Value Research Stock Advisor - Finolex Cables PDF

6/8/2020 Value Research Stock Advisor - Finolex Cables
FINOLEX CABLES LTD. Latest
Engineering | Wires & cables
Premium Coverage
Set for a price surge

The country’s third-largest cable manufacturer is correcting missteps of the past. A strong brand, high
margins and excess cash give it the ammunition it needs. Current low valuations provide a good entry
point before its stock price surges up.
VIKAS VARDHAN • 08th June 2020
E lectrical wires is a simple business. Take some copper, cover it with plastic, sell it. Hundreds of
manufacturers do the same thing across the country. Finolex Cables beats just about everyone
in this industry. It takes away the highest margins in the industry, more than even its larger
competitors.
Finolex is no small company. It is the third-largest organised manufacturer of wires and cables in
the country. It is the largest in low-voltage wires that are used in homes to power appliances,
electronics and in of ces and commercial establishments. It is also the third-largest in optic bre
cable, an opportunity that holds immense potential as the government connects rural India to
high-speed internet and the upcoming 5G rollout.
https://www.valueresearchstocks.com/stocksreport/1158/finolex-cables-ltd 1/39
Exposure to the real estate sector that has been in doldrums in recent years and missteps in its
fast-moving electric goods (fans, lights and switches), saw Finolex trail behind ruthless
competitors that outspent it on ads and distribution. Read more on Why Finolex lost the market's
favour in the last four years.
The management now wants to correct those missteps - spending more on brand promotion and
reaching a greater number of retailers. The cash-bleeding electric goods business is looking to
breakeven this year. Meanwhile, valuations are still less than half of its 10-year average. All these
factors coming together make Finolex an attractive bet you should not miss.
What do we like about the company?

Market leader. Finolex is the market leader in the low-voltage wires with a market share of 20 per
cent. It is the third-largest in optic bre cables with a share of 13 per cent.
Premium quality, premium margin. Finolex is obsessed with premium quality. That quality has
allowed it to charge a premium for its wires and take in industry-leading margins.
Strong balance sheet. A stream of free cash ows over the years has enabled it to build a strong
balance sheet with zero debt with cash and equivalents close to Rs. 1300 crore - that’s one-third of
its current market cap.
Why should you invest now?

Getting its mojo back. Finolex has initiated a number of measures aimed to get its mojo back.
These include increasing ad spends and its distribution reach.
Electric goods looking to breakeven. When it does, the cash drain will stop and earnings will
start coming in. The management has guided more than 50 per cent growth in electric goods this
year.
Attractive valuations. Finolex trades at nine times earnings. That’s 45 per cent lower than its 10-
year median valuation of 20 times.
What is so good about the company?

Market leader in low-voltage wires. Low-voltage wires (1.1 KV and below) form a large part of
wire demand. These are used in homes to run electrical appliances, in of ces, commercial and
industrial establishments and in automobiles. Finolex is the market leader in low voltage wires
with a share of 20 per cent in the organised segment.
A determined focus on quality. The superior quality of its wires has allowed it to charge a
premium for its products, thus earning industry-leading margins of 17 per cent.
Backward integration. It sources the PVC used to cover the copper wire from group company,
Finolex Industries, that is in turn, the largest PVC manufacturer in the country. It also
manufactures and sells copper rods it uses in its wires. Thus, supply of major raw materials is
taken care of.
How big can it become?

Shift to organised players
The market for wires and cables is estimated at Rs. 45,000-50,000 crore, of which half belongs to
the organised sector. Increasing technological complexity, higher spending in brand investments
by a smaller number of pan-India majors and preference for higher-quality branded wires is taking
the market away from smaller, unorganised rms. Finolex, known for its high-quality wires and
being the third-largest player is likely to be a prime bene ciary of this shift.
Opportunities in wires and cables (83 per cent of revenues).
Finolex makes wires for a number of industries. These include real estate and construction (60 per
cent of sales), while power, industrial, agricultural and automobile sectors account for 10 per cent
each. Led by the growth in infrastructure, power and construction, the industry is growing by 15
per cent CAGR. Read more on the opportunities for wires and cables industry in the next couple of
years.
Opportunities in communication cables (14 per cent of the revenue).
With increasing demand for high-speed internet, communication cables have evolved from the
earlier-used jelly lled telephone cables to the higher speed optic bre. Finolex is the third-largest
optic bre cable manufacturer in the country. Its joint venture with Corning USA, inventor of optic
bre cable, gives it a technological advantage.
The government has allocated Rs. 6000 crore to connect one lakh gram panchayats. The National
Digital Communications Policy aims to provide broadband to every citizen with 50 Mbps speed
and xed-line broadband access to 50 per cent of households. Then there is the proposed 5G
rollout. All these projects and programmes will need optic bre that only major suppliers like
Finolex can provide.
Opportunities in fast-moving electrical goods (three per cent of TTM revenues).

