Stalking Stocks: Finolex Cables
Finolex Cables is a leading manufacturer of electrical wires and cables in India. The company has been consistently increasing its revenues over the past few years.
It’s Q3 FY23 result surprised most analysts on the streets rewarding our investors with a remarkable 20% increase in its stock price in just a week since being added to our portfolio in January.
One of the key reasons behind Finolex's success is its strong product-market fit. The company has been able to position itself as a leader in the electrical wires and cables market in India, with a 22% market share. Unlike its competitors, Finolex has remained focused on its core business, deriving 85% of its revenue from electrical wires and cables. This has allowed the company to develop a deep understanding of its market and customers, enabling it to offer high-quality products at competitive prices.
Furthermore, Finolex has seen over 24% growth in volumes, which is a clear indication that consumption is coming back. This growth can be attributed to various factors, including the government's focus on infrastructure development and the increase in demand for power and telecom cables. Finolex has also been able to leverage its strong distribution network to expand its reach and offer its products to a wider customer base.
In addition, Finolex has been investing in research and development to develop new products and technologies, which has helped it to stay ahead of the competition. The company's focus on innovation and quality has helped it to build a strong brand that is trusted by its customers.
Overall, Finolex Cables is a company that has a strong product-market fit and is well-positioned to take advantage of the growing demand for electrical wires and cables in India. Its focus on its core business, along with its investment in innovation and quality, has helped it grow to its position of a leader in the market. With its consistent revenue growth and strong market share, Finolex is a great addition to any portfolio.