NSEI:FINCABLES

Stock Analysis Report

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Executive Summary

Finolex Cables Limited manufactures and sells electrical and communication cables, and other electrical appliances in India. More Details

Rewards

PE ratio (18.6x) is below the Indian market (19.5x)

Earnings are forecast to grow 22.57% per year

Pays a reliable dividend of 1.44%

Risk Analysis

No risks detected for FINCABLES from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Finolex Cables's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FINCABLES is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FINCABLES's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-9.5%

FINCABLES

-1.9%

IN Electrical

-0.3%

IN Market


1 Year Return

-9.4%

FINCABLES

13.3%

IN Electrical

15.9%

IN Market

Return vs Industry: FINCABLES underperformed the Indian Electrical industry which returned 13.4% over the past year.

Return vs Market: FINCABLES underperformed the Indian Market which returned 15.9% over the past year.


Shareholder returns

FINCABLESIndustryMarket
7 Day-9.5%-1.9%-0.3%
30 Day7.3%7.5%4.9%
90 Day39.3%43.4%24.5%
1 Year-7.6%-9.4%14.1%13.3%18.0%15.9%
3 Year-46.6%-48.6%-13.1%-17.8%9.7%4.4%
5 Year79.2%70.3%37.1%29.2%82.1%68.4%

Long-Term Price Volatility Vs. Market

How volatile is Finolex Cables's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Finolex Cables undervalued compared to its fair value and its price relative to the market?

18.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FINCABLES (₹381.05) is trading above our estimate of fair value (₹37.53)

Significantly Below Fair Value: FINCABLES is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FINCABLES is good value based on its PE Ratio (18.6x) compared to the IN Electrical industry average (23x).

PE vs Market: FINCABLES is good value based on its PE Ratio (18.6x) compared to the Indian market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: FINCABLES is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: FINCABLES is overvalued based on its PB Ratio (1.9x) compared to the IN Electrical industry average (1x).


Next Steps

Future Growth

How is Finolex Cables forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FINCABLES's forecast earnings growth (22.6% per year) is above the savings rate (7%).

Earnings vs Market: FINCABLES's earnings (22.6% per year) are forecast to grow slower than the Indian market (25.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FINCABLES's revenue (23.5% per year) is forecast to grow faster than the Indian market (11.7% per year).

High Growth Revenue: FINCABLES's revenue (23.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FINCABLES's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Finolex Cables performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FINCABLES has high quality earnings.

Growing Profit Margin: FINCABLES's current net profit margins (13.3%) are lower than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: FINCABLES's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: FINCABLES's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FINCABLES had negative earnings growth (-29%) over the past year, making it difficult to compare to the Electrical industry average (-17.4%).


Return on Equity

High ROE: FINCABLES's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is Finolex Cables's financial position?


Financial Position Analysis

Short Term Liabilities: FINCABLES's short term assets (₹22.4B) exceed its short term liabilities (₹2.9B).

Long Term Liabilities: FINCABLES's short term assets (₹22.4B) exceed its long term liabilities (₹1.7B).


Debt to Equity History and Analysis

Debt Level: FINCABLES is debt free.

Reducing Debt: FINCABLES has no debt compared to 5 years ago when its debt to equity ratio was 3.7%.

Debt Coverage: FINCABLES has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FINCABLES has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Finolex Cables's current dividend yield, its reliability and sustainability?

1.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FINCABLES's dividend (1.44%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: FINCABLES's dividend (1.44%) is low compared to the top 25% of dividend payers in the Indian market (1.81%).


Stability and Growth of Payments

Stable Dividend: FINCABLES's dividends per share have been stable in the past 10 years.

Growing Dividend: FINCABLES's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.8%), FINCABLES's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Finolex Cables has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Deepak Chhabria
Executive Chairman7.5yrs₹86.40m1.23%
₹ 719.2m
Richard D'Silva
President of Legal & Company Secretaryno data₹4.70mno data
Gayatri Kulkarni
Compliance Officer2.25yrsno datano data
Sunil Upmanyu
Executive Director0.33yrno datano data
Vijay Chhabria
Managing Director of Finolex Plasson Industries Limited10.83yrs₹14.17m0.35%
₹ 205.5m

2.3yrs

Average Tenure

Experienced Management: FINCABLES's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Deepak Chhabria
Executive Chairman7.5yrs₹86.40m1.23%
₹ 719.2m
Sunil Upmanyu
Executive Director0.33yrno datano data
Padmanabh Barpande
Non-Executive Independent Director0.33yrno datano data
Avinash Khare
Non-Executive Independent Director0.33yrno datano data
Prasad Deshpande
Non-Executive Director0.33yrno datano data
Firoza Kapadia
Non-Executive Independent Director0.33yrno datano data

0.3yrs

Average Tenure

62yo

Average Age

Experienced Board: FINCABLES's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Finolex Cables Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Finolex Cables Limited
  • Ticker: FINCABLES
  • Exchange: NSEI
  • Founded: 1958
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: ₹58.278b
  • Shares outstanding: 152.94m
  • Website: https://www.finolex.com

Number of Employees


Location

  • Finolex Cables Limited
  • 26-27, Mumbai-Pune Road
  • Pimpri
  • Pune
  • Maharashtra
  • 411018
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FINOLBDL (Bourse de Luxembourg)GDR-REPR 1 ORD INR10 REG'SLUUSDAug 1994
500144BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
FINCABLESNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995

Biography

Finolex Cables Limited manufactures and sells electrical and communication cables, and other electrical appliances in India. The company operates through Electrical Cables, Communication Cables, Copper Rod...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 12:17
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.