Wired for Growth

If you had invested in Finolex Cables a year ago, you would have doubled your investment. Does that mean that the stock has run its course? Far from it, Finolex is a long-term winner. Known for its electrical cables that bring in about two-third of the revenues, Finolex's cables have higher copper content and are more expensive than competitors'. Given this apparent constraint in a more-or-less commoditised market, Finolex has reported 22 per cent CAGR revenue growth in this segment in the last five years. The high copper content notwithstanding, Finolex's pricing power and strong brand recall give it a segment margin of 13 per cent - one of the highest in the organised sector. Finolex has its hands on other things. There is the copper rod business, where it sells copper rods and communicati

This article was originally published on July 10, 2015.