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Finolex Cables Ltd. Stock Analysis

Small Cap
Evaluated by 2851 users | BSE: 500144 | NSE: FINCABLES |
Cable
Finolex Cables, the flagship company of the Finolex Group was established in 1958 in Pune. Today, it is India's largest and leading manufacturer of electrical and telecommunication cables with a turnover in excess of Rs.16 Billion (about US $ 320 million).The company has manufacturing...

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 25.2% 2.5% -22% -26.2%
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 25.85%
Non-Institutions 38.23%
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 2.5% 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 16.4% annually over the past ten years.

Finolex Cables, the flagship company of the Finolex Group was established in 1958 in Pune. Today, it is India's largest and leading manufacturer of electrical and telecommunication cables with a turnover in excess of Rs.16 Billion (about US $ 320 million).

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

Finolex Cables, the flagship company of the Finolex Group was established in 1958 in Pune. Today, it is India's largest and leading manufacturer of electrical and telecommunication cables with a turnover in excess of Rs.16 Billion (about US $ 320 million).

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, modernizing manufacturing facilities and maintaining highest standards of quality and services.

Every cable is manufactured using bright annealed electrolytic grade copper – 99.97% pure manufactured in house and is insulated with virgin grade PVC (manufactured by group company Finolex Industries  that is formulated in-house.

Business of the 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 electrical wires and Flame Retardant Low Smoke electrical wires, PVC insulated single core and multicore industrial flexible cables, Rodent Repellent Multicore Flexible Cables, PVC Insulated Winding Wires and 3 Core Flat Cables, XLPE 3 Core Flat Cables, Power and Control Cables, High Voltage Power Cables (Upto 33 kV), Polyethylene Insulated Jelly Filled Telephone Cables, Auto & Battery Cables, Co-axial and CATV cables, LAN Cables, Switchboard Cables, Fibre Optic Cables and others. 

Group Companies:

  • Finolex Industries
  • Finolex J-Power Systems
  • Finolex Plasson Industries

Certification and Awards:

The company has received the ISO 9002 systems certification across all product lines and plants. Besides ISO 14001-quality certification has been accorded to its plants in Urse (JFTC & Co-Axial) and Goa (JFTC & HW) and Pimpri.

The company has received several honours such as Harvard Business School Association of India - Economic Times award for 'corporate excellence'; IIM - LIC award for 'marketing' and the Engineering Export Promotion Council's 'export performance certificate'.

 The company was also awarded the Export House status by the Directorate General of Foreign Trade.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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