Finolex Cables Ltd - Stock Valuation and Financial Performance

BSE: 500144 | NSE: FINCABLES | Cable | Small Cap

Finolex Cables Share Price

1,001 25.95 2.66%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Finolex Cables

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Finolex Cables stock performance -

mw4me loader
P/E Ratio (SA):
26.63
Market Cap:
14,912.4 Cr.
52-wk low:
772.3
52-wk high:
1,219.1

Is Finolex Cables Ltd an attractive stock to invest in?

1. Is Finolex Cables Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Finolex Cables Ltd is a good quality company.

2. Is Finolex Cables Ltd undervalued or overvalued?

The key valuation ratios of Finolex Cables Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Finolex Cables Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Finolex Cables Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Finolex Cables:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Finolex Cables Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 17.9%14.2%16.3%19%18.2%15.5%16.6%10.7%13.3%14.7%-
Value Creation
Index
0.30.00.20.40.40.20.2-0.20.00.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,3592,4492,3602,4452,8153,0782,8772,7683,7684,4814,838
Sales YoY Gr.-3.8%-3.6%3.6%15.2%9.3%-6.5%-3.8%36.1%18.9%-
Adj EPS 13.111.615.721.724.223.527.919.726.933.536.6
YoY Gr.--11.7%35.7%38.1%11.5%-3%18.8%-29.4%36.5%24.7%-
BVPS (₹) 72.182.7104.3122.8143.4159.5177.8192.9213.4242.5264.8
Adj Net
Profit
201177241332370359427301411513560
Cash Flow from Ops. 224183276213236154309114473356-
Debt/CF from Ops. 0.70.70.20000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.4%9.7%15.9%18.9%
Adj EPS 11%6.7%6.3%24.7%
BVPS14.4%11.1%10.9%13.7%
Share Price 24.8% 15.8% 37.5% 25.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
19.81516.819.118.215.516.610.613.214.714.4
Op. Profit
Mgn %
11.111.115.216.215.514.614.113.811.311.411.8
Net Profit
Mgn %
8.57.210.213.613.211.714.810.910.911.511.6
Debt to
Equity
0.10.100000000-
Working Cap
Days
867978859099118183185155125
Cash Conv.
Cycle
61564947526173886552111

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 14.40%

Sales growth is growing at healthy rate in last 3 years 15.91%

Net Profit has been subdued in last 3 years 6.32%

Sales growth is not so good in last 4 quarters at 9.20%

Latest Financials - Finolex Cables Ltd.

Standalone Consolidated
TTM EPS (₹) 36.6 41.9
TTM Sales (₹ Cr.) 4,838 4,838
BVPS (₹.) 264.8 308.6
Reserves (₹ Cr.) 4,020 4,689
P/BV 3.68 3.16
PE 26.63 23.28
From the Market
52 Week Low / High (₹) 772.30 / 1219.10
All Time Low / High (₹) 5.05 / 1219.10
Market Cap (₹ Cr.) 14,912
Equity (₹ Cr.) 30.6
Face Value (₹) 2
Industry PE 45.3

Management X-Ray of Finolex Cables:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Finolex Cables

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2,3592,4492,3602,4452,8153,0782,8772,7683,7684,481
Operating Expenses 2,1112,1892,0212,0732,3982,6492,5072,4133,3533,986
Manufacturing Costs949073748788837083107
Material Costs1,7331,7881,7211,7272,0342,2652,0832,0512,9663,544
Employee Cost 8594107119135130139129136152
Other Costs 199217120154142167202163167183
Operating Profit 248260339371417429370355415495
Operating Profit Margin (%) 10.5%10.6%14.4%15.2%14.8%13.9%12.9%12.8%11.0%11.0%
Other Income 48586410013314517277152199
Interest 141494112121
Depreciation 48645848444139393946
Exceptional Items 102300000000
Profit Before Tax 244263336419504532501392527646
Tax 36648810314618899109122144
Profit After Tax 208199249316358344402283405502
PAT Margin (%) 8.8%8.1%10.5%12.9%12.7%11.2%14.0%10.2%10.7%11.2%
Adjusted EPS (₹)13.613.016.320.723.422.526.318.526.532.8
Dividend Payout Ratio (%)12%14%15%15%17%20%21%30%23%21%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1,1031,2651,5961,8772,1942,4402,7192,9513,2643,710
Share Capital 31313131313131313131
Reserves 1,0731,2341,5651,8472,1632,4092,6882,9203,2333,679
Minority Interest0000000000
Debt12751261100000
Long Term Debt12751261100000
Short Term Debt0000000000
Trade Payables536590188177208159176190209
Others Liabilities 281252207110104121134125146165
Total Liabilities 1,5641,6341,9182,1762,4762,7693,0123,2523,6004,083

