FINCABLES - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 4.0
| Stock Code | FINCABLES | Market Cap | 11,391 Cr. | Current Price | 746 ₹ | High / Low | 1,060 ₹ |
| Stock P/E | 18.9 | Book Value | 314 ₹ | Dividend Yield | 1.07 % | ROCE | 16.2 % |
| ROE | 12.4 % | Face Value | 2.00 ₹ | DMA 50 | 754 ₹ | DMA 200 | 843 ₹ |
| Chg in FII Hold | -0.48 % | Chg in DII Hold | -0.11 % | PAT Qtr | 187 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 50.8 | MACD | -9.08 | Volume | 1,26,657 | Avg Vol 1Wk | 1,41,458 |
| Low price | 701 ₹ | High price | 1,060 ₹ | PEG Ratio | 1.81 | Debt to equity | 0.00 |
| 52w Index | 12.7 % | Qtr Profit Var | 27.9 % | EPS | 39.3 ₹ | Industry PE | 18.6 |
📊 Analysis: FINCABLES shows solid fundamentals for long-term investment. ROCE (16.2%) and ROE (12.4%) indicate decent capital efficiency. EPS of 39.3 ₹ is strong, and debt-to-equity at 0.00 reflects a debt-free balance sheet. The P/E ratio (18.9) is aligned with the industry average (18.6), suggesting fair valuation. Dividend yield of 1.07% provides modest shareholder returns. PEG ratio of 1.81 indicates growth is priced at a premium but still acceptable. Technically, the stock is trading near DMA 50 (754 ₹) and below DMA 200 (843 ₹), with RSI at 50.8 (neutral) and MACD negative, suggesting consolidation before potential upside.
💰 Ideal Entry Zone: 710 ₹ – 740 ₹ (closer to support levels and below DMA 50, offering margin of safety).
📈 Exit / Holding Strategy: For long-term investors, holding is recommended given fair valuation, debt-free status, and consistent earnings growth. If already holding, maintain positions with a 3–5 year horizon. Exit strategy: consider partial profit booking near 1,000–1,060 ₹ (52-week high zone) if valuations stretch, while retaining core holdings for compounding growth.
Positive
- Debt-free balance sheet (Debt-to-equity 0.00).
- Strong EPS of 39.3 ₹ reflects profitability.
- Quarterly PAT growth (187 Cr. vs 139 Cr.) shows earnings momentum.
- Dividend yield of 1.07% provides shareholder returns.
Limitation
- ROCE (16.2%) and ROE (12.4%) are moderate compared to sector leaders.
- PEG ratio of 1.81 suggests growth is priced expensively.
- Stock trading below DMA 200, showing weak medium-term momentum.
- Decline in FII (-0.48%) and DII (-0.11%) holdings.
Company Negative News
- MACD negative, indicating short-term weakness in trend.
- Institutional investors reducing exposure (FII and DII declines).
Company Positive News
- Quarterly profit variation +27.9%, showing strong earnings growth.
- Debt-free operations provide financial stability.
Industry
- Industry PE at 18.6, aligned with company’s valuation, suggesting fair pricing.
- Cable and electrical equipment sector benefits from infrastructure growth and industrial expansion.
Conclusion
✅ FINCABLES is a good candidate for long-term investment, supported by debt-free balance sheet, fair valuation, and consistent earnings growth. Ideal entry zone is 710–740 ₹ for margin of safety. Investors should hold for 3–5 years to benefit from compounding growth, with partial exits near 1,000–1,060 ₹ if valuations peak.
Selva, would you like me to extend this into a peer benchmarking overlay with cable and electrical sector peers (like Polycab, KEI Industries, Havells) so you can compare relative strength and margin-of-safety positioning for your basket rotation strategy?