Finolex Cables Limited (FINCABLES) AI Stock Analysis

• Market Cap: ₹134.56B
• Dividend Yield: 1.04%
• Average Volume (3M): 12.88K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.37
• Revenue Growth: 7.42%
• EPS Growth: -4.96%
• Country: IN
• Employees: 1,576
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Electrical Equipment & Parts
• EPS (TTM): 8.90
• Shares Outstanding: 152,939,350
• 10 Day Avg. Volume: 14,706
• 30 Day Avg. Volume: 12,882
• PEG Ratio: 2.57
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 2.55
• P/FCF Ratio: -464.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 43.15
• Revenue Forecast (FY): ₹62.10B

• Rating: 66 Neutral
• Price Target: ₹950.00 ▲(21.16% Upside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

Finolex Cables Limited shows strong financial performance with robust revenue growth and a stable balance sheet, which are significant strengths. However, the technical analysis indicates bearish momentum, which is a major concern. The valuation is fair, but not compelling enough to offset the technical weaknesses. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Sustained ~16% revenue growth indicates durable demand for cables across residential, commercial and infrastructure sectors. Over 2-6 months this supports scale benefits, stronger distributor relationships and increased pricing power versus peers, underpinning long-term top-line resilience.

Strong Balance Sheet

Conservative leverage and a high equity ratio provide financial flexibility to fund capex, absorb commodity cycles and pursue strategic investments without strain. Strong cash reserves reduce refinancing risk and support dividends or opportunistic M&A over a multi-quarter horizon.

Margin Sustainability

Consistently healthy gross, net and operating margins reflect effective cost controls, product mix and pricing. Durable margin structure allows the company to maintain profitability through commodity swings and supports reinvestment capability and shareholder returns over coming quarters.

Negative Factors

Free Cash Flow Volatility

Declining free cash flow driven by higher capex weakens cash conversion despite profitable operations. Persistently volatile FCF can constrain funding for dividends, debt reduction or new investments and raises execution risk if capex cycles continue into future periods.

Declining EBIT

A drop in EBIT signals emerging operational pressure that could erode operating leverage if not addressed. If structural (input costs, mix shifts or SG&A creep) this trend may compress margins and reduce internal cash generation over multiple quarters.

Commodity Input Exposure

High sensitivity to copper and aluminium prices makes margins vulnerable to volatile commodity cycles. Without durable hedging or pass-through pricing, sustained metal price inflation can depress profitability and require frequent price adjustments that pressure volume or customer relations.

Finolex Cables Limited Business Overview & Revenue Model

Company Description

Finolex Cables Limited manufactures and sells electrical and communication cables, and other electrical appliances in India. The company operates through Electrical Cables, Communication Cables, Copper Rods, and Others segments. It offers electrical cables, such as 1100V and motor winding PVC insulated, automotive/battery, UPS, elevator, and solar cables, as well as heavy duty, underground, low and high voltage, power, and control cables; and communication cables, including optic fiber, coaxial, local area network, CCTV, speaker, jelly filled telephone, PE insulated telephone, and V-SAT cables. The company also provides copper rods; electrical switches, sockets, regulators, etc.; and retrofit and non-retrofit CFL lamps, T5 tube lights, and fittings, as well as LED based lighting solutions. In addition, it offers ceiling, table, wall, pedestal, and exhaust fans; switchgear products, such as miniature and residual current circuit breakers, molded case circuit breakers, and distribution boards; conduit pipes and fittings; and water heaters. Further, the company offers its products through online retail stores. It also exports its products to the United States and the United Arab Emirates. Finolex Cables Limited was founded in 1958 and is based in Pune, India.

How the Company Makes Money

Finolex Cables makes money primarily by manufacturing and selling cables and wires. Its core revenue stream comes from electrical wires and cables sold for residential, commercial, industrial, and infrastructure applications (e.g., house wiring, power distribution, control and instrumentation uses). A second key revenue stream comes from communication cables used in telecom and data connectivity applications. The company generates sales through a mix of distribution-led retail channels (selling branded products via dealers/distributors to electricians, contractors, and end consumers) and business-to-business/order-based sales to institutional customers such as utilities, industrial firms, and project contractors. Earnings are influenced by product mix (higher-value or specialized cables typically carry different margins), volume growth driven by construction/infrastructure spending, and input-cost dynamics (notably metal commodities such as copper and aluminum) that affect pricing and gross margins. Specific partnership or customer concentration details are null.

