FINCABLES - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.9

📊 Financial Performance

PAT Growth: ₹192 Cr vs ₹147 Cr — strong absolute growth, though quarterly variation of 3.01% points to slowed momentum.

ROCE (17.6%) & ROE (13.4%): Indicates solid efficiency in capital usage and shareholder returns — above industry averages.

EPS (₹45.8): Supports valuation — highlights a healthy bottom line.

Debt-to-Equity (0.00): Debt-free balance sheet — rare and impressive in capex-heavy sectors.

Dividend Yield (0.88%): Modest, offering some passive income.

💰 Valuation Metrics

Metric Value Implication

P/E Ratio 19.8 Appears undervalued vs. Industry PE (30.3)

P/B Ratio ~2.53 Reasonable premium — signals confidence in assets

PEG Ratio 3.71 High — suggests price not justified by expected growth

Intrinsic Value — Estimated around ₹850–₹950 — aligns with current price

⚠️ PEG ratio signals overexpectation on growth; proceed with moderate caution if buying at current levels.

🧵 Business Model & Competitive Edge

Sector: Electrical cables and wiring solutions for industrial, infrastructure, and residential markets.

Strengths

Leading brand with strong distribution and product diversity.

Zero debt offers strategic flexibility in expansion and investment.

Risks

Sensitive to fluctuations in input costs (copper, aluminum).

DII hold ↓ 0.50% — may signal cooling domestic sentiment.

📈 Technical Indicators & Entry Strategy

Current Price: ₹908

DMA 50 / 200: ₹941 / ₹1,011 — trading below both, showing weakness

RSI (38.6): Near oversold zone — indicates potential bottoming

MACD (-14.3): Strong bearish trend — wait for momentum shift

Volume: Declining — suggests low participation and weak trend confirmation

🛒 Suggested Entry Zone: ₹850–₹880 Ideal accumulation range near support; wait for MACD crossover and RSI improvement before commitment.

🧭 Long-Term Holding Guidance

FINCABLES offers value through its debt-free structure and consistent profitability. A long-term hold could pay off if the company focuses on

Innovation in energy-efficient cable solutions

Smart infrastructure product penetration

Margin defense amid input volatility

Consider holding if you're targeting moderate risk with solid capital efficiency. But trim expectations for explosive growth at current valuations.

Ready to compare this with Polycab or KEI for a sector-wide benchmark? Or build a power infra portfolio with multi-year horizons? Let’s keep the signal strong. 🔌

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