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 (12.5x) is below the Indian market (15.9x)

Earnings are forecast to grow 11.95% per year

Pays a reliable dividend of 1.98%

Risk Analysis

No risks detected for FINCABLES from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.8%

FINCABLES

-4.9%

IN Electrical

-4.3%

IN Market


1 Year Return

-28.9%

FINCABLES

-22.9%

IN Electrical

-1.6%

IN Market

Return vs Industry: FINCABLES underperformed the Indian Electrical industry which returned -22.9% over the past year.

Return vs Market: FINCABLES underperformed the Indian Market which returned -1.6% over the past year.


Shareholder returns

FINCABLESIndustryMarket
7 Day-5.8%-4.9%-4.3%
30 Day-8.1%-7.7%-4.6%
90 Day-5.4%2.7%7.5%
1 Year-27.5%-28.9%-20.8%-22.9%0.2%-1.6%
3 Year-46.8%-48.8%-24.9%-28.8%1.9%-3.0%
5 Year23.9%17.8%-15.2%-20.3%38.6%28.4%

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?

12.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FINCABLES (₹277.35) is trading above our estimate of fair value (₹22.62)

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 (12.5x) compared to the IN Electrical industry average (14.8x).

PE vs Market: FINCABLES is good value based on its PE Ratio (12.5x) compared to the Indian market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: FINCABLES is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: FINCABLES is overvalued based on its PB Ratio (1.4x) compared to the IN Electrical industry average (0.7x).


Next Steps

Future Growth

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

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FINCABLES's forecast earnings growth (12% per year) is above the savings rate (7.2%).

Earnings vs Market: FINCABLES's earnings (12% per year) are forecast to grow slower than the Indian market (26.4% per year).

High Growth Earnings: FINCABLES's earnings are forecast to grow, but not significantly.

Revenue vs Market: FINCABLES's revenue (14% per year) is forecast to grow faster than the Indian market (11.8% per year).

High Growth Revenue: FINCABLES's revenue (14% per year) is forecast to grow slower 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?

11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FINCABLES has high quality earnings.

Growing Profit Margin: FINCABLES's current net profit margins (13.8%) are higher than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: FINCABLES's earnings have grown by 11% 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 (-12.7%) over the past year, making it difficult to compare to the Electrical industry average (-13.4%).


Return on Equity

High ROE: FINCABLES's Return on Equity (11.3%) 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 (₹20.7B) exceed its short term liabilities (₹2.4B).

Long Term Liabilities: FINCABLES's short term assets (₹20.7B) exceed its long term liabilities (₹1.6B).


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 9.9%.

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?

1.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FINCABLES's dividend (1.98%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: FINCABLES's dividend (1.98%) is low compared to the top 25% of dividend payers in the Indian market (2.32%).


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 (24.8%), 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?

1.9yrs

Average management tenure


CEO

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


Leadership Team

NamePositionTenureCompensationOwnership
Deepak Chhabria
Executive Chairman7.17yrs₹86.40m1.23%
₹ 523.5m
Yatin Redkar
Executive Director of Operations & Director1yr₹2.65mno data
Richard D'Silva
President of Legal & Company Secretaryno data₹4.70mno data
Gayatri Kulkarni
Compliance Officer1.92yrsno datano data
Vijay Chhabria
Managing Director of Finolex Plasson Industries Limited10.5yrs₹14.17m0.35%
₹ 149.6m

1.9yrs

Average Tenure

Experienced Management: FINCABLES's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Deepak Chhabria
Executive Chairman7.17yrs₹86.40m1.23%
₹ 523.5m
Yatin Redkar
Executive Director of Operations & Director1yr₹2.65mno data
Devender Vasal
Non-executive Independent Director1yr₹375.00kno data
Shishir Lall
Non-Executive Non Independent Director3.33yrs₹1.80mno data
Jayaram Reddy
Non Executive Independent Director1yr₹690.00kno data
Kavita Upadhyay
Independent Woman Director0.58yrno datano data

1.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: FINCABLES's board of directors are not considered experienced ( 1 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: ₹42.418b
  • 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 Analysis2020/09/27 19:52
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
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.