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Last Updated on: 15 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500940 | NSE: FINPIPE

Finolex Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 12:30 pm

Market Cap 17,581 Cr.
Current Price 283
High / Low356/190
Stock P/E36.5
Book Value 108
Dividend Yield0.87 %
ROCE10.4 %
ROE7.91 %
Face Value 2.00
PEG Ratio11.63

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

View Share Price Target for Finolex Industries Ltd

Competitors of Finolex Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Dutron Polymers Ltd 103 Cr. 172233/13641.9 47.10.87 %13.2 %9.55 % 10.0
Captain Polyplast Ltd 377 Cr. 68.086.0/30.224.1 17.20.00 %19.0 %20.6 % 2.00
Captain Pipes Ltd 221 Cr. 15.024.5/14.150.7 1.890.00 %25.0 %17.5 % 1.00
Caprihans India Ltd 198 Cr. 151239/131 3370.00 %1.54 %15.2 % 10.0
Ashish Polyplast Ltd 18.6 Cr. 54.895.4/18.117.1 20.90.00 %5.18 %3.47 % 10.0
Industry Average7,381.30 Cr291.0541.8286.030.19%13.67%13.51%7.57

All Competitor Stocks of Finolex Industries Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales9661,0831,0051,5951,1909411,1251,1411,1798831,0201,2351,140
Expenses7567837631,3301,0641,0841,0339241,0277809001,026934
Operating Profit210300242265126-14392217152103120209207
OPM %22%28%24%17%11%-15%8%19%13%12%12%17%18%
Other Income1532194012539282940633544472
Interest501811456912877
Depreciation20212122212222243427282726
Profit before tax200310239636118-12992216149126120219646
Tax %27%24%26%22%15%-27%22%27%26%25%26%26%22%
Net Profit147235178494100-94721581119489161505
EPS in Rs2.373.792.877.961.61-1.511.162.551.791.511.442.608.14

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2,1452,4532,4762,4822,6022,7383,0912,9853,4624,6474,3974,3174,279
Expenses1,7852,0562,2642,0752,0392,2532,4872,5362,4723,6234,1053,7333,640
Operating Profit3593972124075634846044489901,025293585638
OPM %17%16%9%16%22%18%20%15%29%22%7%14%15%
Other Income-63-27-2622425143072458121181613
Interest5166704515101211714273634
Depreciation5462595155617074788389116108
Profit before tax190242813735174395363939771,3852976131,110
Tax %28%30%41%32%32%32%35%18%25%24%20%26%
Net Profit136170482543522993503247281,053237455850
EPS in Rs2.192.740.774.105.684.815.645.2211.7316.983.817.3413.69
Dividend Payout %50%51%52%49%41%42%35%38%34%24%39%34%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)25.00%-71.76%429.17%38.58%-15.06%17.06%-7.43%124.69%44.64%-77.49%91.98%
Change in YoY Net Profit Growth (%)0.00%-96.76%500.93%-390.58%-53.64%32.11%-24.49%132.12%-80.05%-122.14%169.48%

Finolex Industries 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:6%
5 Years:7%
3 Years:8%
TTM:-2%
Compounded Profit Growth
10 Years:8%
5 Years:2%
3 Years:-17%
TTM:11%
Stock Price CAGR
10 Years:16%
5 Years:18%
3 Years:6%
1 Year:31%
Return on Equity
10 Years:14%
5 Years:14%
3 Years:11%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:31 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital124124124124124124124124124124124124124
Reserves5976666631,4462,1672,6402,4041,8062,9493,7404,7015,4146,582
Borrowings8397136372129410190283204278541394369
Other Liabilities4404334355675705896556039301,1198179961,189
Total Liabilities2,0011,9361,8592,3492,9553,4553,2732,8154,2075,2616,1826,9288,263
Fixed Assets8809058688508558849511,0171,0029931,0551,0551,038
CWIP5132107229090789441926
Investments3602211808171,2221,5551,3035801,5922,6333,8504,4565,881
Other Assets7117778016758569259291,2111,6041,6251,2341,3981,318
Total Assets2,0011,9361,8592,3492,9553,4553,2732,8154,2075,2616,1826,9288,263

