Mehabe score: 2 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:FINCABLES Main Symbol:FINCABLES
Stock trades at 493.0, below its 50dma 517.42. However it is trading above its 200dma 487.22. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 517.42.
The 52 week high is at 608.65 and the 52week low is at 350.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– 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.360.25 Cr.
Competition
– The industry trades at a mean P/E of 35.7x. Ultracab India trades at the industry’s max P/E of 98.61x. FINCABLES trades at a P/E of 13.8x
– Industry’s mean G-Factor is 3.7 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 5.9%. The max 1- month return was given by Dynamic Cables: a return of 48.26 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 973.0 cr compared to Rs 830.0 cr for period ended Dec 2020, a rise of 17.2% .
vis-vis 109.0 for period ended Dec 2020 .
Operating Margins contracted -90.2 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 119.0 cr for period ended Dec 2021 and operating profit margin at 12.2 % for same period.
The EPS for quarter ended Dec 2021 is Rs 9.35 compared to Rs 9.47 for previous quarter ended Sep 2021 and Rs 9.61 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3503.0 cr for period ended TTM vis-vis sales of Rs 2768.0 cr for the period ended Mar 2021, a healthy growth of 21.0%. The 3 year sales cagr stood at 4.4%.
Net Profit reported at Rs 542.0 cr for period ended TTM vis-vis sales of Rs 461.0 cr for the period ended Mar 2021, rising 14.9%.
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 35% on a 1 Year basis vis-vis a return of 9% over the last 3 Years. – The compounded sales growth on a TTM bassis is 42% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is 74% vis-vis a compounded profit growth of 12% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 9.37% vis-vis 9.12% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 38.24% vis-vis 38.75% for Sep 2021
Conclusion
– has reduced debt.
– 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.360.25 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 below its 50 DMA 517.42 and is trading at 493.0. Shows a near term lack of buying interest.