Finolex entered the fast-moving electrical goods segment in 2016 with products like fans, CFLs
and switches. Four years going, it has not made any money in this business owing to two primary
missteps.
First, it used only its existing distribution network of 30,000 retailers. This was grossly
insuf cient. Competitors like Havells and Polycab have a distribution strength ve times stronger.
Second, it stuck to conventional strategy of lower ad spends. While that worked in wires, it
bombed in goods, especially when competitors Havells and Polycab spent four per cent and 1.5 per
cent of their respective revenue on advertising. Finolex spent less than one per cent.
Wizened from these missteps, the management is looking to take it's reach to 125,000 retailers by
the end of the year, bringing its distribution strength closer to larger competitors. It is also
spending more on advertising.
With the electric goods now looking to breakeven this year, this business is looking up for the rst
time in years. The management has guided revenue of Rs. 150 crore from electric goods this year -
higher than the Rs. 125 crore business it needs to breakeven.
History and management
Finolex was formed in 1956 by Prahlad Chhabria and his younger brother, Kishan. The company
was named by tweaking the words ne and exible into Finolex Cables. Read more about the
founders’ story. The sons of the two brothers, Deepak Chhabria and Prakash Chhabria, are locked
in a court battle since 2011 for control of Finolex Cables. The ongoing battle however, has not
impacted the business.
Ef ciency
Around 70 per cent of its business is on a cash and carry basis (customers pay cash upfront). This
has kept its working capital requirement lowest among peers. It generated Rs. 1100 crore in free
cash in the last ve years. This excess cash today accounts for 45 per cent of its net worth. Return
on capital averaged at 23 per cent per annum in this time.
Concerns
Continued slowdown in real estate. With around 60 per cent of revenue coming from real
estate, Finolex is vulnerable to the sector's fortune.
Slowdown in optic bre. Spends on 5G have taken a backseat in recent months as many telecom
companies battle liquidity and other issues. A prolonged delay could impact business. Also, close
to half of the company's optic bre business comes from the government. Any slowdown in
government orders could hit business as well.
Management feud intensifying. Any escalation of the management feud or an adverse outcome
in the court could impact the company.
Risk of copper price in ation. Copper accounts for over 50 per cent of sales. Any price in ation
in the commodity can impact margins.
Fall in optic bre prices. Following the trade war with the US, China slashed demand for optic
bre. This led to a global oversupply and consequently, a fall in price from $12 per km to less than
$5 per km. As a result, Finolex’s optic bre revenue contracted by 16 per cent in the last one year.
It is thus vulnerable to bre prices.
Valuation and outlook

At nine times earnings, Finolex trades 45 per cent lower than its 10-year median valuation. This is
the cheapest wire manufacturer you can buy. Since headwinds have already occurred, all negatives
are priced into the stock.
Finolex continues to throw off strong cash ows, earn high margins and return numbers and has
Rs. 1300 crore in cash. The management’s unrelenting focus on superior quality, its leadership
position in wires and cables and turning around of the electric goods business are likely to open a
new chapter in its history. Buy before its stock price surges up.
Disclosure:
Vikas Vardhan owned shares in Finolex Cables and Finolex Industries as on the date of publication of this report.
Independent Advisors LLP and its associates did not own shares in Finolex Cables or Finolex Industries as on the
date of publication of this report.
To view the latest stock holdings of the current Value Research Stock Advisor team, click here.
Finolex Cables (Risk Score: 26/31)