Fixed Assets

Gross Block1,0611,098487517550582603649662762
Accumulated Depreciation53559611102141178216255282327
Net Fixed Assets526502476415409404387394380435
CWIP 1173851027268721
Investments 4034947008961,2151,3827269371,1201,713
Inventories352319329462499587593755653675
Trade Receivables145119126124175211187177177218
Cash Equivalents 6513821917610449934543873
Others Assets61556595691261589091,145949
Total Assets 1,5641,6341,9182,1762,4762,7693,0123,2523,6004,083

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 224183276213236154309114473356
PBT 244263336419504532501392527646
Adjustment 17156414-42-67-82-5-71-125
Changes in Working Capital -14-48-55-92-92-149-1-156149-33
Tax Paid -22-47-70-129-135-162-110-117-132-132
Cash Flow From Investing Activity -67-186-127-126-134-110587-859-378-225
Capex -95-32-13-35-37-44-32-55-67-31
Net Investments -5-188-135-200-275-137535-834-430-324
Others 333420109177728430119131
Cash Flow From Financing Activity -61-39-68-75-57-75-86-86-87-97
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 000-26000000
Interest Paid -14-13-9-4-1-1-10-10
Dividend Paid -21-29-28-38-46-61-68-84-84-92
Others -252-31-8-9-13-17-2-2-5
Net Cash Flow 96-43811144-30810-831835
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)20.4816.7817.418.1917.614.8515.619.9813.0214.39
ROCE (%)21.9520.9522.7424.0324.8422.9919.4913.861718.56
Asset Turnover Ratio1.691.611.451.31.241.1710.881.11.17
PAT to CFO Conversion(x)1.080.921.110.670.660.450.770.41.170.71
Working Capital Days
Receivable Days21191717192325241716
Inventory Days50484654616475896854
Payable Days12121629333132302321

Finolex Cables Ltd Stock News

Finolex Cables Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Finolex Cables on 28-Mar-2024 16:01 is ₹1,001.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Finolex Cables stood at ₹14,912.4.
The latest P/E ratio of Finolex Cables as of 28-Mar-2024 16:01 is 26.63.
The latest P/B ratio of Finolex Cables as of 28-Mar-2024 16:01 is 3.68.
The 52-week high of Finolex Cables is ₹1,219.1 and the 52-week low is ₹772.3.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Finolex Cables is ₹4,838 ( Cr.) .

About Finolex Cables Ltd

Established in 1958, Finolex Cables is India’s largest and leading manufacturer of electrical and telecommunication cables. It has recently diversified into the fast-moving electrical goods (FMEG) segment with the aim of becoming a complete electrical products company.

The company started its operation with the manufacture of PVC insulated electrical cables for the automobile industry. Since then, the Company has constantly endeavored to augment its product range to include PVC Insulated Industrial Cables , FR-LSH PVC Insulated Industrial Cables, PVC Insulated Single Core and Multicore Flexible Industrial Cables, Rodent Repellent Multicore Flexible Industrial Cables, PVC Insulated Winding Wires and 3 Core Flat Cables, XLPE 3 Core Flat Cables, Power and Control Cables, High Voltage Power Cables (Up to 33 kV), Polyethylene Insulated Jelly Filled Telephone Cables, Auto & Battery Cables, Co-axial and CATV cables, LAN Cables, Switchboard Cables, Fibre Optic Cables, Solar Cables and others.

