Finolex Cables shares jump 9% to hit 52-week high today amid heavy volumes

Shares of Finolex Cables Ltd jumped in Monday's trade to hit their one-year high level amid heavy volumes. The stock surged 9.20 per cent to touch its 52-week high of Rs 847.60 over a previous close of Rs 776.20. A total of 1.32 lakh shares changed hands today on BSE, which was more than double compared to the two-week average volume of 66,000 shares. Turnover on the counter stood at Rs 10.77 crore, commanding a market capitalisation (m-cap) of Rs 12,570.85 crore. There were 19,213 sell orders on the counter against buy orders of 16,901 shares.

The scrip has gained 48.78 per cent so far this year and 116.43 per cent in the past one year.

The stock was last seen trading higher than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 77.92. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 25.16. The earnings per share (EPS) of the firm came at 30.85, higher than the P/E ratio.

Finolex Cables has an average target price of Rs 722, Trendlyne data showed, suggesting a potential downside of 12.91 per cent. The scrip has a one-year beta of 1.07, indicating high volatility.

In the December 2022 quarter (Q3 FY23), Finolex Cables reported a 42 per cent year-on-year (YoY) growth in profit after tax of Rs 135 crore. Revenues grew 18 per cent YoY at Rs 1,150 crore.

"The distribution push is beginning to contribute into revenue share improvement. On the communication cables segment, most product lines showed volume expansion. The volume of metal-based products improved by 27 per cent during the quarter and optic fiber cable volume grew by over 70 per cent," the company said.

Finolex Cables is the flagship company of the Finolex Group. The company is India's leading manufacturer of electrical and communication cables. It is principally engaged in the manufacturing influence of electrical cables communication cables & other electrical appliances. Besides a wide variety of wires and cables, the company also manufactures lighting products, electrical accessories, switchgear, fans and water heaters. It has manufacturing facilities at Pimpri and Urse in Pune as well as at Goa and Uttarakhand.

Meanwhile, Indian equity benchmarks jumped in early trade, led by gains in technology, metals, banks, financials and energy stocks.

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