Finolex Cables Limited Financial Statement Overview

Summary

Finolex Cables Limited demonstrates strong financial health with consistent revenue and profit growth, solid margins, and a stable balance sheet. The company's prudent debt management and robust equity position are commendable. However, challenges in maintaining consistent free cash flow highlight areas for strategic focus in capital allocation and operational efficiency.

Income Statement

Finolex Cables Limited shows a robust revenue growth trend, with a significant increase from 2021 to 2025. The Gross Profit Margin and Net Profit Margin have remained strong, indicating effective cost management and profitability. The EBIT and EBITDA margins are healthy, reflecting efficient operational performance. However, a slight decline in EBIT from 2024 to 2025 suggests potential areas for operational improvement.

Balance Sheet

The company maintains a strong Balance Sheet with a low Debt-to-Equity Ratio, indicating conservative leverage practices. The Return on Equity is impressive, showing effective utilization of shareholder funds. The Equity Ratio is also high, suggesting financial stability and strong asset base. The company’s increasing cash reserves further enhance its financial position.

Cash Flow

Cash flow from operations has been positive, though there is volatility in Free Cash Flow, notably a decline in 2025 due to increased capital expenditures. The Operating Cash Flow to Net Income Ratio is stable, but the Free Cash Flow to Net Income Ratio has decreased, highlighting potential challenges in converting profits into free cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	55.48B	53.19B	50.14B	44.81B	37.68B	27.68B
Gross Profit	10.91B	10.16B	10.57B	9.24B	7.90B	7.11B
EBITDA	6.58B	5.35B	5.84B	5.02B	4.24B	3.80B
Net Income	6.64B	7.01B	6.52B	5.04B	5.99B	4.61B
Balance Sheet
Total Assets	66.57B	62.87B	56.35B	49.80B	44.94B	38.86B
Cash, Cash Equivalents and Short-Term Investments	28.59B	27.83B	26.78B	21.55B	17.83B	12.60B
Total Debt	215.20M	199.90M	180.60M	138.90M	91.00M	70.10M
Total Liabilities	9.54B	7.91B	6.89B	6.10B	5.72B	4.71B
Stockholders Equity	57.03B	54.95B	49.46B	43.70B	39.22B	34.15B
Cash Flow
Free Cash Flow	318.10M	-291.80M	3.58B	3.25B	4.06B	594.60M
Operating Cash Flow	1.42B	2.07B	5.77B	3.56B	4.73B	1.14B
Investing Cash Flow	-1.80B	-820.90M	-4.40B	-2.25B	-3.78B	-8.59B
Financing Cash Flow	-33.30M	-1.28B	-1.12B	-966.50M	-869.20M	-863.30M

Finolex Cables Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 784.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:FINCABLES, the sentiment is Positive. The current price of 784.1 is below the 20-day moving average (MA) of 880.13, below the 50-day MA of 811.23, and below the 200-day MA of 834.93, indicating a neutral trend. The MACD of 15.62 indicates Positive momentum. The RSI at 53.58 is Neutral, neither overbought nor oversold. The STOCH value of 21.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:FINCABLES.

Finolex Cables Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JINDALSAW	69 Neutral	₹124.00B	10.37	―	1.18%	-13.69%	-30.57%
MAHSEAMLES	68 Neutral	₹75.79B	7.74	―	1.82%	0.81%	-7.11%
PCBL	68 Neutral	₹97.70B	1,460.95	―	1.94%	6.12%	-30.31%
FINCABLES	66 Neutral	₹134.56B	17.47	―	1.04%	7.42%	-4.96%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FINPIPE	61 Neutral	₹108.27B	23.17	―	1.19%	-3.53%	-40.09%
PRINCEPIPE	51 Neutral	₹26.53B	-310.89	―	0.20%	-4.37%	-82.37%