Mehabe score: 5 G Factor: 6 Piotski Score: 8 The stock has a rating . 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 6 and Piotski score of 8.
Description
Finolex Industries Limited (FIL) is a leading manufacturer of PVC Resin and the largest producer of PVC Pipes & Fittings in India. The Company offers the latest range of superior quality and durable PVC-U pipes and fittings used in agriculture, construction and industrial operations. Its product portfolio consists of two major divisions:
PVC Resin
PVC Pipes & Fittings Site:FINOLEXIND Main Symbol:FINOLEXIND
Stock trades at 193.0, below its 50dma 202.77. However it is trading above its 200dma 185.76. 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 202.77.
The 52 week high is at 268.00 and the 52week low is at 114.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 25.92% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 35.95%
Weakness
– The company has delivered a poor sales growth of 6.89% over past five years.
Competition
– The industry trades at a mean P/E of 27.7x. Responsive Ind trades at the industry’s max P/E of 272.93x. FINOLEXIND trades at a P/E of 14.0x
– Industry’s mean G-Factor is 3.7 while the mean Piotski score is 9.0. FINOLEXIND has a G-Factor of 6 and Piotski scoreof 8.
– Average 1 month return for industry is 9.5%. The max 1- month return was given by Responsive Ind: a return of 80.23 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 1005.0 cr compared to Rs 1066.0 cr for period ended Dec 2020, a fall of 5.7%
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vis-vis 346.0 for period ended Dec 2020 .
Operating Margins contracted -837.8 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 242.0 cr for period ended Dec 2021 and operating profit margin at 24.1 % for same period.
The EPS for quarter ended Dec 2021 is Rs 2.87 compared to Rs 3.79 for previous quarter ended Sep 2021 and Rs 4.12 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4303.0 cr for period ended TTM vis-vis sales of Rs 3463.0 cr for the period ended Mar 2021, a healthy growth of 19.5%. The 3 year sales cagr stood at 11.7%.
Operating margins shrank to 27.0% for period ended TTM vis-vis 29.0% for period ended Mar 2021, contraction of 200.0 bps.
Net Profit reported at Rs 857.0 cr for period ended TTM vis-vis sales of Rs 728.0 cr for the period ended Mar 2021, rising 15.1%.
Company recorded a healthy Net Profit CAGR of 34.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 941.0 cr for period ended Mar 2021 vis-vis Rs 106.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 29.0% compared to 19.0% over the last 3 Years. – The stock has given a return of 66% on a 1 Year basis vis-vis a return of 22% over the last 3 Years. – The compounded sales growth on a TTM bassis is 44% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is 76% vis-vis a compounded profit growth of 35% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 5.74% vis-vis 4.31% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 31.61% vis-vis 32.2% for Sep 2021
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has delivered good profit growth of 25.92% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 35.95% – The company has delivered a poor sales growth of 6.89% over past five years.