The results of our individual tests and their combined result. Simply put, the Risk Score
lower the score you nd here, the riskier the stock. 26/31
Company / Business
Has the company's earnings before tax been more than Rs 50 crore in the last 12 months?
Yes , the company’s earnings before tax was Rs 504 crore in the twelve months ended December
2019.
Can the company scale its business?
Yes , led by focus on infrastructure, power, construction and communications, the demand for
wires is growing at 15 per cent per annum. Finolex Cables should also bene t from the shift from
unorganised players to organised in the long term.
Does the company have a recognisable brand/s that are truly valued by customers?
Yes , Finolex has a strong brand, especially in the southern and western regions of India. Around
70 per cent of its revenue comes directly from consumer purchases, which re ects its strong brand
recall.
Does the company have a high repeat business?
No , the requirement for cables and wires for the retail consumers does not have a high repeat
usage by their very nature. Wires are long lasting and do not need replacing often. However, in the
high-voltage cables and communications, the company has high repeat usage from its customers.
Does the company have a credible moat?
Yes , a strong brand, a quality product and strong balance sheet to take on the competition are
sources of the moat it has.
Is the company equipped to deal with regulatory or geopolitical risks?
No , most of the manufacturing units and larger share of revenue comes from the southern and
western part of India. This poses a geographic risk.
Is the business of the company immune from easy replication by new players?
Yes , wires in the high voltage segment and specialised cables for communications and
automobiles cannot be easily replicated by new players due to their technological complexity and
high capital expenditure requirements.
Can the company's products withstand being easily substituted or outdated?
Yes , the company has an innovative R&D team and also has several foreign collaborations by
which it innovates and enhances its product ranges.
Does the company have pricing power?
Yes , it does not compromise on price and credit period to its dealers. This hurts the market share
growth, but keeps pro tability high for the company.
Do the company’s suppliers have signi cant bargaining power?
Yes , major raw materials like copper and PVC are commodities in nature. Most of it is
manufactured in-house or sourced from its associate, Finolex Industries.
Is the level of competition faced by the company relatively low?
No , the cable industry is highly competitive, especially in the low voltage cables segment.
Management
Do any of the founders still hold at least a 5 per cent stake in the company?
Yes , the promoter family still owns 36 per cent stake in the company.
Do the top three managers have over 15 years of combined leadership at the company?
Yes , Deepak Chhabria, executive director, has been working with the company since 1992.
Mahesh Viswanathan, deputy managing director and CFO, has been with the company since 2010.
Is management trustworthy? Is it transparent in disclosures & consistent with Sebi
guidelines?
Yes , it has a clean history and has been transparent in disclosures.
Is the company free of litigation in court or with the regulator that casts doubts on the
intention of the management?
No , there is an ongoing case regarding the ownership of the company between the cousins,
Deepak Chhabria and Prakash Chhabria of Finolex Industries.
Is the company’s accounting policy stable?
Yes , it has not made any major changes in its accounting policies in the recent past.
Is the company free from promoter pledging shares?
Yes , the promoter’s share is pledge-free.
Financial
Did the company generate a current and ve-year average return on equity of more than 15
per cent and return on capital of over 18 per cent?
Yes , the current RoE is 15 per cent and the average RoE in the past ve years is 17 per cent. The
latest RoCE and ve-year average ROCE, both stand at 23 per cent.
Was the company’s cash ow positive during the previous year and at least four out of the
last ve years?
Yes , cash ow from operations has been positive in all preceding ve nancial years.
Did the company increase its revenue by 10 per cent CAGR in the last ve years?
No , revenue has grown by a modest six per cent CAGR in the past ve years. This appears low
because of the changes in accounting standards and in commodity prices, passed on to the
customers.
Is the company's debt-to-equity ratio less than 1 or is its interest coverage ratio more than
2?
Yes , the company’s debt to equity stood at zero as it does not have any debt.
Is the company free from reliance on huge working capital for day-to-day affairs?
Yes , working capital requirement is moderate at 60 days, but it has increased in the last three
years from 37 days. This has happened due to high inventory days. However, this is still under
control.
Can the company run its business without relying on external funding in the next three
years?
Yes , it has generated healthy cash ows in the past ve years aggregating Rs 963 crore. It has a
low capex plan compared to peers and has a healthy cash balance of Rs 1,296 crore with zero debt.
Have the company’s short-term borrowings remained stable or declined (not increased by
greater than 15 per cent)?
Yes , the company has no short term borrowings.
Is the company free from meaningful contingent liabilities?
Yes , contingent liability stood at Rs 265 crore as on March 31, 2019, which was low given the net
worth of Rs 2,737 crore. The contingent liability pertains to the sales tax and excise duty disputes
pending with the authorities.
Valuation
Does the stock offer operating earnings yield of more than risk-free return on its
enterprise value?
Yes , the operating earnings yield is 16 per cent, which is higher than the prevailing risk-free
return (SBI's 10-year FD rate of 5.4 per cent).
Is the stock’s price-to-earnings less than its ve or 10-year median level?
Yes , the current price to earnings is 8.8 times, which is lower than its ten-year median level of 16
times.
Is the stock’s price-to-book value less than its ve or 10-year average level?
Yes , the current price to book is 1.34 times, which is lower than its ten-year median of 2.2 times.
To sum up
Is it a solid business with able management and a great balance sheet?
Yes , Finolex Cables is one of the oldest cable manufacturers in the country. It has been one of
India’s biggest innovators since that time. The management has faced several structural problems
along the way, but they managed to overcome their challenges deftly. Finolex Cables has a strong
balance sheet with minimal debt and healthy cash reserves.
Does the company believe in taking care of the interests of all the stakeholders —
customers, employees, shareholders?
Yes , Finolex Cables has rewarded its equity holders with regular dividends in the last two
decades. The company is very well known for its CSR activities through its educational institutes
in various cities in Maharashtra.
Do you want to know more about this company? Are you willing to spend more time
digging out information about it?
Yes , Finolex Cables was built from scratch by very competent brothers, Pralhad and Kishan
Chhabria. They have led the company through the license raj and the intense competition of the
post license-raj era. Finolex Cables has continuously evolved itself to become a one-stop shop for
all kinds of electrical wires, ranging from the high voltage to optic bres and specialised
automobile cables. It would be interesting to see how it leverages its strong balance sheet and
brand to incubate the FMEG business, which is fast evolving in the country.
Disclosure:
Finolex Cables - Headwinds and Tailwinds

Factors that will call for buying the stock and for selling it.
Tailwinds (When you would stay invested and consider buying more)
• Finolex continues the focus on pro tability and margins, and commands a high exposure to B2C
business.
• It is able to re ect its strong brand in the FMEG (electrical goods) segment too and is able to
scale it up to Rs 500 crore in the next three years.
• It is able to use the surplus cash for attractive acquisitions opportunities.

• Revival in the telecom sector and the auction of 5G spectrum, which will lead to demand for the
optic bre.
• Pick up in demand for the automobile sector.
Headwinds (When you should consider selling or cutting exposure)

• If the management feud, which has not impacted the business so far, gets ugly and starts
interfering in management decisions.
• If the recovery in the real estate sector takes more time than expected.
Disclosure:
Finolex loses the market's favour in the last four years

The story on how Finolex conceded market share to more aggressive competitors while the electric
goods business lost money, leading to a de-rating of the stock
T he demonetisation of high-value currency in 2016 and implementation of GST and strict

regulations (RERA) saw the real estate sector face one of its toughest times in many years.
Construction activity has still not returned to pre-demonetisation levels. With half of its wire
revenues generated from this sector, Finolex was hit.
It was at this time that aggressive competitors like Havells and Polycab outspent it on ad spends
and distribution reach and launched price wars. Finolex did not participate in the price wars in a
bid to protect its margin and return ratios that have remained intact even today, but it had to
contend with a lower market share.
Then, it also had on its hand the fast moving electric goods business that was losing money. The
company failed to turn this business into black.
The markets didn't take too kindly to Finolex's misfortunes and de-rated the stock from a
valuation of 21 times (over the last three years), to nine times earnings.
A low valuation is not the only reason why you should look at Finolex. It has generated the highest
free cash ows in its industry post-demonetisation. Its return ratios are among the highest in the
industry and its management is correcting the mistakes made in electric goods in the past. Ad
spends and distribution reach are both slated to go up. Plus, the electric goods business is now
looking to breakeven this year.
(This article is linked to our coverage of Finolex Cables)
Disclosure:
The founders' story

