Finolex Cables shares hit 52-week high, Jefferies sees further upside on growth prospects

Shares of Finolex Cables Ltd. gained nearly 6% to hit their 52-week high on Wednesday, September 9.

Brokerage firm Jefferies has maintained its "buy" rating on the stock and has a target price of ₹1,410 per share. This indicates an upside of 8.3% from its previous closing price.

The brokerage said that despite the stock's 60% rally in 2026 so far, its one-year forward price-to-earnings ratio is at 21x, which is notably below its peers.



According to Jefferies, the communication cables business, which is 75% of the entire Optic Fibre Cables business, contributed to Finolex Cables' margin improvement, which now stand at 23% of the June quarter EBIT.

Finolex Cables targets to double its fiber draw capacity to 8 million km by the December 2026 quarter, adding that assuming a fiber price of $11 per km, this capacity can generate sales between ₹200 crore to ₹250 crore per quarter, which is estimated to be around 11% of the total sales in financial year 2028, Jefferies wrote in its note.

Electricals, which makes up 85% of Finolex Cables' sales, stays the mainstay business and Solar, extra high voltage (EHV) are new drivers, Jefferies said.

It added that fast moving electric goods (FMEG) EBIT stays positive and the company's EBITDA will grow at a Compounded Annual Growth Rate (CAGR) of 22% over financial year 2026-2029, Jefferies projected.

Of the seven analysts who have coverage on Finolex Cables, six have a "buy" rating and one has a "sell" rating.

Shares of Finolex Cables are trading 4.6% higher on Wednesday at ₹1,361.8. The stock has risen 29% over the last one month, and also made a 52-week high of ₹1,376 in today's session.

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