Finolex Cables Ltd – Detailed Technical and Fundamental Analysis Report
Technical Analysis
The daily chart shows Finolex Cables trading near ₹2118, rebounding from recent support at around ₹2060.
Moving averages (20, 50, 100-day) are converging, with the price recently breaking above the 20-day moving average, indicating early bullish momentum.
Parabolic SAR dots indicate a recent bullish flip, supporting an upside move.
RSI is rising at 56.88, not yet overbought, suggesting room for further gains.
MACD histogram is positive with increasing momentum bars, signaling potential for an upward trend continuation.
Key resistance lies in the ₹2150-2180 zone while support is near ₹2060.
Fundamental Analysis
Finolex Cables is a leading manufacturer in the Indian cable and wire industry, generating major revenue from power cables (low & high voltage), telecom cables, and optical fiber cables.
Its diversified customer base spans infrastructure, power, telecommunications, and industrial sectors.
The company enjoys a strong brand presence and is investing in expanding manufacturing capacity to capture growing demand in energy infrastructure and telecom sectors.
Financially, Finolex Cables has moderate valuations with a P/E ratio around 19-20 and strong return ratios (ROCE 15.6%), supported by consistent EBITDA margin expansion recently.
News, Events & Impact
Finolex Cables is scheduled to announce its Q2 FY26 result on 11th November 2025.
Expectations are for steady revenue growth (~3-5% QoQ), strong EBITDA margin improvement, and healthy net profit growth driven by operational efficiencies and favorable raw material sourcing.
Positive result could fuel further bullish sentiment and breakout above resistance levels.
Sector tailwinds: Increasing capex in renewable energy and telecom infrastructure are long-term growth drivers.
Negative Factors: Raw material cost fluctuations (copper, aluminum), energy prices, and global supply chain disruptions may impact margins.
Positive Points for the Stock
Strong market leadership in cable manufacturing.
Robust balance sheet and improving profitability.
Favorable industry outlook driven by infrastructure and telecom investments.
Operational efficiencies improving margins.
Moderate valuation relative to growth prospects.
Negative Points
Commodity prices and currency volatility risks.
Competition from unorganized players in regional markets.
Dependency on capital-intensive sectors that may slow down capex.
Global supply chain disruptions, if prolonged, can hurt delivery timelines.
Disclaimer & Disclosure
This report is for informational purposes only and does not constitute financial or investment advice. Investors should perform their own due diligence and consult certified financial advisors before making investment decisions. Market investments carry inherent risks and past performance does not guarantee future results. Unauthorized redistribution is prohibited.
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