How two migrant brothers set up Finolex after partition and their journey as they navigated
upheavals in the way
T he Finolex group was established by Prahlad and Kishan Chhabria. Their family had a
wholesale cloth business in Karachi in the pre-independence days. Following Partition and
the death of their father, the brothers settled in Pune.
In the early days, Prahlad Chhabria did odd jobs such as cleaning shops, preparing refreshments,
collecting money from businesses and even sold cloth as a street vendor. He later shifted to the
business of trading wires and electronic equipment between Mumbai and Pune. Given Prahlad’s
marketing skills and Kishan’s technical knowledge, this business became immensely successful,
even receiving orders from the Indian army. Most of the wires made in India at the time were
coated with rubber which used to break. The alternative was imported PVC-coated wires. Finolex,
then known as Indian Cable Industries, became the rst Indian company to manufacture PVC-
coated wires in 1958. It also established a presence in the automobile wire segment.
The company changed its name to Finolex in 1973. (It had previously established a brand in that
name.) It entered into partnerships with various foreign players to improve quality. It was listed in
1983 and soon afterwards became the rst Indian company to manufacture Jelly Filled Telephone
(JFT) wires used for telephone lines. It also began making PVC resins (its primary raw material),
along with PVC pipes and related products, establishing Finolex Industries in the mid-1990s.
Pralhad Chhabria died in May 2016 and the company passed into the hands of the second
generation. Currently, Prahlad’s son, Prakash Chhabria, is the Chairman of Finolex Industries and
his nephew Deepak Chhabria is Chairman of Finolex Cables.
How Finolex managed upheavals

In the late 1970s, the Government of India introduced the Copper Control Order to discourage the
use of copper, targeting solid copper wire of 18 gauge and above. Aluminium was encouraged as an
alternative. Finolex responded by making wires of very small diameter, which were bunched
together. This product effectively circumvented the order and became Finolex’s signature product.
Another challenge was the government quotas for the purchase of raw materials for PVC wires
(which forced the company to import them). This greatly hampered Finolex’s growth. Pralhad
Chhabria in his autobiography, 'There's No Such Thing as a Self-Made Man' wrote, “For a
businessman in my position, it was like being forced by the government to live in a small room
without suf cient light or air.”
In 1985, the company decided to manufacture its primary raw material (PVC resins) to address this
challenge. However, the cost of this project was Rs 150 crore at a time when its assets were only
worth Rs 3 crores. It managed to secure a loan of about Rs 200 crore from IDBI bank, along with a
license to manufacture the product. It also entered into partnerships with various French and
German companies to bene t from their technical expertise and got the project up and running.
This venture was successful and greatly bene ted the company in the long run.
Disclosure:
Opportunities for the wires and cables industry in the next couple of
years
The various sectors Finolex supplies its wires and cables to and the opportunities in each
Power cables are expected to see demand move up as power transmission and distribution are
made more ef cient across the country. The government launched US$ 5 billion of transmission-
line tenders in June last year in phases to reach a 175 GW target by 2022. India’s power sector is
forecast to attract investment worth Rs 9-9.5 trillion (US$ 128.24- 135.37 billion) between FY19-
FY23 (Source: IBEF).
Housing wires are expected to gain as more houses are built to accommodate the country's
burgeoning population. As per IBEF estimates, the real estate sector in India is expected to reach
US$ 1 trillion by 2030. By 2025, it will contribute 13 per cent to the country’s GDP. Under the
Housing for All scheme, 60 million houses are to be built, which include 40 million in rural areas
and 20 million in urban areas by 2022.
Flexible cables are likely to see demand from the automobile industry and the railways. The
company has invested in newer technology to manufacture cables for solar power and automobiles
using the Electron Beam Technology. So far, the solar cables were made with a chemical process.
The new wires will have the insulation to withstand higher temperatures with minimal wear and
tear and makes the insulation more abrasion resistant.
Control and instrumentation cables are expected to gain as more industries automate and as
the railways shifts to more electric instrumentation and controls. Indian Railways plans to run 100
per cent on electricity by 2024 and become a net-zero emission network by 2030, which is about
125,000 km of track length and nearly 68,000 km of route length.
Opportunities in communication cables

Demand for optic bre has a long run ahead. The Bharat Net programme aims to connect 2.5 lakh
gram panchayats with a minimum of 100 Mbps bandwidth through optic bre. The object of the
programme is to enable rural India to access electronic governance, banking, commerce, learning,
and health services. Only around 44 per cent of the total 2.5 lakh gram panchayats have been
connected so far. In the 2020-21 Budget, the government proposed to allocate Rs. 6000 crore to
the programme and connect a further one lakh gram panchayats.
Then there is the National Digital Communications Policy that aims to provide broadband to every
citizen with 50 Mbps speed, xed line broadband access to 50 per cent of households, internet
connectivity to all uncovered areas and 10 million public Wi-Fi hotspots by 2022. The policy aims
to attract investments of around $100 billion.
These initiatives, coupled with an increasing use of smartphones, even in rural areas is expected
to increase internet penetration to 60 per cent of the country's households by FY 2023. All these
projects and programmes will need optic bre. Optic bre manufacturers stand to gain from this
transition.
Disclosure:
Snapshot
NSE Price Change | 1 Day P/E P/E Dividend Yield

