Finolex Industries Ltd. share price target

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...