Why This HDFC Group-Backed Midcap Stock Is Surging 7% Today

Shares of Finolex Cables jumped close to 7% on Friday to hit an intraday high of ₹1,098.

What Happened: The shares of the company are surging today as global research firm Jefferies maintained its ‘buy’ rating on the stock, raising the price target to ₹1,270 from ₹1,025. The revised price target indicates an over 23% upside from the stock’s last closing price of ₹1,028.20.

See Also: What’s Going On With JSW Steel Shares Today?

The firm said that the company stands to benefit from the housing market and telecom market. The analysts expect the company’s communication segment to benefit from the 5G rollout.

The firm expects the HDFC Group-backed – two HDFC Group entities, HDFC Life Insurance and HDFC Mutual Fund hold stakes – company’s PAT and sales to grow at CAGRs (compound annual growth rate) at 22% and 19% over FY23-26.

Price Action: Finolex Cables’ share price was up 5.43% to trade at ₹1,084.05 in early trade on Friday.

News that Moves

Get Ring The Bell, Benzinga India’s weekly briefing. Designed specifically for investors like you.

You have successfully subscribed.

Read Next: Why This Adani Stock Is Upbeat Today

Posted In: Price TargetReiterationAnalyst RatingsMoversTrading IdeasFinolex CablesJefferies