FINCABLES - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.0

📊 Core Financials Breakdown

Profitability

ROCE: 16.2% and ROE: 12.4% — solid returns, indicating efficient capital use.

EPS: ₹36.7 — healthy earnings base.

PAT Qtr: ₹139 Cr vs ₹152 Cr — slight dip, but overall profit trend remains strong.

Balance Sheet & Cash Flow

Debt-to-Equity: 0.00 — debt-free, which is a major strength.

Book Value: ₹301 — P/B ~2.8, reasonable for a manufacturing company.

Dividend Yield: 0.95% — modest but consistent.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 23.1 Below industry average (29.1) — attractive

PEG Ratio 2.21 Slightly expensive relative to growth

Intrinsic Value ~₹880–₹920 CMP is slightly undervalued

Valuation is fair, with room for upside if earnings growth sustains.

🏭 Business Model & Competitive Edge

Sector: Electrical & telecom cables — essential infrastructure play.

Segments

Electrical cables, communication cables, copper rods, and consumer electricals.

Strengths

Diversified product portfolio with strong brand recall.

Expanding into high-margin consumer electricals (LEDs, fans, heaters).

Debt-free status enhances resilience and flexibility.

Challenges

Slight decline in institutional holding (DII down 0.50%) — worth monitoring.

PEG ratio suggests growth expectations may be priced in.

📉 Technicals & Entry Zone

Current Price: ₹845

DMA 50: ₹869 | DMA 200: ₹963 — trading below both, indicating short-term weakness

RSI: 46.7 — neutral zone

MACD: Negative — bearish momentum

📌 Suggested Entry Zone: ₹800–₹830

A dip near ₹820 would offer a better entry point with lower downside risk.

🧭 Long-Term Holding Guidance

Hold if invested: Strong fundamentals, zero debt, and diversified growth make it a solid long-term play.

Accumulate on dips: Ideal for investors seeking exposure to India’s infra and housing boom.

Let me know if you'd like a peer comparison with Polycab or KEI Industries, or a forecast model based on housing sector demand.

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