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FINCABLES - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.7

Last Updated Time : 02 Feb 26, 01:08 pm

Fundamental Rating: 3.7

Stock Code FINCABLES Market Cap 11,045 Cr. Current Price 722 ₹ High / Low 1,060 ₹
Stock P/E 18.4 Book Value 314 ₹ Dividend Yield 1.11 % ROCE 16.2 %
ROE 12.4 % Face Value 2.00 ₹ DMA 50 756 ₹ DMA 200 846 ₹
Chg in FII Hold -0.48 % Chg in DII Hold -0.11 % PAT Qtr 187 Cr. PAT Prev Qtr 139 Cr.
RSI 41.9 MACD -13.0 Volume 99,329 Avg Vol 1Wk 1,78,964
Low price 701 ₹ High price 1,060 ₹ PEG Ratio 1.76 Debt to equity 0.00
52w Index 5.76 % Qtr Profit Var 27.9 % EPS 39.3 ₹ Industry PE 17.9

📊 Core Financials

  • Revenue growth: Strong, PAT at 187 Cr vs 139 Cr in previous quarter, showing 27.9 % improvement.
  • Profit margins: EPS at 39.3 ₹, reflecting healthy profitability.
  • Debt ratios: Excellent, debt-to-equity at 0.00 indicates zero leverage.
  • Cash flows: Supported by consistent profitability and debt-free balance sheet.
  • Return metrics: ROCE 16.2 %, ROE 12.4 % — moderate efficiency and shareholder returns.

💹 Valuation Indicators

  • P/E ratio: 18.4, close to industry average (17.9), fairly valued.
  • P/B ratio: Current Price / Book Value ≈ 2.3, reasonable relative to assets.
  • PEG ratio: 1.76, indicates valuation is slightly stretched relative to growth.
  • Intrinsic value: Fair valuation, supported by profitability and debt-free status.

🏢 Business Model & Competitive Advantage

  • Operates in cables and electrical equipment manufacturing.
  • Strong brand presence in industrial and infrastructure projects.
  • Competitive advantage through scale, product diversification, and debt-free balance sheet.

📈 Entry Zone & Long-Term Guidance

  • Entry zone: Attractive near 700–730 ₹ levels, close to 52-week low support.
  • Long-term holding: Favorable due to strong fundamentals, debt-free structure, and consistent profitability; suitable for investors seeking industrial growth exposure.

Positive

  • Quarterly PAT growth of 27.9 %.
  • EPS at 39.3 ₹ reflects strong earnings.
  • Debt-free balance sheet (Debt-to-equity 0.00).
  • Dividend yield at 1.11 % provides steady income.

Limitation

  • ROE (12.4 %) and ROCE (16.2 %) are moderate compared to industry leaders.
  • PEG ratio at 1.76 indicates valuation stretched relative to growth.
  • Stock trading below DMA 50 and DMA 200, showing weak momentum.

Company Negative News

  • FII holdings decreased (-0.48 %).
  • DII holdings decreased (-0.11 %).
  • Technical indicators weak: RSI at 41.9, MACD negative.

Company Positive News

  • Quarterly PAT improved (187 Cr vs 139 Cr).
  • Strong fundamentals with debt-free balance sheet.
  • Dividend yield supports investor confidence.

Industry

  • Cables and electrical equipment industry supported by infrastructure and power sector growth.
  • Industry PE at 17.9, close to FINCABLES’s P/E, suggesting fair valuation.

Conclusion

  • FINCABLES demonstrates solid fundamentals with strong profitability and zero debt.
  • Valuation is fair compared to industry peers, though growth efficiency is moderate.
  • Entry advisable near lower support levels; long-term holding recommended for investors seeking exposure to infrastructure-driven industrial growth.

Would you like me to also prepare a comparative HTML snapshot against peers like Polycab and KEI Industries to highlight FINCABLES’s relative valuation and strengths?

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