Finolex Cables Ltd. share price target

Finolex Cables Ltd (FCL) is India's largest manufacturer of electrical (80% of revenue) and telecommunication cables (16%). FCL has a wide distribution network with a high brand recall. Q4FY20 revenue & EBITDA de-grew by 21% & 31% YoY, but PAT grew by 38% YoY led by higher other income & lower tax....

Finolex Cables Limited (Finolex) reported weak results for Q2FY2020. Revenue remained flat y-o-y (4% below our estimates) due to lower offtake from the automobile, industrial and communication sectors. The electrical cable segment's revenue increased by 4.6% y-o-y, affected by slowdown in the automobile and industrial sectors, while electrical wires and agri applications witnessed healthy volume growth. The communication cable segment continued to disappoint with revenue declining by 17.9% y-o-y, wherein optic fibre cable (OFC) volumes were impacted by slowdown in...

Finolex reported weak results wherein revenues grew by merely 2.1% (6% below our estimates) due to lower volume growth of 3% y-o-y in electrical wires hit by subdued construction activity and deceleration in OFC in communication segment. EBITDA declined 18% on higher other expenses including higher promotional expenses in its fast moving electronic goods (FMEG) segment leading to contraction of 328 bps y-o-y in EBIDTA margin to 13.1%. However, due to lower ETR (31% v/s 35% in Q1FY19) the decline in PAT was restricted to 10% y-o-y to Rs...

(up 3.4% y-o-y), led by a marginal growth in electrical cable segment (up 6% y-o-y, over 80% of revenue) and new products (lup 10.4% y-o-y with less than 5% share) and decline in communication cable segment's revenue (down 15.4% y-o-y). Volumes in the electrical cables business grew by 18% y-o-y, while power cable volumes fell marginally. The communication...

Limited (FCL) is expected to witness further delay in tendering of orders in the Bharat Net phase II and the time-frame for tendering these orders is still not clear. Going ahead, the impending elections will further slow the tendering process. In the consumer durables segment, demand pick-up is still slow and management's earlier target of Rs. 100 crore...

Finolex Cables Ltd (FCL) is India's largest manufacturer of electrical (80% of revenue) and telecommunication cables (16%). FCL has a wide distribution network with a high brand recall....

Volumes Impacted but Set to Recover in H2FY19: Finolex top line grew marginally by 3.8% YoY on the back of strong performance from communication cables which grew by 14.3%. The growth was lower due to tepid performance of electrical segment.

Finolex Cables Ltd (FCL) is India's largest manufacturer of electrical (80% of revenue) and telecommunication cables (16%). FCL has a wide distribution network with a high brand recall. Q1FY19 revenue and EBITDA grew by robust 17% & 18% YoY respectively, but PAT declined by 11% YoY owing to higher tax expenses. EBITDA margin improved by 10bps YoY to 16.4% led by lower cost....

Higher Tax Provision Impacted Bottom Line; Finolex top line grew by 6.4% YoY on the back of strong performance from Electrical cables which grew by 11.6%.

Volume and Revenue Growth Across Segments: Finolex top line grew by 12.2% YoY on the back of strong performance from communication cable which grew by 16.6% and electrical cable showing a growthof 7.5%.