FINOLEX SHARE PRICE: TARGET ACHIEVED!!!

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
Sales	757	964	944	577	699	769	562	586	1066	1249	966	1083
Expenses	618	818	820	495	561	665	474	441	720	839	758	783
Operating Profit	139	146	124	82	138	104	88	145	346	410	208	300
OPM %	0.18	0.15	0.13	0.14	0.2	0.13	0.16	0.25	0.32	0.33	0.22	0.28
Other Income	7	16	8	21	15	13	11	36	24	17	15	29
Interest	2	2	1	0	2	8	3	1	1	2	5	0
Depreciation	20	18	17	19	19	19	19	19	20	20	20	21
Profit before tax	125	143	113	83	133	89	77	161	349	405	198	308
Tax %	0.36	0.35	0.36	-0.23	0.26	0.34	0.27	0.24	0.26	0.26	0.27	0.24
Net Profit	80	93	73	102	99	59	57	123	259	299	146	233
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 Capital	124	124	124	124	124	124	124
Reserves	1466	2191	2671	2452	1862	3015	3378
Borrowings	212	94	101	90	283	204	30
Other Liabilities	583	588	610	666	623	951	919
Total Liabilities	2385	2997	3506	3332	2891	4294	4451
Fixed Assets	850	855	884	951	1017	1002	977
CWIP	7	22	90	90	7	8	11
Investments	854	1264	1607	1362	656	1679	1831
Other Assets	675	856	925	929	1211	1604	1631
Total Assets	2385	2997	3506	3332	2891	4294	4451

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	52.47	52.47	52.47	52.47	52.47	52.47	52.47	52.47	52.47	52.47	52.47	52.47
FIIs	2.86	2.34	2.4	2.37	2.33	2.31	2.35	2.12	2.28	2.73	2.87	4.31
DIIs	9.95	10.63	11.16	12	11.81	12.67	12.93	13.29	12.89	11.84	11.56	10.67
Public	34.37	34.21	33.62	32.81	33.04	32.2	31.9	31.77	32.01	32.61	32.76	32.2
Others	0.35	0.35	0.35	0.35	0.35	0.35	0.35	0.35	0.35	0.35	0.34	0.34

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%.

MOVING AVERAGE

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

Super trend indicator showed a buying signal which made the conviction stronger on this stock.

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