R257.40 R-7.25 | -2.74% 8.72 1.33 1.75%
As on 08-Jun-2020 15:51
Detailed Quotes
LAST 1 DAY PREV
EXCHANGE & TIME OPEN VOLUME 1-DAY RANGE
PRICE CHANGE (%) CLOSE
NSE 08-Jun-2020 15:51 257.40 -2.74 271.00 264.65 2,38,299 249.25 - 273.00
BSE 08-Jun-2020 257.00 -3.04 287.00 265.05 40,122 250.65 - 287.00
About The Company Key Facts

Business: Manufacture of other electronic Market Cap: R 3,930.54 Cr
and electric wires and cables (insulated
Revenue (TTM): R 3,048.94 Cr
wire and cable made of steel, copper,
aluminium) Earnings (TTM): R 353.97 Cr
Incorporated: 1967 Cash: R 816.72 Cr
Chairman: D K Chhabria Total Debt: R 0.55 Cr
Managing Director: -- Promoters' Ownership: 35.92%
Group: Finolex Liquidity: High
Listing: NSE: FINCABLES, BSE: 500144 52 Week Range: R 162.40 - 480.10
Headquarters: Pune, Maharashtra Face Value: R2.00

Website: www. nolex.com Shares Outstanding: 15,29,39,345
10 Years Aggregate:
CFO: 1,837.03 Cr
EBITDA: 2,847.57 Cr
Net Profit: 1,918.56 Cr
Price Graph
Please wait while we are fetching data...
Stock Performance
Trailing (%) Annual (%)
S&P BSE S&P BSE
TIME FINOLEX S&P BSE INDIA FINOLEX S&P BSE INDIA
SMALL YEAR SMALL
PERIOD CABLES INFRASTRUCTURE* CABLES INFRASTRUCTURE
CAP* CAP
YTD -30.64 -21.08 -13.46 2019 -18.37 -6.85 -11.27
1 2018 -35.65 -23.41 -21.27

12.89 12.11 11.32
month
2017 71.04 59.64 35.22
3
-18.57 -9.89 -12.77
months 2016 62.37 1.77 11.78
1 Year -42.70 -34.97 -20.39 2015 -3.69 6.76 -8.60
3 Years -20.30 -14.13 -8.36 2014 219.61 69.24 --
5 Years 1.53 -5.18 1.78 2013 42.75 -11.23 --
10
18.06 -- 3.21
Years
As on 08-Jun-2020
*As on 05-Jun-2020
Essential Checks
Altman Z-Score 9.09 Piotroski F-Score 6 Modi ed C-Score 4
Is there a threat to this How well has this company Can creative accounting be
company's solvency in the done in the past one year? detected through the nancial
future? numbers?
Not Likely Average Maybe
9.09 6 4
Valuation 10 Year
Price to Earnings Price to Book Earnings Yield 16.21%
8.73 1.33 EBIT/Enterprise value
PEG 0.31
5.90 19.93 72.36 0.90 2.96 7.65
Min Median Max Min Median Max
Price/ Earnings to
growth ratio
Key Ratios
Revenue (R Cr) EPS (R)

4k 30
3k
20
2k
10
1k
0 0
Mar-16 Mar-17 Mar-18 Mar-19 Dec-19* Mar-16 Mar-17 Mar-18 Mar-19 Dec-19*
RoE (%)
20
15
10
5 Please wait while we are fetching data...
0
Mar-16 Mar-17 Mar-18 Mar-19 Dec-19*
*TTM (Trailing Twelve Months) data based on income statement of last 4 quarters and interim half yearly
balance sheet.
Key Ratios and Highlights
GROWTH (%) QUARTERLY ANNUAL (TTM)
ANNUAL (TTM) QOQ YOY 1-YEAR 3-YEARS 5-YEARS
Revenue -1.87 -6.30 9.33 9.25 5.46
Operating Pro t 4.02 -1.95 4.29 12.44 14.09
Net Pro t -14.15 3.97 -3.94 11.41 10.63
EPS -19.02 10.13 -3.94 11.41 10.63
Book Value -- -- 11.20 15.20 17.20
KEY RATIOS (%) AVERAGE ANNUAL (TTM)
PARTICULARS 3-YEAR 5-YEARS TTM 20190301 20180301
Operating Margin 19.15 17.51 17.85 17.91 18.54
Net Margin 11.75 10.69 11.25 9.65 8.88
Return on Equity 16.88 16.96 -- 11.89 11.28
KEY RATIOS (%) AVERAGE ANNUAL (TTM)
PARTICULARS 3-YEAR 5-YEARS TTM 20190301 20180301
Return on Capital 23.95 23.11 -- 19.77 20.92
Debt to Equity (x) -- -- 0.00 0.00 0.00
Financials
Annual Consolidated
MAR- MAR- MAR- MAR- MAR- MAR- MAR- MAR- MAR- MAR-
TTM
19 18 17 16 15 14 13 12 11 10
Income Statement (R Cr )
Operating
3,048.94 3,077.79 2,815.12 2,444.84 2,360.32 -- -- --
Revenue
Other Income 96.98 104.52 86.66 59.35 56.13 -- -- --
Total Income 3,145.92 3,182.31 2,901.78 2,504.19 2,416.45 -- -- --
Total Expenditure 2,601.59 2,631.00 2,379.80 2,048.91 2,001.98 -- -- --
Increase/Decrease
-- -73.03 -31.91 -118.33 -13.09 -- -- --
in Stock
Raw Material
-- 2,337.97 2,066.09 1,845.19 1,734.07 -- -- --
Consumed
Power & Fuel

