Shares of Finolex Cables soared to unprecedented levels in early trading today following a robust performance in the fourth quarter. The company reported a notable 6.3{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b} increase in Q4 profit, with net profit surging to Rs 186.1 crore compared to Rs 175 crore in the same quarter of FY23. Revenue also saw a significant uptick, climbing to Rs 1401 crore, marking a 14.4{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b} increase from the corresponding period last fiscal year.
Moreover, EBITDA exhibited substantial growth, rising by 11.2{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b} to Rs 162 crore in Q4, compared to Rs 145.7 crore in Q4 FY23. The EBITDA margin for the quarter stood at 11.6{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b}, slightly down from 11.9{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b} in the corresponding period last fiscal year. EBITDA, an acronym for earnings before interest, tax, depreciation, and amortization, is a key financial metric indicating operational profitability.
In a move reflecting the company’s confidence in its performance, the board recommended a dividend of Rs 8 per equity share of Rs 2 each fully paid up (400{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b}) for the financial year ending March 31, 2024. This recommendation is subject to the approval of shareholders at the upcoming annual general meeting.
Finolex Cables stock opened higher at Rs 1165 on the Bombay Stock Exchange (BSE) and surged by an impressive 18.97{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b} to reach a record high of Rs 1361.95. The market capitalization of the company soared to Rs 20,398 crore on BSE, cementing its position as a multibagger stock.
Notably, Finolex Cables emerged as the top gainer on BSE for the day, with a total of 2.95 lakh shares traded, amounting to a turnover of Rs 37.99 lakh in Friday’s session.
The stock has delivered remarkable returns over the past few years, with a staggering 266{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b} increase in the last two years alone. Over three and five years, the stock has recorded gains of 232{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b} and 197{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b}, respectively.
From a technical standpoint, the relative strength index (RSI) of Finolex Cables stands at 70.8, indicating that it is currently trading in the overbought zone. Furthermore, the stock is trading above its 20-day, 50-day, 100-day, and 200-day moving averages but below its 5-day and 10-day moving averages.
Finolex Cables achieved its 52-week high of Rs 1361.95 on May 24, 2024, representing a significant milestone in its trajectory. However, it also experienced a low of Rs 772.30 on June 6, 2023, highlighting the fluctuations in its performance over time.
Closing at Rs 1,144.75 on Thursday, the stock experienced a marginal decline of Rs 15.35, or 1.32{e576653dfa42e7ed55958086470380e0158fb4bb779b4a72dd274eee05b9584b}, on BSE.
Finolex Cables specializes in the manufacturing of electrical cables, communication cables, and other electrical appliances, positioning itself as a key player in the industry.
