Finolex Cables Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Finolex Cables Ltd trades at ₹969, in a downtrend and 67 weeks into that stage. That is +15.0% against its own 200-day average. It sits at 96% of a 52-week range of ₹722 to ₹979. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 5 straight weeks.

Today the stock is in a downtrend — week 67 of stage 4, confirmed. At ₹969 it trades +15.0% versus its 200-day average and sits at 96% of its 52-week range (₹722–₹979).

Against the market, two honest reads. Cumulative: over the last 10.0 years the stock moved +320% while the NIFTY 500 moved +260% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 5 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 59th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Finolex Cables Ltd trades at 21.4× P/E, mid-range by its own standards (59th percentile). Its long-run median P/E is 20.6×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 21.4× is mid-range by its own standards (59th percentile), against a long-run median of 20.6× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +1.9% against a +16.1% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +19.3%/yr price move, ~+9.1%/yr came from earnings growth and ~+10.2 pp from the multiple (expanding); over 10y, of the +15.4%/yr price move, ~+10.3%/yr came from earnings growth and ~+5.1 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Finolex Cables Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE holding at 16.0% — the per-curve reads carry the story. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

56.6/100 — rank 2 of 5 in Cables - Telecom · 73% evidence confidence

Finolex Cables Ltd scores 56.6 out of 100 against the 5 companies it is compared with in Cables - Telecom, ranking 2. Price leads the evidence: RS versus the benchmark is 17.1%, but earnings trajectory is weak. Wait for revenue and profit confirmation.

The four contributions add to the total exactly: 12 + 19.6 + 11.9 + 13.1 = 56.6. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Finolex Cables Ltd reported ₹1,951 Cr of revenue in the Mar 26 quarter, +22.3% year on year. That is the 5th straight quarter of year-on-year growth. Over 10 years it has compounded at 10.4% a year. The last full year, FY26, came in at ₹6,321 Cr. The last four reported quarters add to ₹6,322 Cr.

Finolex Cables Ltd reported ₹1,951 Cr of revenue in the Mar 26 quarter, +22.3% year on year. That is the 5th straight quarter of year-on-year growth. Over 10 years it has compounded at 10.4% a year. The last full year, FY26, came in at ₹6,321 Cr. The last four reported quarters add to ₹6,322 Cr.

FY26 revenue came in at ₹6,321 Cr (+18.8% on the year), capping 10 years at 10.4% compound. The latest quarter (Mar 26) printed ₹1,951 Cr, +22.3% year on year — the 5th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +19.0% growth against the decade's 10.4% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +18.9% over the last 4 quarters against +12.3%/yr over the last 8 — accelerating; TTM profit +1.9% vs +4.7%/yr — stabilising.

→ Revenue grew — did margins hold as it scaled? Next: 9.0% this quarter (−2.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Finolex Cables Ltd's operating margin is 9.0% in the Mar 26 quarter, −2.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0% to 16.0%. The current quarter is running below every full year in that window.

Finolex Cables Ltd's operating margin is 9.0% in the Mar 26 quarter, −2.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0% to 16.0%. The current quarter is running below every full year in that window.

The latest quarter's operating margin is 9.0%, −2.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0%–16.0%.

🚨 Why the margin moved: operating margin went −1.5 pp year on year while gross margin went −2.1 pp — the loss came mostly from the gross line: input costs and pricing.

→ Margins slipped — did that reach the bottom line? Next: profit +16.7% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Finolex Cables Ltd earned ₹224 Cr of net profit in the Mar 26 quarter, +16.7% year on year. It is the 3rd consecutive quarter of growth. Full-year FY26 profit was ₹714 Cr. The 10-year compound rate is 8.1%. That is 11.5% of the quarter's revenue. The same quarter a year earlier earned ₹192 Cr.

Finolex Cables Ltd earned ₹224 Cr of net profit in the Mar 26 quarter, +16.7% year on year. It is the 3rd consecutive quarter of growth. Full-year FY26 profit was ₹714 Cr. The 10-year compound rate is 8.1%. That is 11.5% of the quarter's revenue. The same quarter a year earlier earned ₹192 Cr.

Mar 26 profit was ₹224 Cr, +16.7% year on year — the 3rd consecutive quarter of growth. On the full year, FY26 printed ₹714 Cr (+1.9%), and the 10-year compound rate is 8.1%.

Why profit moved: revenue contributed +22.3% and the margin −2.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +8.3% vs revenue +19.0%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 40% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 40% of Finolex Cables Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹49.0 Cr of operating cash against ₹714 Cr of profit. After ₹221 Cr of capital spending, ₹−172 Cr was left as free cash.

FY26: operating cash of ₹49.0 Cr against reported profit of ₹714 Cr, leaving free cash of ₹−172 Cr after ₹221 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 40% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 40%: the cash cycle tightened 48 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: the bigger cash user is investment — capital spending ran 4.3× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹649 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Finolex Cables Ltd's cash conversion cycle runs 78 days in FY26, down from 126 days in FY21. Capital spending ran ₹649 Cr over the last 3 years. At FY26 sales of ₹6,321 Cr each day of that cycle holds about ₹17.3 Cr, so roughly ₹1,351 Cr sits inside the business at any moment.

FY26: debtors at 21 days, inventory at 73 days — roughly 2.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 78 days, tighter than FY21's 126.

The full loop: cash goes out to suppliers and production on day 0; stock waits 73 days to sell; customers pay about 21 days after that; and suppliers themselves are paid at 16 days — netting out to the 78-day cycle.

In money terms: at FY26 sales of ₹6,321 Cr, each day of the cycle holds about ₹17.3 Cr — so the 78-day loop keeps roughly ₹1,351 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹649 Cr over the last 3 fiscal years against ₹150 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹105 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 16%.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Finolex Cables Ltd earns a ROCE of 16% in FY26. That is up from a trough of 16% in FY23. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 11.3% net margin on 0.90× asset turns.

FY26 ROCE is 16%, recovered from a FY23 trough of 16% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 11.3% net margin × 0.90× asset turns × 1.15× balance-sheet leverage ≈ 11.7% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.00.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Finolex Cables Ltd carries ₹19.0 Cr of borrowings against ₹6,086 Cr of equity in FY26, a debt-to-equity of 0.00. Operating profit covers the interest bill north of 100×. Over 5 years borrowings went from ₹7.0 Cr to ₹19.0 Cr. Capital spending ran ₹649 Cr across the last 3 of those years.

FY26: borrowings of ₹19.0 Cr against equity of ₹6,086 Cr — a debt-to-equity of 0.00. Operating profit covers the interest bill north of 100×. Over 5 years borrowings went from ₹7.0 Cr to ₹19.0 Cr while capital spending ran ₹649 Cr in just the last 3 — part of the build-out is riding on borrowed money.

→ Who owns this, and are they adding or leaving? Next: Foreign institutions cut 2.0 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 2.0 points of Finolex Cables Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 9.7% of the company. Domestic institutions moved −0.1 points over the same window, to 16.7%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −2.0 points over 8 quarters to 9.7%; Domestic institutions: −0.1 points over 8 quarters to 16.7%; Promoters: +0.0 points over 8 quarters to 35.9%.

🚨 Why the register moved: foreign institutions drove it (−2.0 points) — distribution into the market’s bid.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Finolex Cables Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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