-- 47.98 47.47 43.48 42.42 -- -- --
Cost
Employee Cost -- 129.82 135.46 119.19 107.22 -- -- --
Other
Manufacturing -- 39.68 39.19 30.28 30.62 -- -- --
Expenses
General and
Administration -- 39.16 26.02 22.46 24.09 -- -- --
Expenses
Selling and
Distribution -- 73.01 70.66 59.15 49.90 -- -- --
Expenses
Miscellaneous
-- 36.41 26.82 47.49 26.75 -- -- --
Expenses
Operating Pro t 544.33 551.31 521.98 455.28 414.47 -- -- --
Interest 1.09 0.92 1.44 4.29 8.95 -- -- --
PBDT 543.24 550.39 520.54 450.99 405.52 -- -- --
Depreciation 39.39 40.55 43.80 48.03 57.99 -- -- --
PBT &
503.85 509.84 476.74 402.96 347.53 -- -- --
Exceptional Items
Exceptional Items -- -- -- -- -- -- -- --
Pro t before Tax 503.85 509.84 476.74 402.96 347.53 -- -- --
Provision for Tax 149.88 202.75 219.03 103.44 87.53 -- -- --
Pro t after Tax 353.97 307.09 257.71 299.52 260.00 -- -- --
Minority Interest -- -- -- -- -- -- -- --
Share of Associate 96.67 100.38 72.40 100.73 -11.14 -- -- --
Consolidated
450.64 407.47 330.11 400.25 248.86 -- -- --
Pro t
Liabilities (R Cr )
Shareholder's
2,861.10 2,737.08 2,428.96 2,140.88 1,775.97 -- -- --
Funds
Share Capital 30.59 30.59 30.59 30.59 30.59 -- -- --
Share Warrants &

-- -- -- -- -- -- -- --
Outstandings
Total Reserves 2,830.51 2,706.49 2,398.37 2,110.29 1,745.38 -- -- --
Non-Current
152.50 155.87 115.20 25.30 55.42 -- -- --
Liabilities
Long-Term
0.37 0.38 0.55 0.83 25.75 -- -- --
Borrowings
Deferred
Tax/Payment 137.45 146.07 107.68 18.27 24.36 -- -- --
Liabilities
Other Long Term

5.85 -- -- 0.19 0.40 -- -- --
Liabilities
Long Term Trade

-- -- -- -- -- -- -- --
Payables
Long Term
8.83 9.42 6.97 6.01 4.91 -- -- --
Provisions
Current Liabilities 224.22 261.19 239.70 273.41 267.33 -- -- --
Short Term
-- -- -- -- -- -- -- --
Borrowings
Trade Payables -- 208.27 177.45 188.29 89.88 -- -- --
Other Current
-- 25.78 23.78 37.48 150.12 -- -- --
Liabilities
Short Term
6.64 27.14 38.47 47.64 27.33 -- -- --
Provisions
Total Liabilities 3,237.82 3,154.14 2,783.86 2,439.59 2,098.72 -- -- --
Assets (R Cr )
Non-Current
1,339.08 1,462.12 1,273.98 1,184.15 916.12 -- -- --
Assets
Fixed Assets 389.72 404.21 408.99 414.87 432.19 -- -- --
Capital Work in
13.64 10.36 5.20 8.15 3.14 -- -- --
Progress
Non Current
932.23 999.09 821.65 688.81 474.22 -- -- --
Investments
Long Term Loans

3.49 28.73 19.98 19.56 6.57 -- -- --
& Advances
Other Non
80.74 19.73 18.16 52.76 -- -- -- --
Current Assets
Current Assets 1,831.64 1,692.02 1,509.88 1,255.44 1,182.60 -- -- --
Inventories 527.64 587.20 499.06 462.01 329.30 -- -- --
Currents
931.89 767.92 700.98 470.50 406.62 -- -- --
Investments
Cash and Bank 50.08 48.80 103.61 175.84 218.73 -- -- --
Trade Receivables 216.00 210.88 174.92 124.39 125.92 -- -- --
Short Term Loans

-- 65.03 7.73 15.27 102.03 -- -- --
and Advances
Other Current
106.03 12.19 23.58 7.43 -- -- -- --
Assets
Total Assets 3,237.82 3,154.14 2,783.86 2,439.59 2,098.72 -- -- --
Total Debt* -- 0.55 0.84 1.24 50.75 -- -- --
Net Current
1,607.42 1,430.83 1,270.18 982.03 915.27 -- -- --
Assets
Contingent
-- 264.85 315.23 194.96 194.11 -- -- --
Liabilities
Cash ow (R Cr )
Cash From
Operating -- 154.06 235.68 212.76 339.41 -- -- --
Activities
Pro t Before Tax -- 509.84 476.74 503.69 416.22 -- -- --
Adjustment -- -45.29 -14.31 -71.50 53.02 -- -- --
Changes In
-- -148.93 -92.25 -91.52 -59.69 -- -- --
working Capital
Tax Paid -- -161.56 -134.50 -127.91 -70.14 -- -- --
Cash Flow from

Investing -- -110.03 -134.46 -126.11 -195.23 -- -- --
Activities
Cash from
Financing -- -74.52 -56.75 -75.38 -63.57 -- -- --
Activities
Net Cash In ow /
-- -30.49 44.47 11.27 80.61 -- -- --
Out ow
Ratios
Financials
Adjusted EPS (Rs) 29.47 26.64 21.58 26.17 16.27 -- -- --
Cash EPS (Rs) 29.47 22.73 19.71 22.72 20.79 -- -- --
Adjusted Book
192.52 178.95 158.81 139.97 116.11 -- -- --
Value (Rs)
Dividend per
1.70 4.50 4.00 3.00 2.50 -- -- --
Share (Rs)
Cash Flow per

