'Add' Finolex Industries Shares Maintains PL Capital, Revises Target Price — Here's Why

The brokerage believes Finolex stands to benefit from imposition of anti dumping duty on PVC resin given its backward integration, GST rate revision on agri pipes, expanding dealer/distribution network, and gradual expansion in P&F capacity..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..PL Capital Report.We upward revise our FY26E/FY27E earnings estimate of Finolex Industries Ltd. by 7.1%/5.7% and maintain ‘Accumulate’ rating with revised target price of Rs 228 (Rs 217 earlier), based on 20x FY27E earnings plus valued stake in the group listed entity Finolex Cables at 50% discount to consensus target market value. We recently met the management of Finolex Industries to gauge volume growth outlook, market share dynamics, PVC resin availability, and price trends post DGTR’s final findings on anti dumping duty on PVC resin. The company reiterated its 10% volume growth guidance in pipes and fittings for FY26 and expects margin improvement ahead. .We believe Finolex stands to benefit from-imposition of ADD on PVC resin given its backward integration,GST rate revision on agri pipes,expanding dealer/distribution network, andgradual expansion in P&F capacity. We estimate revenue/Ebitda/PAT CAGR of 9.9%/16.9%/27.6% for FY25-27E with P&F volume CAGR of 9.2% and Ebitda margin of 13.0% by FY27E. Maintain ‘Accumulate’..Click on the attachment to read the full report:.'Buy' Samvardhana Motherson To Get An Upside Of 20% Says Yes Securities, Sees Strong Growth Across Verticals.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Add' Finolex Industries Shares Maintains PL Capital, Revises Target Price — Here's Why

Anti dumping duty on PVC resin to drive volume growth, margin improvement says Finolex Industries.

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