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Finolex Cables Stock Plummets 15% Despite Strong Financial Results

Shares of Finolex Cables have fallen sharply by over 15% in the past month, underperforming across multiple short-term time frames. This decline is puzzling as it contrasts with the company's strong quarterly financial performance, which included 35% year-on-year revenue growth. The company maintains a robust balance sheet with negligible debt and significant liquid investments. However, the stock trades at a significant valuation discount compared to its industry peers like Polycab and KEI Industries.

Key Points: Finolex Cables Shares Fall 15% in One Month

  • Stock down 15% in one month
  • Strong revenue growth of 35% YoY
  • Debt-free with strong liquid investments
  • Trading at a discount to peer valuations
  • Long-term 5-year return near 100%
2 min read

Finolex Cables stock tanks over 15 pc in a month

Finolex Cables stock drops over 15% in a month despite robust revenue growth and a strong debt-free balance sheet, trading at a discount to peers.

"The recent decline comes despite robust financial performance by the company. - Report"

Mumbai, March 31

Shares of Finolex Cables Limited have fallen sharply by 15.14 per cent in the last one month, even as the company reported one of its strongest financial performances in recent times.

However, the stock has been under pressure across multiple time frames. In the past week alone, the shares declined by Rs 33.10, or 4.09 per cent, while in the last two weeks, the fall widened to Rs 69.05, or 8.17 per cent.

Over a one-month period, the stock has dropped Rs 138.45, translating into a 15.14 per cent decline.

On a year-to-date (YTD) basis, the fall remains relatively limited at 1.34 per cent, but the broader trend shows weakness.

Over the last six months, the stock has slipped 5.13 per cent, and in the past one year, it has delivered a negative return of 15.14 per cent.

The longer-term performance also remains subdued, with the stock down 22.48 per cent over two years and 4.19 per cent over three years.

However, not all trends are negative. In the last three months, the stock has shown some recovery, gaining 6.06 per cent.

Over a five-year period, it has nearly doubled investors' money with a return of 99.22 per cent.

The recent decline comes despite robust financial performance by the company. The company reported revenue of Rs 1,599 crore for the latest quarter, marking a strong 35 per cent year-on-year growth.

Volume growth in its core wires and cables segment stood at 26 per cent.

The company's balance sheet remains a key strength. It has an equity base of Rs 5,700 crore, negligible debt, and liquid investments worth Rs 2,713 crore as of November 2025.

This strong financial position provides stability and flexibility for future expansion.

Despite these positives, the stock is currently trading at around 18 times earnings, which is significantly lower than peers like Polycab India Limited and KEI Industries Limited, which command valuations of around 40 times and 45 times respectively.

Founded in 1958 and headquartered in Pune, Finolex Cables Limited is one of India's leading manufacturers of electrical and telecommunication cables.

The company has also diversified into fast-moving electrical goods such as fans, water heaters, switches and LED lighting, while operating manufacturing facilities across Pimpri, Urse, Goa and Roorkee.

- IANS

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Reader Comments

S
Shreya B
Very confusing! The company is doing so well financially, but the share price is going down. Maybe there's something we retail investors don't know? Or is it just general market sentiment pulling down good stocks? 🤔
A
Aman W
PE of 18 vs 40-45 for peers is a huge discount. Either Finolex is massively undervalued, or the market thinks its growth story is over compared to Polycab and KEI. Their diversification into fans and switches hasn't excited the market like Polycab's wires business.
P
Priya S
My father has held this stock for years and always said it's a solid "chakachak" company. It's painful to see such a decline when fundamentals are strong. Hope it recovers soon. The cash on books (₹2700+ crore!) is very reassuring.
M
Michael C
From an investment perspective, this divergence between price and performance creates an interesting value proposition. The negligible debt and high liquidity provide a strong margin of safety. Might be time to average down.
K
Karthik V
Respectfully, I think the market is right to be cautious. Yes, the numbers look good, but where is the future growth coming from? The cable market is competitive, and their FMEG segment (fans, lights) is crowded with strong players like Havells and Crompton. The stock reaction might be pricing in slower growth ahead.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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