Finolex Cables Limited (FINCABLES) AI Stock Analysis

• Market Cap: ₹117.85B
• Dividend Yield: 1.04%
• Average Volume (3M): 12.88K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.35
• 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): 12.20
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹807.00 ▲(2.92% Upside)

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

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and resilience against economic downturns.

Profit Margins

Sustained profit margins reflect efficient operations and cost control, contributing to robust profitability and competitive positioning in the market.

Negative Factors

Free Cash Flow Volatility

Volatile free cash flow can hinder strategic investments and operational flexibility, posing challenges in maintaining consistent financial performance.

Earnings Decline

Declining EBIT may indicate operational inefficiencies or market pressures, potentially affecting future profitability and necessitating strategic adjustments.

EPS Growth Decline

A decline in EPS growth suggests challenges in profit generation, which could impact investor confidence and the company's ability to fund growth initiatives.

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 Limited generates revenue primarily through the sale of its diverse range of cables and related products. The company has multiple revenue streams, including the production of low, medium, and high voltage power cables, as well as various types of communication cables. Additionally, FINCABLES benefits from its established distribution network and strong brand presence, allowing it to reach a wide customer base across India. Strategic partnerships with suppliers and distributors enhance its product availability and market penetration. The company's focus on research and development also enables it to innovate and introduce new products, further driving sales and contributing to its overall earnings.

Finolex Cables Limited Financial Statement Overview

Summary

Finolex Cables Limited demonstrates strong financial health with robust revenue growth, solid profit 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	54.84B	53.19B	50.14B	44.81B	37.68B	27.68B
Gross Profit	10.43B	10.16B	10.57B	9.24B	7.90B	7.11B
EBITDA	5.43B	5.35B	5.84B	5.02B	4.24B	3.80B
Net Income	6.19B	7.01B	6.52B	5.04B	5.99B	4.61B
Balance Sheet
Total Assets	0.00	62.87B	56.35B	49.80B	44.94B	38.86B
Cash, Cash Equivalents and Short-Term Investments	27.83B	27.83B	26.78B	21.55B	17.83B	12.60B
Total Debt	0.00	199.90M	180.60M	138.90M	91.00M	70.10M
Total Liabilities	-54.95B	7.91B	6.89B	6.10B	5.72B	4.71B
Stockholders Equity	54.95B	54.95B	49.46B	43.70B	39.22B	34.15B
Cash Flow
Free Cash Flow	0.00	-291.80M	3.58B	3.25B	4.06B	594.60M
Operating Cash Flow	0.00	2.07B	5.77B	3.56B	4.73B	1.14B
Investing Cash Flow	0.00	-820.90M	-4.40B	-2.25B	-3.78B	-8.59B
Financing Cash Flow	0.00	-1.28B	-1.12B	-966.50M	-869.20M	-863.30M

Finolex Cables Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 784.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 784.1 is above the 20-day moving average (MA) of 769.32, above the 50-day MA of 765.89, and below the 200-day MA of 857.70, indicating a neutral trend. The MACD of 4.06 indicates Negative momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 76.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	68 Neutral	₹103.15B	7.48	―	1.18%	-13.69%	-30.57%
MAHSEAMLES	68 Neutral	₹71.68B	9.15	―	1.82%	0.81%	-7.11%
FINCABLES	66 Neutral	₹117.85B	17.74	―	1.04%	7.42%	-4.96%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FINPIPE	61 Neutral	₹107.96B	22.40	―	1.19%	-3.53%	-40.09%
PCBL	60 Neutral	₹112.20B	30.86	―	1.94%	6.12%	-30.31%
PRINCEPIPE	51 Neutral	₹26.84B	115.67	―	0.20%	-4.37%	-82.37%

Finolex Cables Limited Corporate Events

Finolex Cables Issues Corporate Guarantee for Joint Venture

Finolex Cables Limited has disclosed that it has provided a corporate guarantee in favor of ICICI Bank Limited on behalf of its joint venture company, Finolex J Power Systems Limited (FJPS), to avail working capital facilities. The guarantee, amounting to Rs. 39.2 crores, is part of a larger Rs. 80 crore facility, with Finolex and its partner Sumitomo Electric Industries Limited sharing the guarantee in proportion to their shareholdings. This move reflects Finolex’s strategic involvement in supporting its joint venture operations, potentially enhancing its market positioning and operational capabilities.

Finolex Cables Announces Resignation of Compliance Officer

Finolex Cables Limited has announced the resignation of Mrs. Gayatri Kulkarni from her role as Assistant Company Secretary and Compliance Officer due to personal reasons. Her resignation was accepted on November 13, 2025, and she was officially relieved from her duties on December 12, 2025. This change in key managerial personnel may impact the company’s compliance operations, requiring adjustments to maintain regulatory adherence.

Finolex Cables Releases Q2 Financial Results Transcript

Finolex Cables Limited announced the release of the transcript from their Analyst/Investor Meet held on November 14, 2025, where they discussed the company’s financial results for the quarter ending September 30, 2025. This meeting is part of their compliance with SEBI regulations, aiming to maintain transparency with stakeholders. The transcript is available on the company’s website, reflecting Finolex’s commitment to open communication with investors and analysts.

Finolex Cables Releases Analyst Meet Recordings for Q3 2025

Finolex Cables Limited announced the availability of the audio/video recordings from its Analyst/Investor Meet held on November 14, 2025. This meeting covered the company’s earnings for the quarter ending September 30, 2025, and the recordings are accessible on the company’s website. This transparency initiative is likely to enhance stakeholder engagement and provide insights into the company’s financial performance.