Finolex Cables has been on a winning streak for the past six days due to strong third-quarter results. The stock hit a 52-week high of Rs 633.85 on the NSE on February 15, up 4% from its previous close, while gaining nearly 17% in the six days.

With that surge, the stock has risen 12% over the past two days. It traded at its highest level since June 2018 and hit an all-time high of Rs 750 on January 19, 2018.

Shares of Fast Electronics Products (FMEG) have outperformed the market over the past week, rising 15% after the company reported a good set of numbers for the quarter ending December 2022 (Q3FY23). The S&P BSE Sensex has risen less than 1% over the period.

In Q3FY23, Finolex Cables’ profit after tax rose 42% YoY and Rs 135 crore QoQ on improved operating performance. On the other hand, revenue rose 6% quarter-on-quarter and 18% year-on-year to Rs 1,150 crore.

“The distribution push is starting to help improve revenue share. In communications cables, most product lines saw volume expansion. Metal-based product sales were up 27% in the quarter, and fibre optic cable sales were up more than 70%,” the company said.

Meanwhile, the company said its EBITDA margin returned to normal at 15% in the quarter. However, the EBITDA margin improved by 207 basis points quarter-over-quarter and decreased by 311 basis points year-over-year.

Finolex Cables said: “FMEG industry new product volume growth was generally impacted by inflationary pressures as well as subdued consumer sentiment and destocking of case fans due to expected changes in BEE standards.”

Meanwhile, Finolex Cables said the Union Budget 2023 directly benefits various parts of the company. With a planned capex of Rs 10 lakh crore, up 33% year-on-year, it will see more developments across the country attracting more investors.

“This will improve the cash liquidity of the market, which will benefit the real estate sector. So, these changes will drive infrastructure housing, smart city projects, metros and the telecom sector (5G). So we see this as a good opportunity Finolex Cables has seen an increase in demand for various cables and other products,” management added.

The company will benefit from developments in the infrastructure housing sector, smart city projects, subways and telecommunications (5G).