Finolex Cables Ltd. Stock Falls to 52-Week Low of Rs.705.25

Recent Price Movement and Market Context

On 21 Jan 2026, Finolex Cables Ltd. recorded an intraday low of Rs.705.25, down 3.45% from the previous close, and ended the day with a 3.23% loss. This decline is in line with the sector’s performance, where the cables electricals segment fell by 2.84%. The stock’s current price is substantially below its 52-week high of Rs.1,059.05, indicating a significant correction over the past year.

The broader market environment has also been challenging. The Sensex opened 385.82 points lower and traded at 81,605.33, down 0.7% on the day. Notably, the Sensex has been on a three-week losing streak, declining 4.85% over this period. The index is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, signalling some underlying resilience despite short-term weakness.

Technical Indicators and Moving Averages

Finolex Cables is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests sustained downward momentum and a lack of near-term buying interest. The stock’s consecutive three-day fall has resulted in a cumulative loss of 9.14%, underscoring the pressure on the share price.

Financial Performance and Valuation Metrics

Finolex Cables’ financial results have shown a mixed picture. The company reported flat results in the half-year ended September 2025, with return on capital employed (ROCE) at a low 15.10%, the lowest in recent periods. Cash and cash equivalents also declined to Rs.54.94 crores, reflecting a tighter liquidity position compared to previous periods.

Despite these near-term pressures, the company maintains a low average debt-to-equity ratio of zero, indicating a conservative capital structure. Over the long term, Finolex Cables has demonstrated healthy growth, with net sales increasing at an annual rate of 18.54% and operating profit growing at 15.02% per annum. The return on equity (ROE) stands at 11.6%, and the stock trades at a price-to-book value of 2, suggesting an attractive valuation relative to its peers’ historical averages.

Comparative Performance and Market Capitalisation

Over the past year, Finolex Cables has underperformed the broader market, delivering a negative return of 30.72%, while the Sensex gained 7.56% over the same period. The stock has also lagged behind the BSE500 index in the last three years, one year, and three months, indicating below-par performance on both short- and long-term horizons.

The company’s market capitalisation grade is rated 3, reflecting a mid-tier market cap status within its sector. The Mojo Score for Finolex Cables currently stands at 44.0, with a Mojo Grade of Sell, downgraded from Hold on 20 Jan 2026. This downgrade reflects the recent deterioration in fundamentals and price performance.

Institutional Holdings and Investor Profile

Institutional investors hold a significant stake in Finolex Cables, accounting for 25.19% of the shareholding. These investors typically possess greater resources and analytical capabilities to assess company fundamentals, which may influence trading patterns and price movements in the stock.

Summary of Key Concerns

The recent decline to a 52-week low is attributable to a combination of factors including flat half-year results, reduced cash reserves, and a low ROCE. The stock’s technical weakness, trading below all major moving averages, further compounds the downward pressure. Additionally, the broader market and sectoral weakness have contributed to the stock’s underperformance relative to benchmarks such as the Sensex and BSE500.

Long-Term Growth and Valuation Considerations

While the short-term price action has been negative, Finolex Cables has demonstrated consistent long-term growth in net sales and operating profit. Its conservative debt profile and reasonable valuation metrics provide a foundation that contrasts with the recent price weakness. The stock’s price-to-book ratio of 2 and ROE of 11.6% suggest that the market is pricing in current challenges while recognising the company’s underlying asset base and profitability potential.

Sectoral and Market Influences

The cables electricals sector has experienced a decline of 2.84% on the day, reflecting broader industry pressures. The Sensex’s ongoing three-week decline and trading below its 50-day moving average indicate a cautious market environment that has affected stocks across sectors, including Finolex Cables.

Performance Metrics at a Glance

• 52-week low: Rs.705.25 (21 Jan 2026)


• 52-week high: Rs.1,059.05


• One-year return: -30.72%


• Sensex one-year return: +7.56%


• ROCE (HY): 15.10%


• Cash and cash equivalents (HY): Rs.54.94 crores


• Debt to equity ratio: 0 (average)


• Net sales growth (annual): 18.54%


• Operating profit growth (annual): 15.02%


• Return on equity (ROE): 11.6%


• Price to book value: 2


• Institutional holdings: 25.19%


• Mojo Score: 44.0 (Sell, downgraded from Hold on 20 Jan 2026)

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