Finolex Cables shares gained 3.4% to hit a new 52-week high of ₹1,398.55 on Thursday, extending their winning streak to four consecutive trading days with a 15% surge over the past four days. The stock has doubled or zoomed 100% from its February 2026 low of ₹701, demonstrating exceptional momentum despite broader market volatility. According to Business Standard, the stock was trading 3% higher at ₹1,392.15 at 1:11 PM, outperforming the BSE Sensex which rose only 0.04%. A combined 1.8 million equity shares changed hands on the NSE and BSE, reflecting strong investor interest.
Jefferies has issued 'Buy' ratings on three Indian companies with significant upside potential. According to reports from The Financial Express, the brokerage has set target prices indicating upside of up to 34% across the three recommendations. The brokerage sees company-specific opportunities across cables and wires, energy infrastructure, ports and logistics, with capacity additions and demand growth forming the main basis for its positive views.
Jefferies has issued a 'Buy' rating on Finolex Cables with a target price of ₹1,410, indicating a 15% upside. The brokerage expects the company to benefit from its communication business, where optical fibre forms around 75% of the segment. According to Business Standard, given the strong demand from data centre and AI-led applications, management is now moving with urgency to commission Phase 2 of expansion, an investment of approximately ₹100 crore that will take perform capacity to nearly 8 million kilometres of fibre. The communication cables business has contributed to margin improvement, with margins now standing at 23% of the June quarter EBIT. Electricals, which makes up 85% of Finolex Cables' sales, remains the mainstay business, while Solar and extra high voltage (EHV) are new drivers. The company's fast moving electric goods (FMEG) EBIT stays positive, and Jefferies projects EBITDA will grow at a Compounded Annual Growth Rate (CAGR) of 22% over financial year 2026-2029.
According to Business Standard, despite the stock's 60% rally year to date, Finolex Cables' one-year forward price-to-earnings ratio is at 21x, which is notably below its peers. Of the seven analysts who have coverage on Finolex Cables, six have a 'buy' rating and one has a 'sell' rating, indicating strong analyst confidence. The stock's performance reflects investor optimism about the company's capacity expansion plans and growth prospects in the optical fiber segment.
The India wires and cables market size was valued at $9.32 billion in 2024 and is projected to grow from $10.01 billion in 2025 to $17.08 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.94% during the forecast period. According to Business Standard, India has observed substantial rise in demand due to the country's ambitious renewable energy goals, with the Indian government's target of 100 GW of installed solar capacity by 2022 creating considerable demand for solar cables. Considering this target, India's solar cable requirement alone is more than 5 million kilometers. The company's FY26 annual report highlights continued investments under the Revamped Distribution Sector Scheme (RDSS), expansion of renewable energy infrastructure, BharatNet, fibre-to-the-home deployment, 5G rollout, electric vehicle adoption and accelerating build-out of data centres and AI infrastructure as creating favourable long-term demand across their businesses.
