Finolex Industries Ltd. share price target

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...