NSEI:FINCABLES

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with solid track record 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

18.7%

FINCABLES

12.8%

IN Electrical

8.2%

IN Market


1 Year Return

-48.7%

FINCABLES

-36.5%

IN Electrical

-18.2%

IN Market

Return vs Industry: FINCABLES underperformed the Indian Electrical industry which returned -37.9% over the past year.

Return vs Market: FINCABLES underperformed the Indian Market which returned -19.9% over the past year.


Shareholder returns

FINCABLESIndustryMarket
7 Day18.7%12.8%8.2%
30 Day-8.1%1.5%1.5%
90 Day-27.7%-17.5%-11.5%
1 Year-48.1%-48.7%-35.1%-36.5%-16.6%-18.2%
3 Year-52.4%-53.6%-33.6%-36.0%-6.1%-11.1%
5 Year2.6%-1.3%-37.3%-40.5%19.2%8.0%

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?

7.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FINCABLES (₹234.35) is trading above our estimate of fair value (₹184.4)

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 (7.9x) compared to the Electrical industry average (10.6x).

PE vs Market: FINCABLES is good value based on its PE Ratio (7.9x) compared to the Indian market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: FINCABLES's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FINCABLES is overvalued based on its PB Ratio (1.3x) compared to the IN Electrical industry average (0.6x).


Next Steps

Future Growth

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

-11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FINCABLES's earnings are forecast to decline over the next 3 years (-11.5% per year).

Earnings vs Market: FINCABLES's earnings are forecast to decline over the next 3 years (-11.5% per year).

High Growth Earnings: FINCABLES's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FINCABLES's revenue is expected to decline over the next 3 years (-6% per year).

High Growth Revenue: FINCABLES's revenue is forecast to decline over the next 3 years (-6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FINCABLES's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Finolex Cables performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FINCABLES has high quality earnings.

Growing Profit Margin: FINCABLES's current net profit margins (14.8%) are higher than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: FINCABLES's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: FINCABLES's earnings growth over the past year (16.3%) exceeds its 5-year average (15.3% per year).

Earnings vs Industry: FINCABLES earnings growth over the past year (16.3%) exceeded the Electrical industry 7.6%.


Return on Equity

High ROE: FINCABLES's Return on Equity (15.8%) 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 (₹18.3B) exceed its short term liabilities (₹2.2B).

Long Term Liabilities: FINCABLES's short term assets (₹18.3B) exceed its long term liabilities (₹1.5B).


Debt to Equity History and Analysis

Debt Level: FINCABLES's debt to equity ratio (0.01%) is considered satisfactory.

Reducing Debt: FINCABLES's debt to equity ratio has reduced from 6.6% to 0.01% over the past 5 years.

Debt Coverage: FINCABLES's debt is well covered by operating cash flow (85959.5%).

Interest Coverage: FINCABLES earns more interest than it pays, so 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?

1.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FINCABLES's dividend (1.92%) is higher than the bottom 25% of dividend payers in the Indian market (0.83%).

High Dividend: FINCABLES's dividend (1.92%) is low compared to the top 25% of dividend payers in the Indian market (3.47%).


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 low payout ratio (15.2%), FINCABLES's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FINCABLES's dividends in 3 years are forecast to be well covered by earnings (26.2% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

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


Leadership Team

NamePositionTenureCompensationOwnership
Deepak Chhabria
Executive Chairman6.92yrs₹79.12m1.23% 442.3m
Mahesh Viswanathan
CFO, Deputy MD & Executive Director9.58yrs₹29.65mno data
Richard D'Silva
President of Legal & Company Secretaryno data₹4.70mno data
Gayatri Kulkarni
Compliance Officer & Company Secretary1.67yrsno datano data
Vijay Chhabria
Managing Director of Finolex Plasson Industries Limited10.25yrs₹14.17m0.35% 126.4m

2.8yrs

Average Tenure

Experienced Management: FINCABLES's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Deepak Chhabria
Executive Chairman6.92yrs₹79.12m1.23% 442.3m
Mahesh Viswanathan
CFO, Deputy MD & Executive Director9.58yrs₹29.65mno data
Devender Vasal
Non-executive Independent Director0.75yrno datano data
Pratap Govind Pawar
Independent Non-Executive Director21.75yrs₹2.92mno data
Shishir Lall
Non- Executive Independent Director3.08yrs₹2.33mno data
Shruti Udeshi
Independent Non-Executive Woman Director1.33yrsno datano data
Mohan Jain
Director1.58yrs₹505.00kno data
Jayaram Reddy
Non Executive Independent Director0.75yrno datano data
Joel Samuel
Non-Executive Director0.75yrno datano data
Yatin Redkar
Non-Executive Director0.75yrno datano data

1.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: FINCABLES's board of directors are not considered experienced ( 1.5 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: ₹35.841b
  • 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 wires and cables, and other electrical appliances in India. The company operates through Electrical Cables, Communication Cables, Copper Rods, and Others segments. It offers electrical cables, such as 1100 V PVC insulated, motor winding PVC insulated, 3 core flat, automotive/battery, UPS, elevator, and solar cables, as well as heavy duty, underground, low voltage, power, and control cables; and communication cables, including optic fiber, coaxial, local area network, CCTV, speaker, jelly filled telephone, PE insulated telephone, and V-SAT cables. The company also provides copper rods; and electrical switches, sockets, regulators, etc., as well as retrofit and non-retrofit CFL lamps, T5 tube lights, and fittings. In addition, it offers LED based lighting solutions; ceiling, portable, and exhaust fans; switchgear products, such as miniature circuit breakers, residual current circuit breakers, molded current circuit breakers, and distribution boxes; and instant and storage water heaters. Further, the company offers its products online. The company also exports its products to the United States and the United Arab Emirates. Finolex Cables Limited was founded in 1958 and is headquartered in Pune, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 13:17
End of Day Share Price2020/06/02 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.