Finolex Industries Ltd would be a major beneficiary from the government’s focus on irrigation, providing piped water to all by 2024 and improvement in rural consumption in the long term.
Chirag Batavia • 30 March 2021
Finolex Industries Ltd
- FIL would be a major beneficiary from the government’s focus on irrigation, providing piped water to all by 2024 and improvement in rural consumption in the long term.
- The management has maintained positive demand outlook in the longer run in PVC pipes business and expects higher volume growth in non-agri category.
- FIL believes that there is an opportunity to gain market share as weaker companies (particularly from unorganized space) may find difficult to sail though in the current challenging macro environment.
- We believe that the higher spread and demand supply mismatch in PVC resin would positively impact resin margin in the near term. Margin outlook for Q4FY21 remains strong based on recent trends in PVC-EDC spread.
- We value the stock on sum of the parts (SoTP) basis and arrive at fair value of Rs730, where we value PVC pipes business at 15xFY23E EV/EBITDA (operating profit) and PVC Resin business at 7xFY23E EV/EBITDA.
Finolex Industries Ltd: ADD
Dated: 30 th March 2021
CMP: Rs.618
Fair Value: Rs.730
Potential Upside: 18.1%
Market Cap: Rs.7675 Cr
Time Frame: 12 months
Note: The above is a brief note on the company, based on the inputs of a PCG research report dated 3 rd February 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental .
Disclaimer:
http://bit.ly/2n5AxIE
Looking to invest in Finolex Industries Ltd and other Indian stocks? Open your trading account with
Lakshit Financial
Lakshit Financial Authorized Person of Kotak Securities Limited in cash segments of BSE & NSE and NSE F&O segments with NSE. Lakshit Financial registration number: BSE CASH AP0106730124228 | NSE CASH AP029177621 | NSE F&O AP029177621.Registered Office: Lakshit Financial, ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please refer the Risk Disclosure Document issued by SEBI and go through the Rights and Obligations and Do's and Dont's issued by Stock Exchanges and Depositories before trading on the Stock Exchanges.
DID YOU KNOW, as an
NRI
, you can invest in IPOs and purchase shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active Demat account in India on a repatriable or non-repatriable basis, based on your requirements.
Click here
to learn more about NRI Trading and Demat Account.
OPEN YOUR ACCOUNT NOW !
Fill in your details and we will get in touch with you.
Products and services available only for People of Indian Origin
Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC. Also, all calls with Lakshit Financial representatives may be recorded for internal quality & training purposes
Home First Finance (HOMEFIRST) Home First remains consistent on operational and financial parameters. Home First (HFFC) reported 24% earnings growth, with 19% net interest income growth in Q2FY25. Gross stage-3 ratio was flat qoq at 1.7%, stage-2 ratio declined 6 bps qoq to 1.1%. While other asset classes have reported mixed trends residential home loans, as an asset class, continues to stand tall. Home First, with 85% home loan exposure, is well-placed on the above. We expect the company to deliver 25% earnings CAGR for FY25-27E. We remain assertive with a BUY rating and FV of Rs1,360 (no change). Note: The above is a brief note on the company, based on the inputs of KIEresearch report dated 25111Oct, 2024, which is available onour website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamenta1. Disclaimer: http://bit.ly/2n5Ax1E https://www.kotaksecurities.oom/ksweb/research/kotak-research-reports/top-weekly-picks
