Fundamental Analysis

FINOLEX CABLES 

Ticker : 500144
BUY : Rs 407.60
Target : Rs 450

Finolex Cables is in the business of manufacturing electrical & communication cables and copper rods. On a consolidated quarterly front, the company reported net sales of Rs 830.23 crore for Q3FY21, which is an increase of 18.21 per cent from its net sales of Rs 702.36 crore reported for Q3FY20. The operating profit rose by 1.15 per cent to Rs 127.86 crore in Q3FY21 from Rs 126.41 crore posted in Q3FY20. The company registered declined net profit of Rs 64.04 crore in Q3FY21 as compared to the net profit of Rs 83.29 crore in Q3FY20. The latest Union Budget 2021 has directly benefitted various segments of Finolex Cables. All segments saw a gradual improvement in financial numbers with the resumption of economic activities. Due to predicted growth in infrastructure activities, the wire & cable industry in India is capable of having strong growth prospects, going forward. Hence, we recommend BUY.