-- 10.07 15.41 13.91 22.19 -- -- --
Share (Rs)
Free Cash Flow

-- 10.09 11.27 14.43 16.05 -- -- --
per Share (Rs)
Pro tability
ROCE (%) -- 19.77 20.92 20.52 27.48 -- -- --
ROE (%) -- 11.89 11.28 15.29 22.12 -- -- --
ROA (%) 21.86 10.34 9.87 13.20 16.28 -- -- --
Operating Margin
17.85 17.91 18.54 18.62 17.56 -- -- --
(%)
Net Margin (%) 11.25 9.65 8.88 11.96 10.76 -- -- --
Cash Pro t Margin

-- 11.30 10.45 13.01 12.35 -- -- --
(%)
Growth
Revenue Growth
-- 9.33 15.15 3.58 258.58 -- -- --
(%)
Operating pro t
-- 5.62 14.65 9.85 -- -- -- --
Growth (%)
Net Pro t Growth

-- 19.16 -13.96 15.20 749.95 -- -- --
(%)
EPS Growth (%) -- 23.43 -17.52 60.83 303.47 -- -- --
Book Value
-- 12.69 13.46 20.55 208.85 -- -- --
Growth (%)
Solvency
Debt to Equity 0.00 0.00 0.00 0.00 0.03 -- -- --
Short term debt

-- -- -- -- -- -- -- --
to equity
Current Ratio 8.17 6.48 6.30 4.59 4.42 -- -- --
Quick Ratio 5.82 4.23 4.22 2.90 3.19 -- -- --
Interest Coverage 463.25 555.17 332.07 94.93 39.83 -- -- --
Operating Ef ciency
Debtors to sales
7.08 6.85 6.21 5.09 5.33 -- -- --
(%)
Asset Turnover 1.88 1.04 1.10 1.18 1.61 -- -- --
Receivable days -- 22.88 18.94 17.10 13.97 -- -- --
Inventory Days -- 64.41 60.81 54.07 35.24 -- -- --
Payable days -- 26.77 27.72 23.90 11.74 -- -- --
Cash Conversion
-- 60.51 52.03 47.27 37.47 -- -- --
Cycle
Valuation
Price / Earnings 9.00 17.92 31.01 19.74 17.23 -- -- --
Price / Book Value 1.38 2.67 4.21 3.69 2.41 -- -- --
Dividend Yield (%) 1.70 0.94 0.60 0.58 0.89 -- -- --
EV/EBITDA 5.95 13.16 19.41 16.97 9.94 -- -- --
Close Price (Rs) 371.10 475.45 674.85 516.55 281.20 -- -- --
High Price (Rs) 507.85 738.00 757.90 522.00 304.90 -- -- --
Low Price (Rs) 345.55 357.00 451.50 264.70 202.20 -- -- --
Market Cap (Rs Cr) 3,930.54 7,301.07 10,236.94 7,901.40 4,287.95 -- -- --
*TTM (Trailing Twelve Months) data based on income statement of last 4 quarters and interim half yearly balance
sheet.
Annual Standalone
MAR- MAR- MAR- MAR- MAR- MAR- MAR- MAR- MAR- MAR-
TTM
19 18 17 16 15 14 13 12 11 10
Income Statement (R Cr )
Operating
3,048.94 3,077.79 2,815.12 2,444.84 2,360.32 2,449.09 2,359.04 2,270.68
Revenue
Other Income 137.17 144.71 132.88 100.21 64.44 58.47 48.35 24.17
Total Income 3,186.11 3,222.50 2,948.00 2,545.05 2,424.76 2,507.56 2,407.39 2,294.85
Total Expenditure 2,639.86 2,649.17 2,398.28 2,073.41 2,021.43 2,189.33 2,110.85 2,041.02
Increase/Decrease
-- -73.03 -31.91 -118.33 -13.09 51.59 -22.84 -29.29
in Stock
Raw Material
-- 2,337.97 2,066.09 1,845.19 1,734.07 1,736.35 1,755.66 1,690.69
Consumed
Power & Fuel

-- 47.98 47.47 43.48 42.42 30.84 37.07 40.69
Cost
Employee Cost -- 129.82 135.46 119.19 107.22 93.96 84.83 84.59
Other
Manufacturing -- 39.68 39.19 30.28 30.62 59.36 56.99 54.17
Expenses
General and
Administration -- 39.16 26.02 22.46 24.05 12.96 12.48 12.80
Expenses
Selling and
Distribution -- 73.01 70.66 59.15 49.90 170.33 144.36 155.57
Expenses
Miscellaneous
-- 54.58 45.30 71.99 46.24 33.94 42.30 31.80
Expenses
Operating Pro t 546.25 573.33 549.72 471.64 403.33 318.23 296.54 253.83
Interest 1.09 0.92 1.44 4.29 8.95 13.65 14.48 13.38
PBDT 545.16 572.41 548.28 467.35 394.38 304.58 282.06 240.45
Depreciation 39.39 40.55 43.80 48.03 57.99 63.96 48.43 46.63
PBT &
505.77 531.86 504.48 419.32 336.39 240.62 233.63 193.82
Exceptional Items
Exceptional Items -- -- -- -- -- 22.52 10.38 -23.01
Pro t before Tax 505.77 531.86 504.48 419.32 336.39 263.14 244.01 170.81
Provision for Tax 135.55 187.77 146.28 103.44 87.53 64.48 36.33 25.54
Pro t after Tax 370.22 344.09 358.20 315.88 248.86 198.66 207.68 145.27
Liabilities (R Cr )
Shareholder's
2,545.25 2,439.67 2,193.90 1,877.44 1,595.59 1,264.81 1,103.37 924.32
Funds
Share Capital 30.59 30.59 30.59 30.59 30.59 30.59 30.59 30.59
Share Warrants &

