Shares of Finolex Industries surged over 7 % today amid the broader market trading in the green. Finolex Industries stock surged 7.49% intraday to Rs 160.8 against the previous close of Rs 149.60 on BSE. The stock was among the top gainers on BSE today. Finolex Industries shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock of the pipe maker has lost 27.78% in a year and fallen 22.58% since the beginning of this year. However, in a month, the stock has surged 16%. Total 2.31 lakh shares of the firm changed hands amounting to a turnover of Rs 3.65 crore on BSE.
Market cap of Finolex Industries surged to Rs 9,918 crore in the afternoon session today. The midcap stock surged to a 52-week high of Rs 224.95 on November 16, 2021 and a 52 week low of Rs 128 on May 12, 2022. In the second quarter of the current fiscal, loss of the firm stood at Rs 95.38 crore against a profit of Rs 233.25 crore in the year ago period. Sales slipped 12% to Rs 979.96 crore in Q2 against Rs 1113.46 sales in the corresponding quarter of the previous fiscal.
After the Q2 earnings, ICICI Securities said profitability of the company in the second half of the current fiscal could be better. In a report dated October 25, 2022, ICICI Securities assigned a buy call and a target price of Rs 181 on the stock.
ICICI Securities said, “We slash our FY23 PAT estimates by 48%, factoring in losses from Q2FY23, but keep FY24E largely unchanged as PVC resin prices have seen significant correction and have limited downside as they are closer to the pre-covid levels. We maintain BUY on the stock with a rolled over Sept’23 SoTP-based target price of Rs 181 (earlier: Rs173). We expect the company’s profitability to normalise going ahead as PVC resin prices stabilise and pipe volumes pick up from both agri and non-agri markets.”
Finolex Industries is a manufacturer of polyvinyl chloride (PVC) pipes and fittings, and PVC resins. The company operates through two segments: PVC resin and PVC pipes & fittings. It has manufacturing facilities in Maharashtra and Gujarat.
Also Read: Morgan Stanley stays tactically underweight on India stocks. Here’s one sector it is bullish on
Also Read: CMS Info Systems shares surge 59% from 52-week low, what lies ahead?