Finolex Cables shares jump 14% to 52-week high, Jefferies lift target to ₹1,410

Finolex Cables shares surged 14% to reach a 52-week high of ₹1,374 on the NSE, after delivering impressive Q1 results. In just two trading sessions, the stock has climbed 29.6%, while Jefferies has kept its "accumulate" rating and raised its target price to ₹1,410 from ₹1,200, following Q1 results. Finolex Cables reported a remarkable 59.4% year-over-year increase in standalone profit after tax, which rose to ₹221.28 crore in Q1FY27 compared to ₹138.82 crore in Q1FY26.

Revenue from operations also expanded by 44.2% year-over-year to ₹2,013.15 crore in Q1FY27 from ₹1,395.52 crore in Q1FY26. Jefferies stated that Q1 surpassed expectations, with strong growth in electricals, including C&W, sales, and EBIT driven by multiple price hikes over the past 12 months. The brokerage highlighted that the key margin improvement came from communication, particularly optical fiber cable prices and volumes.

Jefferies anticipates the margin benefit from backward integration to start accruing in Q3FY27 and believes Finolex Cables will maintain positive EBIT. Jefferies has recommended buying Finolex Cables and increased its target price to ₹1,410, which was previously ₹1,200.