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +274245212569252338391106941622308353
Cash from Investing Activity +6211018-7735-162-22849-877-440-294-83
Cash from Financing Activity +-356-344-239-494-282-175-163-105-90-190-29-277
Net Cash Flow-2012-9-241-051-26-8-15-6

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-480.00-316.00-425.00195.00469.00383.00514.00165.00786.00-277.00-248.00191.00

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 Days7673769916262539
Inventory Days1241121131001281281201641761328199
Days Payable472540555252554484603539
Cash Conversion Cycle84938048838174129108987198
Working Capital Days384954174145447344393746
ROCE %19%23%11%24%25%17%21%16%36%27%6%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters52.47%52.47%52.47%52.47%52.47%52.47%52.47%52.47%52.47%52.47%52.47%52.47%
FIIs5.74%5.81%5.69%5.59%5.40%5.51%5.81%6.66%6.45%6.41%6.90%6.40%
DIIs9.84%9.49%9.82%9.80%11.61%12.25%11.87%12.14%11.95%10.95%11.95%12.07%
Government0.00%0.00%0.00%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public31.61%31.88%31.68%31.76%30.15%29.39%29.48%28.37%28.76%29.82%28.32%28.69%
Others0.34%0.34%0.34%0.34%0.34%0.34%0.34%0.34%0.34%0.34%0.35%0.35%
No. of Shareholders2,25,0442,72,2822,75,0602,84,3472,48,0952,38,4042,31,9132,18,0942,26,8442,13,6792,11,5072,26,758

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Small Cap Fund34,595,6993.651125.9234,595,6992024-11-120%
HSBC Small Cap Fund - Regular Plan6,614,0491.31215.2534,595,6992024-11-12-80.88%
HDFC Small Cap Fund - Regular Plan6,091,8170.63198.2634,595,6992024-11-12-82.39%
Franklin India Smaller Companies Fund5,096,4501.18165.8634,595,6992024-11-12-85.27%
SBI Conservative Hybrid Fund2,476,1760.7979.8234,595,6992024-11-12-92.84%
SBI Conservative Hybrid Fund - Div (Annual)2,476,1760.7979.8234,595,6992024-11-12-92.84%
SBI Conservative Hybrid Fund - Div (Monthly)2,476,1760.7979.8234,595,6992024-11-12-92.84%
Canara Robeco Small Cap Fund2,144,8910.6169.8134,595,6992024-11-12-93.8%
SBI Equity Savings Fund1,795,1071.258.4234,595,6992024-11-12-94.81%
Mahindra Manulife Small Cap Fund1,538,6701.150.0834,595,6992024-11-12-95.55%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.0010.0010.00
Basic EPS (Rs.)7.664.0416.9411.8926.81
Diluted EPS (Rs.)7.664.0416.9411.8926.81
Cash EPS (Rs.)8.925.1018.3164.4130.69
Book Value[Excl.RevalReserv]/Share (Rs.)91.1279.2963.30252.94160.03
Book Value[Incl.RevalReserv]/Share (Rs.)91.1279.2963.30252.94160.03
Revenue From Operations / Share (Rs.)69.8271.1174.90279.03240.49
PBDIT / Share (Rs.)12.376.6917.8285.4838.46
PBIT / Share (Rs.)10.495.2416.4879.2232.52
PBT / Share (Rs.)9.904.8022.3178.6431.61
Net Profit / Share (Rs.)7.043.6616.9758.1524.75
NP After MI And SOA / Share (Rs.)7.664.0516.9459.4526.80
PBDIT Margin (%)17.719.4023.7930.6315.99
PBIT Margin (%)15.027.3722.0028.3913.52
PBT Margin (%)14.186.7529.7928.1813.14
Net Profit Margin (%)10.085.1422.6520.8310.28
NP After MI And SOA Margin (%)10.965.7022.6221.3011.14
Return on Networth / Equity (%)8.405.1126.7623.5016.74
Return on Capital Employeed (%)10.896.2924.6629.2718.34
Return On Assets (%)6.713.9819.6617.1811.50
Total Debt / Equity (X)0.060.100.070.060.14
Asset Turnover Ratio (%)0.640.760.970.970.97
Current Ratio (X)2.902.552.542.121.77
Quick Ratio (X)2.241.951.691.140.53
Inventory Turnover Ratio (X)3.923.442.902.182.76
Dividend Payout Ratio (NP) (%)0.0098.9923.600.0074.61
Dividend Payout Ratio (CP) (%)0.0073.0121.870.0061.06
Earning Retention Ratio (%)0.001.0176.400.0025.39
Cash Earning Retention Ratio (%)0.0026.9978.130.0038.94
Interest Coverage Ratio (X)20.9815.1878.49145.9242.32
Interest Coverage Ratio (Post Tax) (X)12.949.3249.03100.2628.22
Enterprise Value (Cr.)15601.9011024.149802.337772.765038.05
EV / Net Operating Revenue (X)3.612.512.112.241.69
EV / EBITDA (X)20.4026.668.867.3310.55
MarketCap / Net Operating Revenue (X)3.532.402.072.281.62
Retention Ratios (%)0.001.0076.390.0025.38
Price / BV (X)2.712.152.452.522.44
Price / Net Operating Revenue (X)3.532.402.072.281.62
EarningsYield0.030.020.100.090.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Finolex Industries Ltd as of November 15, 2024 is: 314.52

