Finolex Cables hits 52-week high; rises 19% in four days

Shares of Finolex Cables have surged nearly 19.3% in four trading sessions from its previous closing low of Rs 492.15 posted on 9 November 2021. The counter hit a 52-week high of Rs 597.9 in intraday today. The stock has zoomed 113% from its 52-week low of Rs 275 recorded on 17 November 2020.

The counter saw demand after the company posted robust second quarter results on 12 November 2021. On a consolidated basis, the company reported a 41.4% rise in net profit to Rs 144.77 crore on a 45.9% increase in net sales to Rs 932.98 crore in Q2 FY22 over Q2 FY21.

In volume terms, Electrical Wires increased by 5%. Within Communication Cables segment, volume of metal-based products improved by 4% during the quarter. Optic Fiber Cable volumes grew by over 80% during the quarter. New products within the FMEG sector all grew by between 6% and 15%

Profit before Exceptional item, Interest, Depreciation and Tax stood at Rs 217.3 crore in Q2 FY22, rising 112% year on year from Rs 102.2 crore posted in Q2 FY21.

On the technical front, the stock’s RSI (relative strength index) stood at 80.669. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading above its 50 and 100 days simple moving average placed at 491.88 and 497.58 respectively. These levels will act as crucial support zones in near term.

Finolex Cables is a manufacturer of electrical and communication cables. GwC India