Finolex Industries Limited

BSE:500940 Stock Report

Market Cap: ₹162.4b

Finolex Industries Valuation

Is 500940 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 500940 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500940 (₹262.55) is trading above our estimate of fair value (₹115.56)

Significantly Below Fair Value: 500940 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500940?

Key metric: As 500940 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500940. This is calculated by dividing 500940's market cap by their current earnings.
What is 500940's PE Ratio?
PE Ratio20.3x
Earnings₹8.02b
Market Cap₹162.37b

Price to Earnings Ratio vs Peers

How does 500940's PE Ratio compare to its peers?

The above table shows the PE ratio for 500940 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.1x
500870 Castrol India
20.9x9.5%₹188.1b
500165 Kansai Nerolac Paints
33.7x12.1%₹210.5b
PCBL PCBL Chemical
29.4x23.4%₹147.2b
EPIGRAL Epigral
28.3x19.1%₹83.2b
500940 Finolex Industries
20.3x-0.5%₹162.4b

Price-To-Earnings vs Peers: 500940 is good value based on its Price-To-Earnings Ratio (20.3x) compared to the peer average (28.1x).

Price to Earnings Ratio vs Industry

How does 500940's PE Ratio compare vs other companies in the IN Chemicals Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ZUARI Zuari Agro Chemicals
5xn/aUS$105.84m
NAGAFERT Nagarjuna Fertilizers and Chemicals
0.3xn/aUS$66.73m
UNIVPHOTO Universus Photo Imagings
4.9xn/aUS$48.64m
526773 Pressure Sensitive Systems (India)
0.6xn/aUS$7.19m
500940 20.3xIndustry Avg. 31.4xNo. of Companies34PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500940 is good value based on its Price-To-Earnings Ratio (20.3x) compared to the Indian Chemicals industry average (31.6x).

Price to Earnings Ratio vs Fair Ratio

What is 500940's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500940 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.3x
Fair PE Ratio22.5x

Price-To-Earnings vs Fair Ratio: 500940 is good value based on its Price-To-Earnings Ratio (20.3x) compared to the estimated Fair Price-To-Earnings Ratio (22.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 500940 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹262.55
₹301.38
+14.8%
13.8%₹375.00₹212.00n/a16
Nov ’25₹305.70
₹300.50
-1.7%
13.9%₹375.00₹212.00n/a16
Oct ’25₹278.45
₹314.00
+12.8%
14.3%₹381.00₹212.00n/a16
Sep ’25₹311.90
₹314.00
+0.7%
14.3%₹381.00₹212.00n/a16
Aug ’25₹314.15
₹311.81
-0.7%
15.5%₹381.00₹212.00n/a16
Jul ’25₹331.90
₹278.47
-16.1%
12.2%₹345.00₹212.00n/a15
Jun ’25₹312.40
₹269.47
-13.7%
11.8%₹320.00₹212.00n/a15
May ’25₹266.25
₹242.93
-8.8%
9.0%₹281.00₹210.00n/a15
Apr ’25₹248.95
₹243.07
-2.4%
9.0%₹281.00₹210.00n/a14
Mar ’25₹223.00
₹243.07
+9.0%
9.0%₹281.00₹210.00n/a14
Feb ’25₹220.75
₹243.07
+10.1%
9.0%₹281.00₹210.00n/a14
Jan ’25₹210.70
₹220.71
+4.8%
11.9%₹250.00₹150.00n/a14
Dec ’24₹204.80
₹219.13
+7.0%
11.9%₹250.00₹150.00n/a15
Nov ’24₹190.85
₹218.36
+14.4%
12.3%₹250.00₹150.00₹305.7014
Oct ’24₹224.00
₹208.83
-6.8%
12.1%₹245.00₹150.00₹278.4512
Sep ’24₹248.25
₹208.23
-16.1%
11.7%₹245.00₹150.00₹311.9013
Aug ’24₹197.20
₹206.50
+4.7%
11.9%₹245.00₹150.00₹314.1514
Jul ’24₹175.70
₹202.00
+15.0%
11.8%₹245.00₹150.00₹331.9014
Jun ’24₹173.05
₹210.33
+21.5%
7.3%₹245.00₹193.00₹312.4012
May ’24₹167.40
₹188.07
+12.3%
18.6%₹245.00₹109.00₹266.2514
Apr ’24₹170.75
₹188.29
+10.3%
18.6%₹245.00₹109.00₹248.9514
Mar ’24₹167.65
₹188.29
+12.3%
18.6%₹245.00₹109.00₹223.0014
Feb ’24₹169.10
₹166.93
-1.3%
20.3%₹245.00₹109.00₹220.7514
Jan ’24₹186.65
₹164.07
-12.1%
19.3%₹245.00₹109.00₹210.7014
Dec ’23₹158.00
₹163.71
+3.6%
19.2%₹245.00₹109.00₹204.8014
Nov ’23₹133.70
₹163.00
+21.9%
19.1%₹245.00₹109.00₹190.8514

Analyst Forecast: Target price is less than 20% higher than the current share price.

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