IIFL Securities Stock Market Watch Today: Buy Finolex Cables - May 22

IIFL Securities recommends buying Finolex Cables stock with a target price of Rs 1375. The current market price of the stock is Rs 1134.95. The brokerage firm believes that the company will benefit from the growing demand for electrical cables and wires in India. Finolex Cables is a leading manufacturer of electrical cables and wires in India. The company has a strong market share in the domestic market and is also expanding its presence in international markets.

About Finolex Cables:

Finolex Cables is a leading manufacturer of electrical and telecommunication cables in India. Listed on the National Stock Exchange (NSE) of India, the company has a market capitalization of over INR 3,000 crores. Finolex Cables offers a wide range of products including power cables, control cables, instrumentation cables, fiber optic cables, and LAN cables. The company has a strong presence in India and exports its products to over 50 countries worldwide. Finolex Cables is known for its high-quality products and excellent customer service, making it a preferred choice for electrical contractors, builders, and industrial customers.

52 Week Price Trend:

Finolex Cables (FINCABLES) is currently trading at Rs 1134.95, which is below its 52-week high of Rs 1219.1 but above its 52-week low of Rs 690.65. The stock has been consolidating within this range for the past few months, with occasional breakouts and pullbacks. Technical indicators suggest that the stock is currently in a neutral trend, with no clear direction in the short term. Investors may consider buying if the stock breaks above Rs 1219.1 with a stop loss below Rs 1100, or selling if it breaks below Rs 690.65 with a stop loss above Rs 750.

Stratzy's MOST Analysis:

FINCABLES' BBB rating under Stratzy's MOST framework indicates a medium level of fundamental risk. This rating is based on an assessment of the company's management, outlook, safety, and trend. The company's management is considered to be effective, and the outlook for the industry is positive. However, the company's financial safety metrics are somewhat weak, and the trend in its earnings is declining. Overall, FINCABLES is considered to be a moderately risky investment.

Company's Fundamentals:

Finolex Cables (NSE: FINCABLES) is a leading manufacturer of electrical cables and conductors in India. Its stock is currently trading at a Price to Earnings (PE) ratio of 26.44, indicating that investors are willing to pay Rs. 26.44 for every rupee of earnings. The Price to Book (PB) ratio of 3.77 suggests that the market value of the company's assets is 3.77 times its book value. This premium valuation may be due to the company's strong market position and growth prospects. Despite the relatively high valuation, Finolex Cables offers a Dividend Yield of 0.72%, providing investors with a modest return on their investment.

Fundamental and Technical information provided in this blog were last updated on 22 May, 2024

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