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Last Updated on: 17 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500144 | NSE: FINCABLES

Finolex Cables Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 16, 2024, 11:51 pm

Market Cap 20,532 Cr.
Current Price 1,342
High / Low1,700/831
Stock P/E36.5
Book Value 275
Dividend Yield0.60 %
ROCE18.7 %
ROE14.2 %
Face Value 2.00
PEG Ratio5.03

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Finolex Cables Ltd

Competitors of Finolex Cables Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindusthan Urban Infrastructure Ltd 394 Cr. 2,7303,550/1,948 2,1300.00 %1.90 %7.09 % 10.0
Dynamic Cables Ltd 1,350 Cr. 558680/33735.6 97.20.09 %24.1 %19.3 % 10.0
Cybele Industries Ltd 49.4 Cr. 46.261.0/23.8 55.50.00 %1.56 %0.16 % 10.0
BC Power Controls Ltd 31.8 Cr. 4.557.27/3.61265 5.830.00 %4.88 %1.79 % 2.00
Advait Infratech Ltd 1,946 Cr. 1,8022,260/35275.7 73.00.08 %39.6 %33.6 % 10.0
Industry Average20,402.11 Cr1,724.35101.30373.090.18%16.21%13.22%8.00

All Competitor Stocks of Finolex Cables Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales9216759339731,1871,0161,0911,1501,2241,2041,1871,2221,401
Expenses7906058138641,0709029981,0091,0771,0601,0431,0891,242
Operating Profit1317012010911711493141148144144133159
OPM %14%10%13%11%10%11%9%12%12%12%12%11%11%
Other Income161698192017106334239854550
Interest0000100010001
Depreciation111010109911111510111112
Profit before tax13676207117126121188163174172217167196
Tax %30%27%28%19%17%21%27%17%22%23%24%23%25%
Net Profit96551509510596137135135132165128146
EPS in Rs6.283.609.796.226.846.258.948.828.808.6510.818.359.56

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2,2712,3592,4492,3602,4452,8153,0782,8772,7683,7684,4815,014
Expenses2,0412,1112,1892,0212,0732,3922,6222,5072,4133,3523,9864,434
Operating Profit230248260339371423455370355416496581
OPM %10%11%11%14%15%15%15%13%13%11%11%12%
Other Income159816410012711817277151198218
Interest131414941121212
Depreciation474864584844413939394644
Profit before tax171244263336419504532501392527646753
Tax %15%15%25%26%25%29%35%20%28%23%22%24%
Net Profit145208199249316358344402283405502572
EPS in Rs9.5013.5812.9916.2720.6523.4222.5026.3218.5026.4632.8137.37
Dividend Payout %13%12%14%15%15%17%20%21%30%23%21%21%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)43.45%-4.33%25.13%26.91%13.29%-3.91%16.86%-29.60%43.11%23.95%13.94%
Change in YoY Net Profit Growth (%)0.00%-47.78%29.45%1.78%-13.62%-17.20%20.77%-46.46%72.71%-19.16%-10.01%

Finolex Cables Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:10%
3 Years:22%
TTM:8%
Compounded Profit Growth
10 Years:11%
5 Years:10%
3 Years:26%
TTM:4%
Stock Price CAGR
10 Years:20%
5 Years:30%
3 Years:39%
1 Year:46%
Return on Equity
10 Years:14%
5 Years:13%
3 Years:14%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital313131313131313131313131
Reserves8941,0731,2341,5651,8472,1632,4092,6882,9203,2333,6794,175
Borrowings181147127511118791418
Other Liabilities299314242272297281329285294328360404
Total Liabilities1,4041,5641,6341,9182,1762,4762,7693,0123,2523,6004,0834,628
Fixed Assets412496464432415409404387394380435444
CWIP361173851027268721168
Investments3244034947008961,2151,3827269371,1201,7132,576
Other Assets6326546697838578479731,8721,8942,0131,9151,439
Total Assets1,4041,5641,6341,9182,1762,4762,7693,0123,2523,6004,0834,628

