Finolex Cables Shares At Record High As SBI Securities Initiates Coverage With 'Buy'
The brokerage has set a price target of Rs 1,086 apiece on the company's stock price.
Shares of Finolex Cables Ltd. hit an all-time high on Wednesday after SBI Securities initiated coverage with a 'buy', citing stellar operating performance in fiscal 2023.
Adding to this, the brokerage expects volume to pick up as restocking intensifies following capacity expansion. The price target on the company's stock has been set at Rs 1,086 per share, implying a potential upside of 15% in the next 12 months.
SBI Securities On Finolex Cables
Initiates coverage with 'buy' rating and a price target of Rs 1,086 per share, implying a potential upside of 15%.
Deep industry experience with a wide product range.
Integrated business model with solid infrastructure.
Entered into the fast-moving electrical goods business.
Expanding capacity. Volume will pick up as restocking intensifies.
Stellar operating performance in the financial year 2023.
Key risk factors include volatile prices of raw materials and competition from unorganised players.
Shares of Finolex Cables surged 9.28% intra-day to hit a record high of Rs 979.9 apiece. The shares were trading 6.32% higher at Rs 953.40 apiece as of 1.52 pm, compared to a 0.18% advance in the NSE Nifty 50. The stock has risen nearly 77.33% year-to-date.
The total traded volume stood at 10.4 times its 30-day average. The relative strength index was at 73, implying that the stock maybe overbought.
Out of the nine analysts tracking the company, six maintain a 'buy' rating on the stock, two recommend a 'hold' and one suggests a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 5.9%.
