Key Events This Week
7 Sep: Technical momentum shifts amid mixed market signals
8 Sep: Upgraded to Buy on strong financial and technical performance
10 Sep: Hits new 52-week high of Rs.1383.8
11 Sep: Hits new 52-week high of Rs.1454.35
11 Sep: Valuation shifts signal changing price attractiveness
7 September: Technical Momentum Shifts Amid Mixed Signals
Finolex Cables began the week with a nuanced technical landscape. Despite a 4.19% decline from the previous close, the stock closed at Rs.1,219.75, showing resilience above its 52-week low of Rs.701.00. The Moving Average Convergence Divergence (MACD) indicator remained bullish on weekly and monthly charts, signalling sustained upward momentum. However, mixed signals from the Know Sure Thing (KST) oscillator and Dow Theory suggested short-term caution. On-balance volume (OBV) was bullish, indicating accumulation by investors. The stock’s relative outperformance versus the Sensex’s 0.46% decline highlighted its underlying strength despite market volatility.
8 September: Upgrade to Buy on Strong Financial and Technical Performance
MarketsMOJO upgraded Finolex Cables from Hold to Buy, reflecting improved fundamentals and technicals. The company reported record quarterly PBDIT of Rs.244.18 crores and a 77.17% surge in profit before tax to Rs.262.97 crores. Net profit after tax reached Rs.249.04 crores, underscoring operational efficiency. The stock closed at Rs.1,303.50, up 6.24% on the day, outperforming the Sensex’s 0.21% decline. The upgrade was supported by a Mojo Score increase to 75.0, a PEG ratio of 0.8 signalling undervaluation relative to growth, and a net-debt-free balance sheet. Technical indicators shifted to a bullish stance, with daily moving averages confirming positive momentum.
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10 September: New 52-Week High of Rs.1383.8
Finolex Cables hit a new 52-week high of Rs.1383.8, continuing its strong rally. The stock gained 5.02% on the day, closing at Rs.1,420.50, while the Sensex declined marginally by 0.03%. This marked the fourth consecutive session of gains, delivering a cumulative return of 13.45% over this period. The stock traded well above all key moving averages, signalling a robust bullish trend. Despite some mixed technical signals such as a bearish weekly RSI and mildly bearish weekly KST, the overall momentum remained positive. The company’s strong quarterly earnings and net-debt-free status underpinned investor confidence, with institutional holdings at 26.35%.
11 September: New 52-Week High of Rs.1454.35 and Valuation Shift
On the final trading day of the week, Finolex Cables extended its gains to reach an intraday high of Rs.1454.35, closing at Rs.1,423.25 with a modest 0.19% increase. The stock outperformed the Sensex, which fell 0.39%. The day’s volatility was notable at 5.88%, reflecting active trading interest. Over five consecutive sessions, the stock delivered a 19.1% cumulative return. However, valuation metrics shifted, with the price-to-earnings ratio rising to 27.15 and price-to-book value increasing to 3.57, moving the stock’s valuation from fair to expensive territory. Despite this, the PEG ratio remained below 1 at 0.93, suggesting earnings growth expectations still justify the premium. The company’s return on equity stood at 11.7%, and profits increased 29.2% year-on-year, supporting the elevated multiples.
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Daily Price Performance vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-09-07 | Rs.1,226.90 | +0.59% | 36,218.97 | -0.46% |
| 2026-09-08 | Rs.1,303.50 | +6.24% | 36,144.32 | -0.21% |
| 2026-09-09 | Rs.1,352.55 | +3.76% | 35,921.77 | -0.62% |
| 2026-09-10 | Rs.1,420.50 | +5.02% | 35,912.77 | -0.03% |
| 2026-09-11 | Rs.1,423.25 | +0.19% | 35,773.24 | -0.39% |
Key Takeaways
Strong Outperformance: Finolex Cables surged 16.68% over the week, vastly outperforming the Sensex’s 1.68% decline, highlighting its resilience amid broader market weakness.
Financial Strength: Record quarterly profits, net-debt-free status, and robust operational metrics underpin the stock’s rally and justify the upgrade to a Buy rating.
Technical Momentum: Bullish MACD, moving averages, and OBV indicators confirm sustained upward momentum, despite some mixed signals from RSI and KST oscillators.
Valuation Shift: The stock’s valuation moved from fair to expensive, with P/E rising to 27.15 and P/BV to 3.57, reflecting strong price appreciation but signalling limited margin for further multiple expansion without earnings growth.
Sector Leadership: Finolex’s consistent outperformance within the cables and electricals sector, supported by institutional holdings of 26.35%, highlights its market leadership and investor confidence.
Conclusion
Finolex Cables Ltd’s impressive 16.68% weekly gain amid a declining Sensex underscores its strong fundamentals and technical momentum. The company’s record quarterly earnings, net-debt-free balance sheet, and upgraded Buy rating by MarketsMOJO have driven sustained investor interest. While valuation metrics have shifted to an expensive rating, the PEG ratio below 1 suggests earnings growth expectations remain supportive. Investors should note the mixed technical signals and elevated multiples, balancing optimism with caution. Overall, Finolex Cables stands out as a resilient and high-performing stock within the electrical cables sector, demonstrating robust growth and market leadership in a challenging environment.
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