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 November 15, 2024, Finolex Industries Ltd is Undervalued by 11.14% compared to the current share price 283.00

Intrinsic Value of Finolex Industries Ltd as of November 15, 2024 is: 324.39

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 November 15, 2024, Finolex Industries Ltd is Undervalued by 14.63% compared to the current share price 283.00

Last 5 Year EPS CAGR: 3.14%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.58%, which is a positive sign.
  2. The company has higher reserves (2,751.92 cr) compared to borrowings (365.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.77 cr) and profit (358.46 cr) over the years.
  1. The stock has a high average Working Capital Days of 43.92, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 87.25, 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 Industries 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: 10.89% (Industry Average ROCE: 13.67%)
      • 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%: 8.4% (Industry Average ROE: 13.51%)
      • 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): 12.94
      • 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: 2.24
      • 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: 41.82)
      • 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: 0.06
      • 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 Industries Ltd. is a Public Limited Listed company incorporated on 28/03/1981 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L40108PN1981PLC024153 and registration number is 024153. Currently Company is involved in the business activities of Manufacture of plastic in primary forms (includes amino-resins, polyurethanes etc.). Company’s Total Operating Revenue is Rs. 4647.32 Cr. and Equity Capital is Rs. 124.10 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Plastics - Pipes & FittingsGat No. 399, Village Urse, Pune District Maharashtra 410506investors@finolexind.com
www.finolexpipes.com
Management
NamePosition Held
Mr. Prakash P ChhabriaExecutive Chairman
Mr. Ajit VenkataramanManaging Director
Mr. Saumya ChakrabartiDirector - Technical
Mrs. Ritu P ChhabriaNon Exe.Non Ind.Director
Mr. Saurabh S DhanorkarNon Exe.Non Ind.Director
Ms. Bhumika L BatraIndependent Director
Mrs. Kanchan U ChitaleIndependent Director
Dr. Deepak R ParikhIndependent Director
Mr. Pradeep R RathiIndependent Director
Mr. Anami N RoyIndependent Director

FAQ

What is the latest intrinsic value of Finolex Industries Ltd?

The latest intrinsic value of Finolex Industries Ltd as on 14 November 2024 is ₹314.52, which is 11.14% higher than the current market price of ₹283.00.

What is the Market Cap of Finolex Industries Ltd?

The Market Cap of Finolex Industries Ltd is 17,581 Cr..

What is the current Stock Price of Finolex Industries Ltd as on 14 November 2024?

The current stock price of Finolex Industries Ltd as on 14 November 2024 is ₹283.

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

In FY 2024, the High / Low of Finolex Industries Ltd stocks is 356/190.

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

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

What is the Book Value of Finolex Industries Ltd?

The Book Value of Finolex Industries Ltd is 108.

What is the Dividend Yield of Finolex Industries Ltd?

The Dividend Yield of Finolex Industries Ltd is 0.87 %.

What is the ROCE of Finolex Industries Ltd?

The ROCE of Finolex Industries Ltd is 10.4 %.

What is the ROE of Finolex Industries Ltd?

The ROE of Finolex Industries Ltd is 7.91 %.

What is the Face Value of Finolex Industries Ltd?

The Face Value of Finolex Industries 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 Industries 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