Hello and welcome back to one more interesting article wherein we’ll discuss the Finolex share price which was analyzed earlier and has achieved the target predicted by us in a span of 8 days.
Let’s check the parameters which helped the Finolex share price to achieve a value of approximately 55%.
BUSINESS ANALYSIS FOR TARGET ACHIEVEMENT
The rise in Finolex share price was mainly due to the extraordinary financial results shown by the company.
There was no major breaking news which helped the share price to reach its predicted target.
The company highlighted that it had performed exceptionally well in the H1 of 2021 and achieved a highest Q2 result till date.
There has been a significant improvement in operational performance which was stated in its post result investors presentation.
In October 2021, the revenue of the PVC segment was at ₹ 654.34 Cr as compared with ₹ 367.83 Cr in the year ago period.
PVC Pipes & Fittings segment revenue also saw a boom from ₹ 899.63 Cr to ₹ 500.83 Cr in the period (Oct 2020 to Oct 2021).
FINANCIAL ANALYSIS FOR TARGET ACHIEVEMENT
Figures in Rs. Crores
|Quarterly Results||Dec 2018||Mar 2019||Jun 2019||Sep 2019||Dec 2019||Mar 2020||Jun 2020||Sep 2020||Dec 2020||Mar 2021||Jun 2021||Sep 2021|
|Profit before tax||125||143||113||83||133||89||77||161||349||405||198||308|
|EPS in Rs||1.29||1.5||1.18||1.65||1.59||0.95||0.91||1.98||4.18||4.82||2.35||3.76|
In September 2021, the company reported a sales of ₹ 1083 which is an increase of 54% from the sales registered in the year ago period.
The expenses have also increased gradually but it is evident that the company is using the revenue to increase its business.
All the parameters such as Other income, Net profit, EPS, etc. are superb which is a great sign for future growth of the company.
Reserves have increased steadily, and investors are very much interested in this company seeing its great prospect.
Figures in Rs. Crores
|Balance Sheet||Mar 2016||Mar 2017||Mar 2018||Mar 2019||Mar 2020||Mar 2021||Sep 2021|
SHARE HOLDING SYNOPSIS
|Share Holding Pattern||Dec 2018||Mar 2019||Jun 2019||Sep 2019||Dec 2019||Mar 2020||Jun 2020||Sep 2020||Dec 2020||Mar 2021||Jun 2021||Sep 2021|
Promoters have maintained their position in this stock.
But there is a great interest shown by FIIs which is showcased by their action of increasing the stake and currently FIIs have 4.31%.
Now, let’s deep dive into the technicalities of Finolex share price.
CHART PATTERN ANALYSIS
During the prior analysis we had highlighted the formation of a falling wedge pattern.
Click here for previous analysis on Finolex share price.
The time we did the analysis of this company, the breakout was achieved, and the price had retested its trendline.
Finolex share price did achieve its target of ₹ 195 and rallied till ₹ 268 showcasing a whooping target achievement of 55%.
For Finolex share price analysis, we had taken 9 days and 21 days moving averages.
As per the historical crossovers we had predicted that there would be a rally in the stock once the two moving averages again cross each other.
The same happened and the stock achieved its desired target.
The 9 days moving average is indicated in red while the 21 days moving average is blue.
Super trend indicator showed a buying signal which made the conviction stronger on this stock.