Buy Finolex Industries, target price Rs 181: ICICI Securities

ICICI Securities has buy call on Finolex Industries with a target price of Rs 181. The current market price of Finolex Industries Ltd. is Rs 132.4.

Finolex Industries Ltd., incorporated in the year 1981, is a Mid Cap company (having a market cap of Rs 8246.14 Crore) operating in Plastics sector.

Finolex Industries Ltd. key Products/Revenue Segments include PVC Pipes & Fittings, Scrap and Other Operating Revenue for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 979.96 Crore, down -19.34 % from last quarter Total Income of Rs 1214.88 Crore and down -11.87 % from last year same quarter Total Income of Rs 1111.89 Crore. Company reported net profit after tax of Rs -94.73 Crore in latest quarter.

Investment Rationale
FNXP has seen sharp decline in profitability on sharp correction in PVC prices but is able to withstand it due to robust balance sheet. The brokerage expects profitability to improve going ahead as 1) PVC prices stabilise and 2) volumes improve due to lower RM prices.

Promoter/FII Holdings
Promoters held 52.47 per cent stake in the company as of 30-Jun-2022, while FIIs owned 5.69 per cent, DIIs 9.81 per cent.