🔌 Finolex Cables Share Analysis 2025: Financials, Technical Trends, SWOT & Investment Outlook
🏢 Company Overview
Finolex Cables Ltd. is India’s largest and most trusted manufacturer of electrical and communication cables. With a legacy of over 60 years, it serves industrial, commercial, and residential markets with a broad portfolio including wires, fiber optics, and electrical accessories.
1. 📊 Fundamental Analysis of Finolex Cables
| Metric | FY 2024-25 (Estimated) |
|---|---|
| Revenue | ₹4,812 Crore |
| Net Profit | ₹600 Crore |
| Earnings Per Share (EPS) | ₹39.3 |
| Price to Earnings Ratio (P/E) | 22.4x |
| Dividend Yield | 1.10% |
| Return on Equity (ROE) | 15.5% |
| Debt to Equity Ratio | 0.00 (Debt-free) |
| Market Cap | ₹12,500 Crore+ |
✔️ Debt-free with strong margins and a solid distribution network makes Finolex a fundamentally sound pick.
2. 📉 Technical Analysis of Finolex Cables
📈 Price Overview (Last 1 Year)
- 52-Week High: ₹1,140
- 52-Week Low: ₹760
- Current Price: ₹1,035 (as of June 2025)
📌 Key Technical Indicators
| Indicator | Value | Interpretation |
|---|---|---|
| 20-Day Moving Avg | ₹1,012 | Momentum support |
| 50-Day Moving Avg | ₹998 | Sustained uptrend |
| RSI (14-day) | 61 | Bullish to Neutral |
| MACD | Positive | Upward trend continuation |
| Support Levels | ₹980, ₹920 | Strong price floor |
| Resistance Levels | ₹1,080, ₹1,140 | Key breakout levels |
💡 Momentum remains positive, with near-term bullish sentiment.
3. 🧩 SWOT Analysis of Finolex Cables
| 💪 Strengths | ⚠️ Weaknesses |
|---|---|
| Debt-free company with strong cash flow | Low dividend yield |
| Leading brand in wires and cables | Limited presence in export markets |
| Wide dealer and retail network | High dependency on real estate demand |
| 🚀 Opportunities | 🔥 Threats |
|---|---|
| Government push for electrification & smart infra | Rising raw material costs (copper, PVC) |
| Growing demand for FTTx & broadband infrastructure | Competitive pricing pressures |
| Entry into consumer appliances | Substitute cable technologies |
4. 🌍 Macro and Microeconomic Analysis
🔺 Macroeconomic Factors
- Interest Rates: Steady at 6.5%, supporting infrastructure investments.
- Inflation: Moderated around 5%, maintaining real estate affordability.
- GDP Growth: India projected to grow at 7.2%, favoring infra and power demand.
🔻 Microeconomic Factors
- Urbanization & Electrification: Boost demand for electrical infrastructure.
- Housing Trends: New housing and renovation drive cable volumes.
- Make-in-India Push: Enhances domestic demand for reliable cabling solutions.
📌 Favorable macro tailwinds combined with brand loyalty support Finolex’s leadership.
5. 🔍 Peer Comparison
| Company | Revenue (₹ Cr.) | EPS (₹) | P/E Ratio | ROE (%) | Dividend Yield |
|---|---|---|---|---|---|
| Finolex Cables | 4,812 | 39.3 | 22.4x | 15.5% | 1.10% |
| Polycab India | 17,000+ | 65.7 | 38.6x | 23.8% | 0.70% |
| KEI Industries | 7,960 | 64.2 | 34.1x | 21.5% | 0.85% |
| RR Kabel | 6,400+ | 49.1 | 41.3x | 18.4% | 0.60% |
📊 Finolex is a value pick with strong ROE and a better valuation than some overvalued peers.
6. 🧾 Broker Recommendations
| Broker | Rating | Remarks |
|---|---|---|
| Axis Securities | ⭐⭐⭐⭐ Buy | Good visibility with retail-led growth |
| ICICI Direct | ⭐⭐⭐ Hold | Wait for breakout; valuation fair |
| Kotak Securities | ⭐⭐⭐⭐ Buy | Clean balance sheet and expansion in FMEG |
💬 Broker sentiment is moderately positive, with a focus on long-term gains.
7. ✅ Conclusion: Is Finolex Cables a Good Investment?
Finolex Cables offers an attractive investment proposition based on:
- Strong market positioning in domestic cabling.
- Zero debt, high return ratios, and stable margins.
- Growing relevance in broadband and smart home wiring.
📌 Investment Verdict: ⭐⭐⭐⭐ (4.3/5)
Suitable for: Long-term investors seeking stable mid-cap growth with industry leadership.
📢 Disclaimer
The information provided in this blog is intended solely for educational and informational purposes. It does not constitute financial advice, stock recommendations, or an offer to buy or sell any securities. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. Please note that stock prices, financial data, and company information mentioned in this article are subject to change on trading days. For the most recent and accurate updates, kindly refer to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) official websites. Incorporating images can effectively use internal links to enhance user engagement and navigatio
