What happened
InCred Equities maintained Add on Finolex Cables with Rs 1,435 target after a ~16% weekly surge to Rs 1,423.25 on BSE on Sep 11.
InCred Equities has maintained an 'Add' rating on Finolex Cables with a target price of Rs 1,435 per share, calling the story 'Unlocking growth'. The brokerage note came after the stock surged nearly 16% in the week to September 14, 2026, closing at Rs 1,423.25 on BSE on Friday, September 11, with a market capitalisation of Rs 21,767.09 crore, an intraday high of Rs 1,498.35 and low of Rs 1,340.
The bullish rationale rests on backward integration and a data-centre-led demand surge for optical fibre cable (OFC). Finolex remains India's only wire and cable player with in-house continuous copper-rod casting and, after commissioning its Vapour Axial Deposition (VAD) plant, India's second optical-fibre preform producer, which has cut import dependence. The brokerage highlighted that the stock still trades at a steep discount to most Cables & Wires and OFC peers, and expects that gap to narrow as earnings validate the capacity expansion.
On the ground, Finolex is doubling optical fibre cable capacity to 8 million fibre kilometres from 4 million km, anchored by a 100-metric-tonne preform plant operational by end-July with another 100 MT planned to reach 200 MT total. CEO Mahesh Vishwanathan told Financial Express that fibre availability is tight globally with no fibre available anywhere, and that data-centre, AI, telecom and defence demand will drive the next few years of growth as the communication cable business scales to about Rs 750 crore from ~Rs 500 crore.
Investors are also tracking momentum: 3-month return 40.49%, year-to-date ~80% in 2026, 1-year ~68% and 5-year ~187%, with ROE at 16.18%. InCred's view is that with fibre prices up 5-6x in the past year and global supply constrained, Finolex's integrated fibre-to-cable chain positions it to capture pricing and volume gains, but execution on the new preform and cable capacities will be key to closing the valuation discount.
Why InCred is bullish
Three pillars: backward integration (in-house copper rod + VAD preform), fibre cable capacity doubling, and data-centre-led OFC demand with global fibre shortage and 5-6x price jump. Valuation at steep discount to peers is seen as catch-up opportunity if earnings deliver.
Timeline
- End-July 2026 — First 100 MT preform plant operational (Financial Express)
- Sep 11, 2026 — Stock closed at Rs 1,423.25 on BSE after 16% weekly surge
- Sep 14, 2026 — Livemint reports InCred Add rating with Rs 1,435 target
What to watch
Execution of second 100 MT preform, ramp to 8M fkm, quarterly earnings showing margin from captive fibre, and whether valuation discount to C&W/OFC peers actually narrows. Global fibre price and data-centre capex are swing factors.
Why it matters for me
The stock trades near target at a steep discount to C&W/OFC peers; further upside hinges on earnings from the new 200 MT preform and doubled OFC capacity.
Money
Stock Investors
Investors get a clear upside marker at Rs 1,435; stock already near target after 16% weekly surge, so near-term gains depend on earnings delivery from new fibre capacity.
Work
Business Executives
Cables and data-centre supply chain players face tighter fibre supply and higher prices, opening share for integrated players like Finolex.
Daily Life
General Public
No direct consumer price impact, but stronger domestic OFC capacity supports India's data-centre and 5G rollout over time.
What to remember
Integrated fibre-to-cable play is the thesis — execution will decide if the discount closes.
Finolex Cables: InCred Add at Rs 1,435 — fibre capacity doubling to 8M km to ride data-centre boom
Verified sources (2)
Finolex Cables share price target 2026: Buy - 'Unlocking growth' | Check rationale behind rating
↗Finolex communication cables set to ride data centre, AI wave
↗Claims and linked sources
6 claimsInCred Equities maintained an 'Add' rating for Finolex Cables with a target price of Rs 1,435 per share.
Finolex Cables share price surged nearly 16% in the week prior to the report around 14 Sep 2026.
InCred highlighted the stock trades at a steep discount to most Cables & Wires and OFC peers and expects the gap to narrow as earnings validate growth from expanded capacities.
Finolex closed 0.19% higher at Rs 1,423.25 on BSE on Sep 11 with market cap Rs 21,767.09 crore; intraday high Rs 1,498.35 and low Rs 1,340.
Finolex set up a 100 MT preform plant operational by end-July and is adding another 100 MT to reach 200 MT total, doubling OFC capacity to 8 million fibre kilometres from 4 million km.
The expansion is expected to grow communication cable business to Rs 750 crore from ~Rs 500 crore, driven by data-centre, AI and telecom demand amid tight global fibre supply and 5-6x price rise.
Community signals
Signal-only · not reporting“We believe this valuation gap should narrow over the coming quarters as earnings delivery validates the growth potential from expanded capacities.”
“Fibre availability is a major issue and there is no fibre available anywhere in the world. It is the right time to be in this industry.”