Finolex Industries Ltd
Sector : Plastic Products (PVC)
Great results in last two quarters of FY21, sales of PVC Pipes saw a significant increase but overall sales were largely boosted due to PVC resin sales.
Product Portfolio :
1) PVC Resin (raw material for manufacturing PVC products) - 45% of revenues.
2) PVC Pipes & Fittings - 55% of revenues.
The company is the only large vertically integrated player in the domestic market which produces its entire requirement of PVC resin.
CMP : 173 (near 52 week high)
Stock PE (ttm) : 14.6
Median PE : 19.6
Industry PE : 87
EPS from last two quarters : 9 (4.18+4.82)
Annual EPS (2020-21) : 11.9
EPS preceding year : 5.36
EBITDA margin (ttm) : 28.6%
Net Profit margin (ttm) : 20.9%
Book Value : 50.6
ROCE : 35.6%
ROE : 28.8%
Interest Coverage : 137
Promoter Holding : 52.5%
Promoter Holding Pledged : 0.02%
Dividend Yield : 1.15%
NEWS BUZZ : In an attempt to boost the business of Indian pipe manufacturing companies, the government has curbed the cheap import of 11 types of pipes till September 30, 2021.
STOCK VIEW : Stock may see 300-350 levels in coming months.