POSITIONAL TRADING: FINOLEX INDUSTRIES SHARE PRICE

Let’s have a complete understanding of Finolex Industries.

BUSINESS ANALYSIS

Finolex Industries (FIL) is the largest and only backward integrated PVC pipes and fitting manufacturer company with a production capacity of 3,70,000 MT per annum.

To provide better service to the customer, manufacturing plants were set up at Urse and Ratnagiri in Maharashtra and Masar in Gujarat.

Finolex Industries is the first Indian PVC Pipes manufacturer to be awarded with ISO 9001: 2015 certification.

The manufacturing unit at Ratnagiri is spread across 650 acres which provides a consistent supply of superior quality resin to its pipe plants.

Finolex Industries has around 900 dealers and 21,000 retail touch points.

The products of Finolex Industries are sub divided into 2 categories:

1.    Agriculture Pipes and Fittings.

2.    Plumbing & Sanitation Pipes & Fittings.

RECENT KEY BUSINESS POINTS

Strong Independent company

Finolex Industries has the capability to produce its entire requirement of PVC resin which is the major raw material used in manufacturing of PVC Pipes and Fittings.

Inter divisional transfer of raw material has increased drastically from 11% in 2008 to 86% in 2020.

Breakup of Revenue

Finolex Industries gains their 60% revenue from PVC Pipes and Fittings business while the rest 40% comes from PVC Resin sales.

Superb Distribution Network

Their robust distribution network helps in catering the services to the customers.

Manufacturing process

The Ratnagiri plant of Finolex Industries imports PVC resin to itself. For the end product manufacturing of PVC Pipes and Fittings, the resins are shipped to their Pune or Masar plants.

In the year 2020, the company produced 247,300 Metric tonnes (MT) of PVC Resin out of which 1,83,500 MT of resin was used by the company.

Finolex Industries manufactured 263,600 MT of PVC Pipes and Fittings.

Now, coming to the financials of the Finolex Industries.

FINANCIAL KEY METRICS

The Market Capitalization of Finolex Industries is ₹ 10,498 Cr.

Finolex Industries has a price to earnings ratio of 12.7 which is quite lesser than the industry price to earnings ratio of 23.3 indicating that Finolex Industries share price is low as compared to the earnings it is producing.

The return on capital employed of the Finolex Industries is 35.6% which is superb and shows that the company is providing awesome returns on the capital invested in it.

The return on equity of Finolex Industries is 28.8% showcasing the company’s awesome return on the investment done by their investors.

The debt to equity ratio of Finolex Industries is 0.06 which is almost negligible.

In the last 5 years, the company has delivered a good profit growth of 26.04%.

FINANCIAL ANALYSIS

For the quarter ended 30-06-2021, Finolex Industries share price reported a sales of Rs 966 Cr.

The sales of the company were down by almost 23% from last quarter sales of Rs 1,249 Cr.

The net profit of Finolex Industries share price was Rs 198 Cr in the latest quarter ended 30-06-2021.   

The earning per share of the company is Rs 2.35 which is as per the quarter ended 30-06-21.

SHARE HOLDING SYNOPSIS

PROMOTERS – 52.47%.

FIIs – 2.87%.

DIIs – 11.56%.

PUBLIC – 32.76%.

OTHERS – 0.34%.

Finolex Industries stands tall at 3rd position as per the current market capitalization.

This is a brief overview of the financials of the Finolex Industries share price which shows the dominance in their respective market.

Now, let’s deep dive into the technicality of Finolex Industries share price.

CHART PATTERN ANALYSIS OF FINOLEX INDUSTRIES SHARE PRICE

If we take a closer look at the chart in a daily time frame, a falling wedge pattern is formed.

The breakout is achieved and the share price has taken a support on the trendline which is a sign of massive uptrend.

For Finolex Industries share price there is 1 target as stated in the above image.

The Finolex Industries share price on 8th September 2021 is Rs 169.

The above image shows the chart pattern which is under formation.

MOVING AVERAGE OF FINOLEX INDUSTRIES SHARE PRICE

For Finolex Industries share price analysis, we are taking 20, 50, 100 and 200 days moving average.

Longer duration moving averages such as 100 days and 200 days helps a trader or investor to predict the trend of the stock.

As the 20 days moving average is about to cross the 50 days moving average there is a chance of great uptrend.

The following colors represent the respective moving averages in the chart:

Red: 20 days moving average.

Pink: 50 days moving average.

Green: 100 days moving average.

Black: 200 days moving average.

SUPER TREND OF FINOLEX INDUSTRIES SHARE PRICE

The super trend is suggesting a buying signal in the 3 hour timeframe.

This is a positive signal and a sign of higher gains in the future.

DISCLAIMER:

Bottom of this page contains the disclaimer.

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