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Finolex Cables Ltd Stock Analysis

Mid Cap
Evaluated by 3097 users | BSE: 500144 | NSE: FINCABLES |
Cable

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...

Analysis of Financial Track Record

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
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.96%14.34%16.49%17.91%14.15%16.25%16.68%15.98%13.49%14.59%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,0362,0642,2712,3592,4492,3602,4452,8153,0782,877
Y-o-Y Gr. Rt.-1.4%10%3.9%3.8%-3.6%3.6%15.2%9.3%-6.5%
Adjusted EPS (Rs.) 7.167.9410.5913.1311.5915.7319.0321.2120.3924.53
Y-o-Y Gr. Rt.-10.9%33.4%24%-11.7%35.7%21%11.5%-3.9%20.3%
Book Value per Share (Rs.) 46.9152.3360.4372.1482.69104.32122.75143.44159.51177.75
Adjusted Net Profit 109121162201177241291324312375
Net Op. Cash Flow (Rs. Cr.) 33.8206149224183276213236154259
Debt to Cash Flow from Ops 7.690.831.210.660.690.180.01000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Finolex Cables Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.9%3.3%5.6%-6.5%
Adjusted EPS 14.7%16.2%8.8%20.3%
Book Value per Share 1616.513.111.4
Share Price 32.6% 8.7% -4.5% 68.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 16.0916.0118.7819.8114.9816.8216.7615.9413.4614.55
Operating Profit Margin (%) 8.538.9110.4811.0511.1115.1815.1914.8214.6414.08
Net Profit Margin (%) 5.385.897.138.517.2410.1911.9111.5210.1313.04
Debt to Equity 0.360.210.20.130.10.030000
Working Capital Days 768581867978859099118
Cash Conversion Cycle 51595561564947526173
Entity Percentage Holding
Promoters 35.92%
Institutions 26.47%
Non-Institutions 37.61%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Finolex Cables Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Finolex Cables Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Finolex Cables Ltd's performance infers:

Finolex Cables Ltd earnings have grown by 16.2%, whereas share price has appreciated 8.7% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Finolex Cables Ltd share prices over the last 10 years. Here is what we found out:

Finolex Cables Ltd share price has appreciated 28% annually over the past ten years.

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

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
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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