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FINCABLES - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.8

Last Updated Time : 25 May 26, 12:02 am

Fundamental Rating: 3.8

Stock Code FINCABLES Market Cap 15,822 Cr. Current Price 1,035 ₹ High / Low 1,173 ₹
Stock P/E 25.8 Book Value 314 ₹ Dividend Yield 0.78 % ROCE 16.2 %
ROE 12.4 % Face Value 2.00 ₹ DMA 50 962 ₹ DMA 200 885 ₹
Chg in FII Hold 0.20 % Chg in DII Hold 0.67 % PAT Qtr 136 Cr. PAT Prev Qtr 187 Cr.
RSI 53.7 MACD 31.2 Volume 2,88,803 Avg Vol 1Wk 3,53,816
Low price 701 ₹ High price 1,173 ₹ PEG Ratio 2.47 Debt to equity 0.00
52w Index 70.8 % Qtr Profit Var 9.71 % EPS 40.1 ₹ Industry PE 25.3

📊 Financials: FINCABLES shows stable fundamentals. Quarterly PAT stood at 136 Cr, lower than the previous 187 Cr, reflecting some margin pressure. ROCE at 16.2% and ROE at 12.4% are moderate, indicating decent efficiency. EPS is healthy at 40.1 ₹. Debt-to-equity is 0.00, highlighting a debt-free balance sheet and strong financial stability.

💰 Valuation: The stock trades at a P/E of 25.8, close to the industry average of 25.3, suggesting fair valuation. Book value is 314 ₹, with current price at 1,035 ₹, implying a P/B ratio of ~3.3. PEG ratio of 2.47 indicates valuation is stretched relative to growth. Intrinsic value appears aligned with current levels, suggesting limited upside unless profitability improves.

Business Model & Health: FINCABLES operates in cables and electrical solutions, with strong presence in industrial and infrastructure projects. Competitive advantage lies in brand recognition, diversified product offerings, and demand from power and construction sectors. Overall health is stable, supported by profitability, zero debt, and institutional support.

📈 Entry Zone: RSI at 53.7 indicates neutral momentum. Support is near 960 ₹, resistance at 1,173 ₹. Entry around 950–1,000 ₹ offers a favorable long-term opportunity. Long-term holding is attractive given industry demand, though investors should monitor earnings consistency.


Positive

  • [Debt-Free](ca://s?q=FINCABLES_debt_free): Debt-to-equity ratio of 0.00 ensures strong financial stability.
  • 📈 [Institutional Support](ca://s?q=FINCABLES_institutional_support): FII holdings increased by 0.20% and DII by 0.67%.
  • 💹 [Strong EPS](ca://s?q=FINCABLES_EPS): EPS of 40.1 ₹ reflects solid earnings base.

Limitation

  • 📉 [Profit Decline](ca://s?q=FINCABLES_profit_decline): PAT fell from 187 Cr to 136 Cr.
  • ⚠️ [Valuation Stretch](ca://s?q=FINCABLES_growth_valuation): PEG ratio of 2.47 suggests stretched valuation relative to growth.
  • 📊 [Moderate Returns](ca://s?q=FINCABLES_return_metrics): ROCE (16.2%) and ROE (12.4%) are modest compared to peers.

Company Negative News

  • 📉 [Quarterly Decline](ca://s?q=FINCABLES_quarterly_decline): PAT dropped compared to previous quarter.

Company Positive News

  • 📈 [FII Inflow](ca://s?q=FINCABLES_FII_inflow): Foreign investors increased holdings by 0.20%.
  • 💹 [DII Support](ca://s?q=FINCABLES_DII_support): Domestic institutions increased holdings by 0.67%.

Industry

  • [Infrastructure Growth](ca://s?q=Indian_infrastructure_growth): Sector expanding with demand for cables and electrical solutions.
  • 📊 [Industry PE](ca://s?q=Cable_industry_PE): Sector average P/E is 25.3, close to FINCABLES’s valuation.

Conclusion

✅ FINCABLES demonstrates stable fundamentals, profitability, and zero debt, making it a fundamentally sound investment. While valuations are fair, earnings have shown some decline. Entry around 950–1,000 ₹ is favorable, and long-term holding is recommended given the company’s strong brand, industry demand, and financial stability.

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