Jeffries maintains hold on Finolex Cables, revises target price to Rs 410

Jefferies has maintained hold rating on Finolex Cables and revised long term target price of Rs 410 from Rs 525. The stock ended down 1.6% at Rs 368.75 on Thursday when the Sensex ended 1.59% down at 36,472.93.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 807.74 crore, down -1.86 % from last quarter sales of Rs 823.08 crore and up 2.09 % from last year same quarter sales of Rs 791.18 crore. The company has reported net profit after tax of Rs 76.80 crore in the latest quarter.


Investment Rationale

The company's Q1 results disappointed on multiple counts, said Jefferies. The brokerage acknowledged the franchise in cables & wires and robust balancesheet. But, tepid volumes, core margin miss and persistent losses in new products are key risks, said Jefferies.