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 149224183276213236154309114473356577
Cash from Investing Activity -32-67-186-127-126-134-110587-859-378-225-440
Cash from Financing Activity -46-61-39-68-75-57-75-86-86-87-97-112
Net Cash Flow7196-43811144-30810-83183526

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow49.00101.00133.00288.00370.00422.00454.00362.00348.00407.00482.00563.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days242218191923252423171813
Inventory Days72746570989095104134806953
Days Payable141113194032342831232122
Cash Conversion Cycle83866970768086100126746645
Working Capital Days5340344550607383202159120227
ROCE %20%20%18%21%24%25%23%19%14%17%19%19%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters35.92%35.92%35.92%35.92%35.92%35.92%35.92%35.92%35.92%35.92%35.92%35.86%
FIIs9.12%9.37%9.36%9.25%9.74%10.22%10.78%11.25%11.77%11.06%11.58%11.64%
DIIs16.22%16.47%15.73%15.28%18.31%18.10%17.03%15.56%15.58%15.93%15.87%16.83%
Public38.75%38.24%39.00%39.56%36.04%35.77%36.28%37.27%36.73%37.09%36.65%35.66%
No. of Shareholders80,26681,19090,84297,01299,80894,6521,00,1231,25,3441,28,5131,25,3511,28,4401,12,071

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund2,914,2220.8454.44808,1602024-10-14260.6%
HDFC Childrens Gift Fund - Regular Plan1,923,1433.18299.89808,1602024-10-14137.97%
HSBC Small Cap Fund - Regular Plan1,903,6451.81296.85808,1602024-10-14135.55%
HSBC Value Fund1,511,5351.76235.71808,1602024-10-1487.03%
Franklin India Smaller Companies Fund1,393,8981.55217.36808,1602024-10-1472.48%
Nippon India Multi Cap Fund1,008,1420.45157.21808,1602024-10-1424.75%
Tata Small Cap Fund900,7001.79140.46808,1602024-10-1411.45%
DSP ELSS Tax Saver Fund808,1600.77126.02808,1602024-10-140%
Nippon India Flexi Cap Fund762,5811.53118.92808,1602024-10-14-5.64%
HSBC Infrastructure Fund539,7003.0384.16808,1602024-10-14-33.22%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)42.6132.9739.1830.1725.57
Diluted EPS (Rs.)42.6132.9739.1830.1725.57
Cash EPS (Rs.)35.9231.4320.3318.1123.03
Book Value[Excl.RevalReserv]/Share (Rs.)323.36285.74256.43223.24196.38
Book Value[Incl.RevalReserv]/Share (Rs.)323.36285.74256.43223.24196.38
Revenue From Operations / Share (Rs.)327.85292.98246.36180.98188.12
PBDIT / Share (Rs.)49.9241.0032.6929.2431.05
PBIT / Share (Rs.)47.0537.9730.1526.6928.51
PBT / Share (Rs.)46.9237.8930.0526.6428.41
Net Profit / Share (Rs.)33.0528.3917.7915.5620.49
NP After MI And SOA / Share (Rs.)42.6132.9739.1730.1725.56
PBDIT Margin (%)15.2213.9913.2616.1516.50
PBIT Margin (%)14.3512.9512.2314.7415.15
PBT Margin (%)14.3112.9312.1914.7115.09
Net Profit Margin (%)10.089.697.228.5910.89
NP After MI And SOA Margin (%)12.9911.2515.9016.6713.58
Return on Networth / Equity (%)13.1711.5315.2713.5113.01
Return on Capital Employeed (%)13.5812.4610.9711.2313.76
Return On Assets (%)11.5610.1213.3311.8711.47
Asset Turnover Ratio (%)0.941.041.010.830.93
Current Ratio (X)10.5610.039.539.358.66
Quick Ratio (X)8.847.937.306.336.18
Inventory Turnover Ratio (X)6.105.213.973.163.43
Dividend Payout Ratio (NP) (%)0.0018.1914.0418.2217.60
Dividend Payout Ratio (CP) (%)0.0016.6613.1816.8016.00
Earning Retention Ratio (%)0.0081.8185.9681.7882.40
Cash Earning Retention Ratio (%)0.0083.3486.8283.2084.00
Interest Coverage Ratio (X)376.13505.73328.89588.38306.40
Interest Coverage Ratio (Post Tax) (X)250.05351.23179.99314.21203.20
Enterprise Value (Cr.)15213.5212344.185740.065771.692176.70
EV / Net Operating Revenue (X)3.032.751.522.090.75
EV / EBITDA (X)19.9219.6811.4812.914.58
MarketCap / Net Operating Revenue (X)3.052.771.532.101.08
Retention Ratios (%)0.0081.8085.9581.7782.39
Price / BV (X)3.092.841.471.711.04
Price / Net Operating Revenue (X)3.052.771.532.101.08
EarningsYield0.040.040.100.070.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Finolex Cables Ltd as of October 16, 2024 is: ₹1,433.88

