Stock of the Day: Finolex Industries Shares Jump 12%—Key Levels to Watch
Among key highlights from the conference call, the management said they are adding new dealers and removing non-performing dealers. They also guided 10-12% of volume growth for FY25.
Shares of Finolex Industries Ltd. surged 12% after its management guided for 10-12% volume growth for FY25, even as its profit fell marginally in the fourth quarter.
The company's consolidated net profit fell 0.96% year-on-year to Rs 166.5 crore in the quarter ended March 2024, according to an exchange filing.
Among key highlights from the conference call, the management said they are adding new dealers and removing non-performing dealers. They also guided 10-12% of volume growth for FY25.
Finolex Industries Q4 Results Highlights: (Consolidated, YoY)
Revenue at Rs 1,235.42 crore versus Rs 1,141.06 crore, up 8.26%
Ebitda at Rs. 208.93 crore versus Rs 217.43 crore, down 3.9%
Margin at 16.91% versus 19.05%, down 214 bps
Net profit at Rs. 164.9 crore versus Rs. 166.5 crore, down 0.96%
Key Levels to Watch
Support Level: Rs 264.8 (One Day Low)
Resistance Level: Not (Applicable, At Life High)
The company primarily operates in the PVC pipes and fittings segment, with strong PVC volume growth of 23% and resin volume growth of 19% supporting its revenues.
This also supported both segments' revenue and EBIT. While the resin revenue for the whole financial year was lower as the overall prices of the commodity have fallen this year, the revenue has fallen by 36% for FY24.
“Very strong in agri segment and we expect growth in the upper single digits while the non-agri segment which includes plumbing and sanitation, we expect a CAGR of 15% over next five years which will lead to a 50-50 split in agri and non agri,” Managing Director Ajit Venkataraman told NDTV Profit. The non-agri split is the high margin business including plumbing and sanitation and higher share towards this segment will aid margins.
The last two quarters has seen stable PVC prices, and it’s a wait and watch at this point of time in commodities, he said.
Analyst Coverage
Shares of the company surged 11.02% to trade at Rs 301.30 apiece, compared with a 0.43% gain in the benchmark BSE S&P Sensex. The stock had touched an intraday high of Rs 303.95 apiece.
Out of 18 analysts tracking the company, eight maintain a 'buy' rating, another eight recommends a 'hold,' and two suggest 'sell', according to Bloomberg data.
