Mehabe score: 3 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
Finolex Cables Limited is a leading manufacturer of electrical and telecommunication cables in India. Operating for more than 50 years, Finolex has been able to maintain its leadership position as one of the most diversified wires and cables companies in the country.Site:FINCABLESMain Symbol:FINCABLES
Stock trades at 505.0, above its 50dma 489.08. It also trades above its 200dma 436.14. The stock remains bullish on techicals
The 52 week high is at 557.70 and the 52week low is at 266.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 18.88%
Weakness
– The company has delivered a poor sales growth of 3.24% over past five years.
-Earnings include an other income of Rs.323.09 Cr.
Competition
– The industry trades at a mean P/E of 39.1x. Ultracab India trades at the industry’s max P/E of 71.2x. FINCABLES trades at a P/E of 15.3x
– Industry’s mean G-Factor is 3.9 while the mean Piotski score is 7.0. FINCABLES has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is -4.0%. The max 1- month return was given by KEI Industries: a return of 5.75 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 675.0 cr compared to Rs 377.0 cr for period ended Jun 2020, a rise of 79.0%
Operating Profits reported at Rs 70.0 cr for period ended Jun 2021 vis-vis 35.0 for period ended Jun 2020 .
Operating Margins expanded 108.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 5.68 compared to Rs 10.96 for previous quarter ended Mar 2021 and Rs 2.91 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3066.0 cr for period ended TTM vis-vis sales of Rs 2768.0 cr for the period ended Mar 2021, a growth of 9.7%. The 3 year sales cagr stood at -0.1%.
Net Profit reported at Rs 504.0 cr for period ended TTM vis-vis sales of Rs 461.0 cr for the period ended Mar 2021, rising 8.5%.
Company recorded a Net Profit CAGR of 7.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 14.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 84% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is 25% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is 49% vis-vis a compounded profit growth of 12% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 9.12% vis-vis 9.29% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 38.75% vis-vis 38.2% for Jun 2021
Conclusion
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 18.88% – The company has delivered a poor sales growth of 3.24% over past five years.
-Earnings include an other income of Rs.323.09 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 489.08 and is trading at 505.0, thus bullish price action wise.
