BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
Finolex Cables Ltd.’s business prospects are reviving, given the improving outlook for the real estate sector. After lacklustre performance over FY17-21, the company reported decent performance in FY22, with the same continuing in FY23.
With the outlook on the wires industry too improving, we estimate 13%/23%/-2% compound annual growth rate in revenue/Ebitda/profit after tax over FY22-24E (FY18-22: 8%/-1%/16%).
Despite healthy operating performance, an expected fall in Finolex Industries Ltd.’s profits could impact Finolex Cables’ profit after tax growth.
Even though Finolex Cables has been underperforming peers in recent years, we expect it to play catch up, considering its current valuation of ~12 times FY24E earnings, underpinned by its cash-rich/ free cash flow status, and the improving outlook on its business. However, the ongoing family tussle for company ownership would remain an overhang on the stock.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR