Finolex Industries Ltd. share price target

Profitability improves with margins improvement

Finolex Industries Ltd. (FIL) reported strong performance in Q2FY17 at both operating and earnings level but drop in volume was a disappointment. Though it reported 2% fall in revenue, EBITDA income grew 13% YoY while lower-than-expected interest outgo boosted adjusted earnings by 226% YoY to Rs513 mn. Due to slowdown in economic activities, the company's PVC pipes & fitting business volume saw a decline of 6% YoY to 38.3KT mainly led by lower demand growth from non-agriculture segment. However, due to widening PVC-EDC delta and lower power cost, FIL's EBITDA margin expanded 260bps YoY to 19%. Further, due to significant debt reduction, interest expense was down by 80% YoY to Rs33 mn. Due to demonetization, the...

Finolex Industries Ltd. (FIL) reported strong performance at both operating and earnings level. Though it reported just 6% revenue growth (slightly below our estimate), EBITDA income grew significantly by 25% YoY (better than our estimate) while lower-than-expected interest outgo boost earnings by 36% YoY to Rs980 mn. With the better demand recovery, the company's PVC pipes & fitting business volume saw a strong 14% YoY growth to 66.1KT mainly led by strong agriculture growth. Also, due to widening PVC-EDC delta and lower power cost, FIL's EBITDA margin expanded 357bps YoY to highest ever 23.7%. Further, due to significant debt reduction, interest expense was down by 68% YoY to Rs50 mn. We expect company to report...

Finolex Industries, a Pune based, India's largest backward integrated pipe & fittings manufacturer player having 280,000 MT p.a production capacity. It is also one of the largest PVC resin manufacturer player with 272,000 MT p.a production capacity. FIL has two manufacturing plants viz Ratnagiri in Maharashtra and Masar, near Vadodara in Gujarat. FIL enjoys the leadership position and sells their product over a network of 16,000 direct & indirect retail outlet. Finolex PVC pipes and fittings are available in vast range for diverse applications in agriculture, housing as...

FIL clocked a turnover of Rs.7846mn during Q4FY15 registered a growth of 22% Q-o-Q basis but de-grew by 7% on Y-o-Y basis. EBITDA has turned positive from ngative on Q-o-Q basis and de-grew by 33% on Y-oY basis. On segmental basis, it has reported growth in every segment on Y-o-Y basis with 178% increase in power segment, but the inter-segment transfer up by 55% which brought down the total reported revenue.

Finolex industries is the largest manufacturer of rigid PVC Pipes and Fittings. It is also one the biggest manufacturer of PVC resins and has three manufacturing plants at Pune, Ratnagiri and Masar. The company's total production capacity of the PVC pipes & Fittings business stands at 2,30,000 MT and that of PVC Resin at 2,72,000 MT.

Finolex Industries Ltd (FIL) is the 2nd largest player in the PVC resin segment and the largest manufacturer of PVC pipes and fittings in India. It is the only PVC pipe manufacturer with its...