Finolex Cables shares rose 5% after global brokerage Jefferies reiterated a Buy rating with a target price of ₹1,235, highlighting the company as a key beneficiary of India’s growing housing and construction activity. As of 9:19 AM, the shares were trading 4.94% higter at Rs 1,006.70
The company reported a better-than-expected Q4 FY25, with revenue rising 14% year-on-year. This growth came on the back of a 12–13% price hike through FY25, followed by a modest increase in late May 2025. Strong pricing power and steady demand supported the positive performance.
Jefferies sees a multi-year growth opportunity in the Optical Fiber Cable (OFC) segment, driven by the government’s BharatNet initiative. In addition, India’s accelerating 5G rollout and expanding data center infrastructure are expected to fuel demand in Finolex’s Communication segment.
The brokerage forecasts a solid 19% CAGR in Profit After Tax (PAT) from FY25 to FY28, backed by operating leverage and volume growth. A 370 basis points expansion in Return on Capital Employed (RoCE) is also projected over the same period.
With a well-diversified product portfolio, consistent earnings, and tailwinds from infrastructure and digital connectivity investments, Finolex Cables remains well-positioned for long-term growth.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
