Finolex Industries Q4 Review - A Mixed Bag; PVC Resin Margin A Key Monitorable: Systematix

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 Industries Ltd.’s Q4 FY22 performance was a mixed bag, as volumes in pipes recovered (up 31% YoY and 67% QoQ), driven by agri and plumbing pipes. But, polyvinyl chloride resin Ebit fell sharply (~Rs 20/kilogram, down 55% YoY and 52% QoQ; 15% margin) on lower PVC-ethylene dichloride spread. Management guided double-digit volume growth for pipes in FY23. However, we expect volatility in PVC resin margins to sustain, which should normalise at the historical 16-18% range over the long term. On these factors, we cut earnings estimates for FY23 and FY24 by 7% and 10% respectively. On a ~5% revenue compound annual growth rate over FY22-24E, we now estimate a 4% contraction in adjusted profit. Finolex’s stock price has fallen by over 35% since October 2021 on these concerns..Click on the attachment to read the full report:.DISCLAIMERThis 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.

Finolex Industries Q4 Review - A Mixed Bag; PVC Resin Margin A Key Monitorable: Systematix

Finolex Industries Q4 Review - A Mixed Bag; PVC Resin Margin A Key Monitorable: Systematix

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