Finolex Cables Receives 'Buy' Rating from MarketsMOJO After Strong First Half Performance in 2024

Finolex Cables, a leading player in the cable industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as a result of the company's strong performance in the first half of 2024.
One of the key factors contributing to this upgrade is the company's low Debt to Equity ratio, which is currently at 0 times. This indicates a healthy financial position and reduces the risk for investors.

In addition, Finolex Cables has shown positive results in the first half of 2024, with its DEBTORS TURNOVER RATIO(HY) at a high of 28.25 times and PBT LESS OI(Q) at Rs 271.42 cr. The company's PAT(Q) has also seen a significant increase, reaching Rs 243.92 cr.

From a technical standpoint, the stock is currently in a Bullish range and the trend has improved from Mildly Bullish on 24-Sep-24. This is supported by multiple factors such as MACD, Bollinger Band, and OBV.

However, there are some risks associated with investing in Finolex Cables. The company has shown poor long-term growth, with Net Sales growing at an annual rate of 10.25% and Operating profit at 1.92% over the last 5 years. Additionally, with a ROE of 13.2, the stock is currently trading at a Very Expensive valuation with a 4.6 Price to Book Value. This is higher than its average historical valuations, indicating a premium price.

Despite these risks, Finolex Cables has still managed to generate a return of 37.29% in the past year, with profits rising by 34.9%. However, the PEG ratio of the company is 0.9, which suggests that the stock may be slightly overvalued.

In conclusion, Finolex Cables has shown strong performance in the first half of 2024 and has received a 'Buy' rating from MarketsMOJO. While there are some risks associated with investing in the company, its low Debt to Equity ratio and positive technical indicators make it a promising investment opportunity.