Finolex Industries Ltd. share price target

Finolex Industries Ltd. (FIL) is India's leading manufacturer of PVC Pipes & Fittings and the third largest PVC Resin manufacturer. Headquartered in Pune, FIL operates through its state of the art manufacturing plants located in Pune, Ratnagiri in Maharashtra and Masar in Gujarat.FIL operates in 2 key business segments- a) PVC pipes and fittings wherein it offers manufactures a wide range of products catering to the agriculture and non-agriculture sectors. & b) PVC resin the company manufactures PVC resin providing consistent raw...

We have reduced SOTP TP to Rs 801 (vs. Rs 912) including value for investment in Finolex Cables 4QFY18 was again a muted quarter for Finolex Industries (Finolex); net revenues stood at Rs 8.09bn (-8.8% YoY). Gross margins improved by 777bps YoY to 41.0% due to better PVC-EDC spreads and inventory gains in line with rising crude prices. This drove up EBITDA margins by 311bps YoY to 23.2%.

Finolex Industries Ltd. (FIL) has reported Q4FY18 revenues at INR 709cr de-grew ~9% y-o-y (adjusting for excise taxes), below our estimates, due to de-growth in Pipe & fittings sales by (2.2)% y-o-y.

Strong pipes & fitting business volume growth; Positive delta lifts profits PVC pipes & fittings volume rose 12% YoY to 71,759MT while resin volume declined 6% to 72,123MT. Further, PVC resins margin expanded 388bps YoY to 24.5% due to positive PVC-EDC spread. Consequently, EBITDA margin improved 312bps YoY to...

Various Government of India sponsored schemes of a motley of outlay and focus - from PMAY which centers on both subsidized rural and urban housing to AMRUT that focuses on strengthening urban infrastructure including water supplies to PMKSY that lays impetus on irrigation sector to Swachh Bharat Mission that mainly emphasizes on building toilets in rural and urban areas. All these schemes not only patently boost demand for both agri and non-agri pipes but also help migration of value added products cpvc products case in point. Unbridled demand for pvc resin in India largely emanating from irrigation...

Finolex Industries Ltd. (FININD) is India's largest PVC pipes manufacturer (28% organized market share) and the second largest PVC resin manufacturer.

Q3 revenue increased 9% YoY on 50% YoY volume growth in pipes and fittings. However, EBITDA declined 13% YoY to Rs 1.1 bn due to discounts in pipes division to counter impact of GST.

Maintain BUY. Our SOTP TP including value for holding in Finolex Cables stands at Rs 861. 3QFY18 was again a muted quarter for Finolex Industries (Finolex), as (1) Despite volume growth (50% YoY in Pipes & Fittings and 101% YoY in PVC resin), overall revenues grew by 25.4% YoY to Rs 7.22bn, and (2) But, the realisation per tonne declined in both segments (-48% YoY in PVC resin to Rs 40/kg and -20% YoY in Pipes & Fittings to Rs 86/kg), which weighed on the companys overall performance.

Finolex Industries Ltd. (FIL) has reported Q3FY18 revenues at INR 723cr grew ~25% y-o-y (excluding duties and taxes), driven by healthy sales growth in Pipe & fittings (up ~35% y-o-y) and...

Finolex Industries (FIL) reported below expected result in Q3FY18 led by lower than expected margins on PVC resins due to contraction in PVC-EDC delta. However, the company reported strong 36% volume growth which came ahead of our estimates. Revenue increased 9% YoY to Rs7.2 bn, EBITDA margin declined 429bps to 15.7% while net profit decreased 6% YoY to Rs695 mn. Overall, PVC resin volume grew...

Finolex Industries' Q2FY18 revenue (excluding excise duty) increased 4% YoY on 24% YoY volume growth in pipes and fittings. However, EBITDA was lower 43% YoY to Rs 496 mn due to (1) discounts in pipes & fittings division that impacted profit by Rs 115 mn

Finolex Industries Ltd. (FIL) has reported weak number due to correction in pipe & fittings realisation, plants shut down for 21 days which happen once in three years, increase in coal...

Maintain BUY. Our SOTP TP stands at Rs 861 2QFY18 was a muted quarter for Finolex Industries (Finolex), as (1) Despite volume growth (23% YoY in Pipes & Fittings and 2% YoY in PVC resin), overall revenues grew marginally by 4% YoY to Rs 4.7bn, and (2) Realisation per tonne declined in both segments (-2% YoY in PVC resin to ~68/kg and -16% YoY in Pipes & Fittings to ~Rs 90/kg) , (3) The plant shutdown in Q2FY18 led to a ~Rs 360mn increase in costs, which weighed on the companys overall performance.

Price cuts in PVC pipes dented margin for the pipe division and negated the strong performance displayed by the PVC division wherein EDC-PVC spread continued to be firm.

Finolex Industries Ltd. (FIL) reported weaker set of numbers in Q1FY18 led by higher price discounts and inventory losses owing to fall in PVC prices. Revenue increased 6% YoY to Rs8.2 bn, EBITDA margin declined 465bps to 15.8% while net profit decreased 19% YoY to Rs798 mn. Overall, PVC resin volume grew 20% to 74,998MT while PVC pipes & fittings increased 8.2% YoY to 71,518MT. Overall, PVC resin revenue increased 22% while PVC pipes & fitting grew 5%. We are cutting FY18/FY19 PAT estimates by 11.6%/7.9% on the back of lower than expected result. However, improvement in PVC-EDC delta, strengthening CPVC and...

Finolex Industries Ltd. (FIL) has reported Q1FY18 revenues at INR 824cr (up ~6% YoY) inline with our estimates. The sales growth was on account of improvement in PVC pipes & fittings/PVC...

Finolex Industries 'Q4FY17 PAT increased 50% YoY to Rs 1.2 bn on firm EDC-PVC spread (Rs 15,000/ MT vs. Rs 6,600/ MT in Q4FY16) leading to doubling of EBIT for PVC segment (~60% of FY17 EBIT).

Finolex Industries Ltd. (FIL) Q4FY17 reported revenues at INR 1,016cr, (up ~10% YoY) on account of improvement in PVC pipes & fittings/PVC resin realization by ~17%/31% y-o-y,...

Finolex Industries (Finolex) is a key branded player in the organised PVC pipes market in India, enjoying a volume market share of ~19%. Its pipes and fittings capacity is 280k TPA, in a growing national market of 1,800k TPA. Only 60% of this market is organised.

Finolex Industries fared relatively well in the face of demonetization with pipe volume down a mere 4% YoY at ~41,000 MT. Firm EDC-PVC spread led to doubling of EBIT in PVC segment (~60% of revenue) to Rs 16,600/MT (the highest ever), leading to 69% growth in PAT to Rs 719 mn.