Finolex Cables, Finolex Industries surge up to 13% on heavy volumes

Till 10:52 AM; a combined 17.63 million shares, representing 2.8 per cent of the total equity of Finolex Industries, have changed hands on the NSE and BSE

Shares of Finolex Industries and Finolex Cables have rallied by up to 13 per cent on the BSE in Monday’s intra-day trade amid heavy volumes.

 

On clarification on volume movement, Finolex Cables last week said that the company has disclosed all the events, information etc., as may be required under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. There is no pending information /announcement with us which will have bearing on the price or volume behaviour in the scrip, the company said.

 

Shares of Finolex Cables surged 12 per cent to ₹940.70 on the BSE in intraday trade today. The average trading volumes on the counter jumped nearly three-fold. A combined 3.31 million equity shares have changed hands on the NSE and BSE till 10:52 AM; exchange data shows.

 

 

Meanwhile, shares of Finolex Industries soared 13 per cent to ₹196.95, on the back of an over seven-fold jump in its average trading volumes. A combined 17.63 million shares representing 2.8 per cent of the total equity of the company have changed hands on the NSE and BSE.  ALSO READ | Stock Market LIVE Updates: Sensex 900pts higher at 77,800; Nifty above 23,600

 

Finolex Industries is engaged in the business of manufacturing PVC pipes and fittings and PVC resin. The company has manufacturing facilities in the states of Maharashtra and Gujarat.

 

Finolex Cables is principally engaged in the manufacturing of electrical cables, communication cables and other electrical appliances.

 

However, both these stocks are down 45 per cent from their respective 52-week highs of ₹355.70 and ₹1,700, touched in June 2024. Finolex Cables hit a 52-week low of ₹781 on March 17, while Finolex Industries hit a 52-week low of ₹166.75 on March 3.

 

Meanwhile, competition continues to intensify in the cables & wires (C&W) sector as Adani Enterprises (AEL) has completed the incorporation of a Joint Venture (JV) with Praneetha Ecocables with Praneetha Ventures. The objects and effects of the acquisition include manufacturing, marketing, distributing and selling metal products, cables and wires.  ALSO READ | Gland Pharma jumps 6% on multiple bulk deals; check buyers' detail here

 

In a stock exchange filing on March 19, AEL informed the market that Kutch Copper, a wholly owned subsidiary, has been incorporated as a 50:50 JV company — Praneetha Ecocables — with Praneetha Ventures. Through the JV, Adani group will manufacture, market, distribute, buy, and sell metal products, cables, and wires, it said.

 

Adani’s entry into the C&W sector comes less than a month after Aditya Birla group, through UltraTech Cement, entered the industry. On February 25, UltraTech informed the stock exchanges that its board had approved a proposal to enter the construction value chain through the C&W segment, with a capital expenditure of ₹1,800 crore to be spent over the next two years.  ALSO READ | Paradeep Parivahan makes negative debut, lists at 20% discount on BSE SME

 

After Birla group, Adani has entered into the cable & wire business. Birla group had earlier announced a capex of ₹1800 crore which we believe could take ~8 per cent pie of the market. From Adani's perspective, more details are to be ascertained. Overall, this could impact growth and margins over the medium-term for cable and wire stocks like KEI, Polycab, RR Kabel and Finolex cables, ICICI Securities had said in a note.