Friday, 9 May 2014

Finolex Cables - Quick Update

About a year back, I had posted on Finolex Cables (refer to the post here). The company has performed well. The company has delivered an EPS of 13.6 versus 11-12 that I had expected. 

The company had very good margin expansion (the OPM expanded by
2.31% yoy to 11.6%). 

The company has also commenced a solar power plant for which it has got a tax benefit. This has aided in Net Profit growth (79% yoy) for Q4. 

Operating cash flow was above Rs 200 crore (about 85% of the operating profit). It repaid 54 cr worth of debt.
I am expecting an FY15 EPS range between 16-18. At a PE range of 15-20, the possible price ranges are 240-360. There is a lot of potential that still remains in the stock, even after its sharp run-up. The stock continues to remain attractive for investors for the medium term.

CMP - 153.

Note: I am invested in the company and have a vested interest in the stock. Please do your own due diligence before investing.

2 comments:

  1. Hello Abhishek

    After the recent run up do you see if it is good to add a stock or can we wait for a correction. I am interested in this stock and would like to hold it atleast for 2 years time frame.

    ReplyDelete
    Replies
    1. You can continue to buy on dips, the stock is well positioned for the next few years in my opinion.

      Delete

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