Finolex Cables , a prominent player in the Indian cable manufacturing industry, saw its stock price surge by more than 5% following a bullish outlook from global investment bank Jefferies. The stock's upward movement came on the heels of the company's impressive fourth-quarter results, which exceeded market expectations.

Strong Q4 Performance

Finolex Cables reported a robust 14.00% year-on-year growth in sales for the fourth quarter, outperforming analyst estimates. This strong performance underscores the company's resilience and ability to capitalize on market opportunities despite challenging economic conditions.

Jefferies Maintains 'Buy' Rating

Impressed by Finolex Cables' financial results, Jefferies has maintained its 'buy' rating on the stock. The investment bank's positive stance is based on several factors:

1. Growth Prospects: Jefferies anticipates significant growth opportunities for Finolex Cables, particularly from the ongoing 5G rollout in India and the expanding data center market.

2. Projected Earnings Growth: The investment bank forecasts a robust 19.00% Profit After Tax (PAT) Compound Annual Growth Rate (CAGR) for Finolex Cables over the fiscal years 2025 to 2028.

3. Improved Profitability: Jefferies projects a substantial 370 basis points expansion in Return on Capital Employed (ROCE) for the company, indicating enhanced operational efficiency and profitability.

Future Outlook

The positive assessment from Jefferies, coupled with Finolex Cables' strong quarterly performance, suggests a promising outlook for the company. The anticipated growth from the 5G rollout and data center expansion aligns well with Finolex Cables' core competencies in the cable manufacturing sector .

Investors and market watchers will likely keep a close eye on Finolex Cables' future quarterly results and its ability to capitalize on the expected growth in the telecom and data center infrastructure segments. The company's performance in these areas could be crucial in determining its long-term growth trajectory and stock performance.

As always, investors are advised to conduct their own research and consider their risk appetite before making investment decisions based on analyst ratings or market movements.

Finolex Cables , a leading manufacturer of electrical and telecommunication cables, has released its fourth quarter financial results, showcasing growth in revenue and profit. The company has also declared a dividend for its shareholders.

Financial Performance

Finolex Cables reported a strong performance in the fourth quarter:

• Revenue climbed to ₹1,594.60 crore, up 13.8% year-over-year.
• Net profit reached ₹191.70 crore, a 3% increase from the same period last year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 5.5% compared to the previous year.
• EBITDA margin experienced a slight decrease year-over-year.

Operational Highlights

A key driver of growth for Finolex Cables was its optical fibre cables segment, which saw a substantial 30% volume growth. This indicates strong demand in the telecommunications sector and positions the company well in this growing market.

Dividend Announcement

Finolex Cables has declared a dividend of ₹8 per share. This announcement comes as good news for the company's shareholders, providing them with a return on their investment.

Financial Results Overview

Analysis

The financial results indicate that Finolex Cables has managed to grow its revenue and maintain profitability. The increase in revenue and net profit suggests that the company has been able to capitalize on market opportunities and manage its operations effectively.

While the EBITDA margin saw a slight decline, the overall growth in EBITDA indicates that the company has been able to manage its operational costs while expanding its business. The significant growth in the optical fibre cables segment is particularly noteworthy, highlighting the company's strong position in this high-demand area.

The dividend declaration of ₹8 per share further underscores the company's commitment to delivering value to its shareholders.

As Finolex Cables continues to navigate the dynamic electrical and telecommunication cable market, investors and industry observers will be keen to see how the company builds on this quarter's performance in the future, particularly in its fast-growing optical fibre segment.