from operations also increased by 44.2% y-o-y to ₹2,013.15 crore in Q1FY27 from ₹1,395.52 crore in Q1FY26.

Key Driver of Growth

Jefferies attributed the strong Q1 results to multiple price hikes in the electricals segment, including C&W, sales, and EBIT growth, which was driven by these price increases over the last 12 months.

Market Impact and Details

• Jefferies expects the margin benefit of backward integration to accrue from Q3FY27.
• The brokerage also expects FMEG to sustain positive EBIT.
• Finolex Cables’ stock has rallied 29.6% in the last two trading sessions.

Key Takeaways

• Finolex Cables shares have reached a 52-week high of ₹1,374 on the NSE.
• Jefferies has maintained its accumulate recommendation on Finolex Cables.
• The brokerage has raised its target price to ₹1,410 from ₹1,200.

FAQs

What is the reason behind Finolex Cables’ strong Q1 results?

Jefferies attributed the strong Q1 results to multiple price hikes in the electricals segment, including C&W, sales, and EBIT growth, which was driven by these price increases over the last 12 months.

What is the target price of Finolex Cables as per Jefferies?

Jefferies has raised its target price to ₹1,410 from ₹1,200.

What is the recommendation of Jefferies on Finolex Cables?

Jefferies has maintained its accumulate recommendation on Finolex Cables.

Conclusion

Finolex Cables’ strong Q1 results and the recommendation from Jefferies to accumulate the stock with a target price of ₹1,410 make it an attractive investment opportunity. Investors should consider this stock for their portfolio, especially with the potential for further growth in the coming quarters.