Finolex Cables has rallied 10% to Rs 56.80 on back of heavy volumes on the counter. The stock opened at Rs 51.25 and touched high of Rs 57.45 on NSE.
A combined 2.46 million shares already changed hands on the counter till 1010 hours against an average around 400,000 shares that were traded daily in past two weeks on NSE and BSE.
Last week, the company had reported a 12.6% year-on-year (yoy) fall in net profit at Rs 39 crore, owing to a higher tax expenses. Total operating income grew marginally 4.5% to Rs 632 crore on yoy basis.
However, on operating front the company’s EBITDA or operating profit for the quarter grew by 14.4% yoy to Rs 67 crore while the EBITDA margin expanded by 91bp yoy to 10.5%. Expansion was mainly due to reduction in raw material cost and other expenses as a percentage of sales.
Analyst at Angel Broking expect the company’s initiatives like increase in advertisement spends, setting up of a solar power plant for captive consumption, and reduction in sale of copper rods to third party, to boost top-line and enhance profitability going forward.
Analyst maintains BUY recommendation on the stock with a revised target price target of Rs 68.
A combined 2.46 million shares already changed hands on the counter till 1010 hours against an average around 400,000 shares that were traded daily in past two weeks on NSE and BSE.
Last week, the company had reported a 12.6% year-on-year (yoy) fall in net profit at Rs 39 crore, owing to a higher tax expenses. Total operating income grew marginally 4.5% to Rs 632 crore on yoy basis.
However, on operating front the company’s EBITDA or operating profit for the quarter grew by 14.4% yoy to Rs 67 crore while the EBITDA margin expanded by 91bp yoy to 10.5%. Expansion was mainly due to reduction in raw material cost and other expenses as a percentage of sales.
Analyst at Angel Broking expect the company’s initiatives like increase in advertisement spends, setting up of a solar power plant for captive consumption, and reduction in sale of copper rods to third party, to boost top-line and enhance profitability going forward.
Analyst maintains BUY recommendation on the stock with a revised target price target of Rs 68.