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 16, 2024, Finolex Cables Ltd is Undervalued by 6.85% compared to the current share price ₹1,342.00

Intrinsic Value of Finolex Cables Ltd as of October 16, 2024 is: ₹1,538.01

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 16, 2024, Finolex Cables Ltd is Undervalued by 14.61% compared to the current share price ₹1,342.00

Last 5 Year EPS CAGR: 7.26%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.92%, which is a positive sign.
  2. The company has higher reserves (2,323.33 cr) compared to borrowings (47.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.58 cr) and profit (440.67 cr) over the years.
  1. The stock has a high average Working Capital Days of 95.50, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 80.08, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Finolex Cables Ltd:
    1. Net Profit Margin: 10.08%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.58% (Industry Average ROCE: 16.21%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.17% (Industry Average ROE: 13.22%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 250.05
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 8.84
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 36.5 (Industry average Stock P/E: 101.3)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Finolex Cables Ltd. is a Public Limited Listed company incorporated on 05/06/1967 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L31300MH1967PLC016531 and registration number is 016531. Currently Company is involved in the business activities of Manufacture of other electronic and electric wires and cables. Company’s Total Operating Revenue is Rs. 3768.14 Cr. and Equity Capital is Rs. 30.59 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cables - Power/Others26-27, Mumbai-Pune Road, Pimpri, Pune Maharashtra 411018investors@finolex.com
http://www.finolex.com
Management
NamePosition Held
Mr. Deepak ChhabriaExecutive Chairman
Mr. Ratnakar Prakash BarveExecutive Director - Operations
Mr. Nikhil Manohar NaikNon Executive Director
Mr. Zubin Framroze BillimoriaIndependent Director
Mr. Sriraman RaghuramanIndependent Director
Mrs. Vanessa SinghIndependent Woman Director

FAQ

What is the latest fair value of Finolex Cables Ltd?

The latest fair value of Finolex Cables Ltd is ₹1433.88.

What is the Market Cap of Finolex Cables Ltd?

The Market Cap of Finolex Cables Ltd is 20,532 Cr..

What is the current Stock Price of Finolex Cables Ltd as on 16 October 2024?

The current stock price of Finolex Cables Ltd as on 16 October 2024 is ₹1,342.

What is the High / Low of Finolex Cables Ltd stocks in FY 2024?

In FY 2024, the High / Low of Finolex Cables Ltd stocks is 1,700/831.

What is the Stock P/E of Finolex Cables Ltd?

The Stock P/E of Finolex Cables Ltd is 36.5.

What is the Book Value of Finolex Cables Ltd?

The Book Value of Finolex Cables Ltd is 275.

What is the Dividend Yield of Finolex Cables Ltd?

The Dividend Yield of Finolex Cables Ltd is 0.60 %.

What is the ROCE of Finolex Cables Ltd?

The ROCE of Finolex Cables Ltd is 18.7 %.

What is the ROE of Finolex Cables Ltd?

The ROE of Finolex Cables Ltd is 14.2 %.

What is the Face Value of Finolex Cables Ltd?

The Face Value of Finolex Cables Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Finolex Cables Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE