Finolex Industries in focus; here's why
In a few ideas for profit from Moneycontrol Pro, Sachin Pal of Moneycontrol.Com spoke about a stock that he is tracking closely, Finolex Industries.
In a few ideas for profit from Moneycontrol Pro, Sachin Pal of Moneycontrol.Com spoke about a stock that he is tracking closely, Finolex Industries.
It is the largest and only backward integrated manufacturer of plastic pipes in India. The business has delivered an exceptional performance since the onset of COVID-19 primarily due to recuperating demand across its key operating markets as well as strong realizations in the PVC resin segment.
The margins of the company have come in the range of 25-30 percent and is exceptionally higher due to highest rates in the PVC segment. Going forward, margin performance is likely to moderate as the company is witnessing slowdown in demand from the rural markets.
Long-term prospects of the business appears fairly bright due to several government initiatives such as Nal Se Jal scheme as well as infrastructure spending.
The stock is corrected 30 percent from its all-time highs and is trading at reasonable valuations at this point of time. Investors can look forward to go long on the stock at current levels.
Watch the accompanying video for more details.
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First Published: Apr 22, 2022 12:42 PM IST
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