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Wednesday 2 July 2014

Update on Finolex Cables

The Economic Times reports that the IT ministry is looking to connect 50,000 gram panchayats through non optical fiber network this year followed by 2L gram panchayats in next 2 years. 

Finolex Cables, which operates and is the leader in this space and which I have written about in my earlier posts (read them here and here) continues to do well. 

With an IT savvy PM, I expect the broadband rollout plan to be aggressively followed through. The power cable business is also likely to pickup once the industrial cycle picks up.

I continue to be bullish and hold my previous opinion of the price target of between 240-360 and a FY15 EPS target of 16-18.

CMP - 199.

4 comments:

  1. Hi Abhishek, can you pls let me know a couple of stocks that looks undervalued and can be bought in SIP way at cmp?

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    Replies
    1. With the current rally, difficult to find good undervalued stocks. Good stocks already in the portfolio can also be a good choice for accumulation. I would more inclined to add onto stocks like Mayur Uniquoters, Financials (Kotak Mahindra Bank, Yes Bank, Shriram City Union, Bajaj Finance), Pharma (Shilpa Medicare, Poly Medicure, Ajanta Pharma, Alembic) and Sintex as an outside bet on industrial revival.

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  2. Dear Abhishek, You had started a thread on Lloyd electric 4 yrs back. Last qtr results were impressive. How would you evaluate the story now?

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    Replies
    1. Hi Harish,

      Lloyd is another value trap, I think. It continues to deliver decent results but never really does well. I is still trading at close of 0.6 P/B and 5 PE. I think its better to avoid, since there are so many other stocks with much better potential out there.

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