NSEI:FINOLEXIND

Stock Analysis Report

Executive Summary

Finolex Industries Limited manufactures and sells polyvinyl chloride (PVC) pipes and fittings, and PVC resins in India.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.9%

FINOLEXIND

1.6%

IN Chemicals

3.1%

IN Market


1 Year Return

23.4%

FINOLEXIND

15.2%

IN Chemicals

3.7%

IN Market

Return vs Industry: FINOLEXIND exceeded the Indian Chemicals industry which returned 15.2% over the past year.

Return vs Market: FINOLEXIND exceeded the Indian Market which returned 3.7% over the past year.


Shareholder returns

FINOLEXINDIndustryMarket
7 Day1.9%1.6%3.1%
30 Day10.5%7.7%5.7%
90 Day13.2%10.5%1.4%
1 Year25.9%23.4%16.6%15.2%5.9%3.7%
3 Year38.1%30.5%34.9%30.7%22.3%16.0%
5 Year97.8%81.7%123.5%110.9%42.5%28.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: FINOLEXIND (₹594.1) is trading above our estimate of fair value (₹327.35)

Significantly Undervalued: FINOLEXIND is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FINOLEXIND is poor value based on its PE Ratio (22.5x) compared to the Chemicals industry average (10.4x).

PE vs Market: FINOLEXIND is poor value based on its PE Ratio (22.5x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: FINOLEXIND is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: FINOLEXIND is overvalued based on its PB Ratio (2.9x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

How is Finolex Industries forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FINOLEXIND's forecast earnings growth (16.2% per year) is above the savings rate (7.6%).

Earnings vs Market: FINOLEXIND's earnings (16.2% per year) are forecast to grow slower than the Indian market (18.2% per year).

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

Revenue vs Market: FINOLEXIND's revenue (12.3% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: FINOLEXIND's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FINOLEXIND's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has Finolex Industries performed over the past 5 years?

26.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FINOLEXIND's earnings have grown significantly by 26.1% per year over the past 5 years.

Accelerating Growth: FINOLEXIND's earnings growth over the past year (2.1%) is below its 5-year average (26.1% per year).

Earnings vs Industry: FINOLEXIND earnings growth over the past year (2.1%) underperformed the Chemicals industry 9.9%.


Return on Equity

High ROE: FINOLEXIND's Return on Equity (12.7%) is considered low.


Return on Assets

ROA vs Industry: FINOLEXIND has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: FINOLEXIND's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Finolex Industries's financial position?


Financial Position Analysis

Short Term Liabilities: FINOLEXIND's short term assets (₹10.5B) exceeds its short term liabilities (₹5.2B)

Long Term Liabilities: FINOLEXIND's short term assets (10.5B) exceeds its long term liabilities (2.4B)


Debt to Equity History and Analysis

Debt Level: FINOLEXIND's debt to equity ratio (3.5%) is considered satisfactory

Reducing Debt: FINOLEXIND's debt to equity ratio has reduced from 83.1% to 3.5% over the past 5 years.

Debt Coverage: FINOLEXIND's debt is well covered by operating cash flow (449.8%).

Interest Coverage: FINOLEXIND's interest payments on its debt are well covered by EBIT (58.6x coverage).


Balance Sheet

Inventory Level: FINOLEXIND has a high level of physical assets or inventory.

Debt Coverage by Assets: FINOLEXIND's debt is covered by short term assets (assets are 11.632540x debt).


Next Steps

Dividend

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

1.68%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FINOLEXIND's dividend (1.68%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: FINOLEXIND's dividend (1.68%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).

Stable Dividend: FINOLEXIND's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.8%), FINOLEXIND's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FINOLEXIND's dividends in 3 years are forecast to be well covered by earnings (43.3% payout ratio).


Next Steps

Management

What is the CEO of Finolex Industries's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average board tenure


CEO

Sanjay Math (64yo)

2.8yrs

Tenure

₹25,292,081

Compensation

Mr. Sanjay S. Math has been Managing Director of Finolex Industries Limited since December 1, 2016 and has been its Whole-Time Director since February 4, 2012 and joined in December 13, 2011. Mr. Math serv ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Sanjay's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Sanjay's compensation has been consistent with company performance over the past year.


Board Age and Tenure

2.7yrs

Average Tenure

63yo

Average Age

Experienced Board: FINOLEXIND's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Sanjay Math (64yo)

    MD & Whole-Time Director

    • Tenure: 2.8yrs
    • Compensation: ₹25.29m
  • Prakash Chhabria (56yo)

    Executive Chairman

    • Tenure: 7.2yrs
    • Compensation: ₹103.37m
  • Anil Whabi (59yo)

    Director of Finance

    • Tenure: 3.2yrs
    • Compensation: ₹19.28m
  • Nitin Kulkarni (52yo)

    President of Sales & Marketing

    • Tenure: 0yrs
  • Diptesh Patel (47yo)

    Chief Information Officer

    • Tenure: 0yrs
  • Devang Trivedi

    Company Secretary

    • Tenure: 1.7yrs
    • Compensation: ₹2.93m
  • Jayanta Sinha (52yo)

    Vice President of Sales & Marketing

    • Tenure: 0yrs
  • Arun Sonawane (64yo)

    President of Operation Pipes & Fittings

    • Tenure: 0yrs
  • S. Mulye (58yo)

    Vice President of PVC O&M

    • Tenure: 0yrs
  • Shreedatta Albur

    Vice President of VCM - O&U

    • Tenure: 0yrs

Board Members

  • Kanchan Chitale (67yo)

    Independent Woman Director

    • Tenure: 0.5yrs
  • Pradeep Kumar Rathi (66yo)

    Non-Executive & Independent Director

    • Tenure: 0.08yrs
  • Saurabh Dhanorkar (63yo)

    Non-Executive & Non-Independent Director

    • Tenure: 2.2yrs
    • Compensation: ₹1.78m
  • Kishandas Chhabria

    Chairman Emeritus

    • Tenure: 7.2yrs
  • Sanjay Math (64yo)

    MD & Whole-Time Director

    • Tenure: 2.8yrs
    • Compensation: ₹25.29m
  • Prakash Chhabria (56yo)

    Executive Chairman

    • Tenure: 7.2yrs
    • Compensation: ₹103.37m
  • Anami Roy (69yo)

    Non-Executive & Independent Director

    • Tenure: 0.08yrs
  • Ritu Chhabria (52yo)

    Non-Executive & Non-Independent Director

    • Tenure: 4.6yrs
    • Compensation: ₹1.54m
  • Deepak Parikh (57yo)

    Non-Executive & Independent Director

    • Tenure: 0.08yrs
  • Anil Whabi (59yo)

    Director of Finance

    • Tenure: 3.2yrs
    • Compensation: ₹19.28m

Company Information

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


Key Information

  • Name: Finolex Industries Limited
  • Ticker: FINOLEXIND
  • Exchange: NSEI
  • Founded: 1956
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹74.401b
  • Shares outstanding: 124.10m
  • Website: https://www.finolexwater.com

Number of Employees


Location

  • Finolex Industries Limited
  • D-1/10, M.I.D.C
  • Chinchwad
  • Pune
  • Maharashtra
  • 411019
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500940BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
FINOLEXINDNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995

Biography

Finolex Industries Limited manufactures and sells polyvinyl chloride (PVC) pipes and fittings, and PVC resins in India. It operates in two segments, PVC Resin and PVC Pipes and Fittings. The company offers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:45
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.