Besides a wide variety of Wires & Cables, the Company is also manufacturing lighting products, electrical accessories, switchgear, fans and water heaters.  The company has manufacturing facilities at Pimpri and Urse in Pune as well as at Goa & Uttarakhand. The company has, over the years, established its reputation as an innovative leader and quality manufacturer by continuously upgrading technology, modernising manufacturing facilities and maintaining highest standards of quality and services.

Today, the name Finolex has become synonymous with Quality and enjoys overwhelming confidence of the customers. Investors have also fancied its stock in view of its phenomenal progress leading to a manifold increase on investment in stock through the years.

Its long - decade journey is anchored on the pillars of its manufacturing excellence, innovation focus and technology edge. By maintaining the highest standards of quality and service, it has built a strong relationship with institutional and retail customers. It has always been striving for offering better products to market on time. For achieving this, Finolex Cables has set up four modern state-of-the-art plants. These manufacturing plants are located in Pimpri (Pune), Urse (Pune), Goa & Roorkee (Uttarakhand). All these manufacturing plants are well equipped with latest state-of-the-art modern machinery for producing quality product. All the plants are ISO 9001 certified. In addition to this, all plants are ISO 14000 certified. All the plants are equipped with the testing facilities for assuring the best quality products. All these plants are continuously upgraded to latest & modern technology for offering quality product at competitive prices. The safety records of all these plants are excellent.

Business area of the company

The Company is principally engaged in the manufacturing of Electricals Cables, Communication Cables & other electrical appliances.

Products

  • Wires & Cables
  • Optical Fibre Cables
  • Switches
  • LED Lightings
  • Fan
  • MCB
  • Water Heater

Milestones

  • 1958: The business was started as a partnership firm ‘Indian Cable Industries’.
  • 1960: Light Duty Cables Plant,Pimpri, Maharashtra
  • 1972: Promoters of Indian Cable Industries acquired Alpha Rubber Co. and thereafter company name changes to Finolex Cables Ltd.
  • 1974: Indian Cable Industries was dissolved and the business was taken over by Finolex Cables Ltd.
  • 1980: Low Voltage Power Cable Plant, Pimpri, Maharashtra
  • 1983: Finolex Cables Ltd. got listed via a maiden Public Issue Jelly Filled Telephone Cables Plant, Pimpri, Maharashtra
  • 1987: Technical Collaboration with NSW, Germany
  • 1989: Jelly Filled Telephone Cables Plant, Urse, Maharashtra
  • 1997: AT&T Finolex JV, Optical Fibre Cables Plant, Urse, Maharashtra
  • 1998: Finolex Essex JV, Copper Rod Plant, Goa (Backward Integration)
  • 2000: Jelly Filled Telephone Cables Plant, Verna, Goa
  • 2002: Light Duty Cables Plant, Verna, Go
  • 2003: Optical Fibre Cable Plant, Verna, Goa
  • 2004: Manufacturing of Glass Fibre, Urse. (Backward Integration)
  • 2005: Superbrand Recognition
  • 2006: Switches Plant, Urse, Goa
  • 2007: Lighting Products Plant, Urse, Maharashtra
  • 2008: Light Duty Cables Plant, Roorkee, Uttarakhand
  • 2011: Finolex J Power Systems, JV with Sumitomo of Japan, Extra High Voltage Power Cables Plant, Shirwal, Maharashtra. Corning Finolex, JV Optical Fibre Plant, Pune, Maharashtra
  • 2010: Electrical Switch Plant, Uttarakhand
  • 2014: 5.5 MW Solar plant, Urse
  • 2016: Launched Fans & Water Heaters Switchgear Plant Uttarakhand
  • 2018-19: Launched own e-retail website to address the e-commerce and online retail opportunity
  • 2018-19: Launched the first of its exclusive retail store chains, ‘Finolex House’, in Chennai
  • 2019-20: Opened four Finolex House Stores at Secunderabad, Jamshedpur, Bengaluru and Raipur
  • 2019-20: Launched electrical wire accessories like doorbell, extension box, spike guard, angle holders, batten holders, etc. to take a share of the quality electrical products market
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