-- -- -- -- -- -- -- --
Outstandings
Total Reserves 2,514.66 2,409.08 2,163.31 1,846.85 1,565.00 1,234.22 1,072.78 893.73
Non-Current
61.49 68.14 42.45 25.30 55.42 86.64 161.53 237.86
Liabilities
Long-Term
0.37 0.38 0.55 0.83 25.75 51.21 126.69 145.15
Borrowings
Deferred
Tax/Payment 46.44 58.34 34.93 18.27 24.36 30.05 29.52 34.47
Liabilities
Other Long Term

5.85 -- -- 0.19 0.40 0.41 1.79 1.36
Liabilities
Long Term Trade

-- -- -- -- -- -- -- --
Payables
Long Term
8.83 9.42 6.97 6.01 4.91 4.97 3.53 56.88
Provisions
Current Liabilities 224.22 261.19 239.70 273.41 267.34 282.33 299.07 241.96
Short Term
-- -- -- -- -- 0.03 -- 17.11
Borrowings
Trade Payables -- 208.27 177.45 188.29 89.88 65.48 52.68 63.29
Other Current
-- 25.78 23.78 37.48 150.13 174.88 159.04 139.12
Liabilities
Short Term
6.64 27.14 38.47 47.64 27.33 41.94 87.35 22.44
Provisions
Total Liabilities 2,830.96 2,769.00 2,476.05 2,176.15 1,918.35 1,633.78 1,563.97 1,404.14
Assets (R Cr )
Non-Current
932.22 1,076.98 966.17 920.71 735.75 719.65 763.88 700.96
Assets
Fixed Assets 389.72 404.21 408.99 414.87 432.19 463.77 495.84 412.11
Capital Work in
13.64 10.36 5.20 8.15 3.14 6.67 10.70 35.73
Progress
Non Current
525.37 613.95 513.84 425.37 293.85 225.66 226.08 217.39
Investments
Long Term Loans

3.49 28.73 19.98 19.56 6.57 23.55 31.26 35.73
& Advances
Other Non
80.74 19.73 18.16 52.76 -- -- -- --
Current Assets
Current Assets 1,831.64 1,692.02 1,509.88 1,255.44 1,182.60 914.13 800.09 703.18
Inventories 527.64 587.20 499.06 462.01 329.30 318.62 352.40 329.63
Currents
931.89 767.92 700.98 470.50 406.62 268.56 177.06 106.70
Investments
Cash and Bank 50.08 48.80 103.61 175.84 218.73 138.37 64.86 39.81
Trade Receivables 216.00 210.88 174.92 124.39 125.92 118.61 145.17 149.65
Short Term Loans

-- 65.03 7.73 15.27 102.03 48.86 42.77 57.89
and Advances
Other Current
106.03 12.19 23.58 7.43 -- 21.12 17.83 19.50
Assets
Total Assets 2,830.96 2,769.00 2,476.05 2,176.15 1,918.35 1,633.78 1,563.97 1,404.14
Total Debt* -- 0.55 0.84 1.24 50.75 126.73 147.03 180.61
Net Current
1,607.42 1,430.83 1,270.18 982.03 915.26 631.80 501.02 461.22
Assets
Contingent
-- 227.85 232.18 129.33 194.11 238.87 288.00 300.38
Liabilities
Cash ow (R Cr )
Cash From
Operating -- 154.06 235.68 212.76 275.63 182.69 224.39 148.95
Activities
Pro t Before Tax -- 531.86 504.48 419.32 336.39 263.14 244.01 170.81
Adjustment -- -67.31 -42.05 13.54 64.26 15.05 16.66 67.72
Changes In
-- -148.93 -92.25 -91.52 -54.89 -48.11 -14.35 -56.05
working Capital
Tax Paid -- -161.56 -134.50 -128.58 -70.13 -47.39 -21.93 -33.53
Cash Flow from

Investing -- -110.03 -134.46 -126.11 -127.47 -186.34 -67.17 -32.48
Activities
Cash from
Financing -- -74.52 -56.75 -75.38 -67.57 -39.33 -61.05 -45.56
Activities
Net Cash In ow /
-- -30.49 44.47 11.27 80.59 -42.98 96.17 70.91
Out ow
Ratios
Financials
Adjusted EPS (Rs) 24.21 22.50 23.42 20.65 16.27 12.99 13.58 9.50
Cash EPS (Rs) 24.21 25.15 26.28 23.79 20.06 17.17 16.74 12.55
Adjusted Book
171.69 159.51 143.44 122.75 104.32 82.69 72.14 60.43
Value (Rs)
Dividend per
1.70 4.50 4.00 3.00 2.50 1.80 1.60 1.20
Share (Rs)
Cash Flow per

-- 10.07 15.41 13.91 18.02 11.94 14.67 9.74
Share (Rs)
Free Cash Flow

-- 12.51 17.84 15.50 15.63 11.93 9.58 5.62
per Share (Rs)
Pro tability
ROCE (%) -- 22.99 24.84 24.03 22.74 20.95 21.95 17.74
ROE (%) 14.85 14.85 17.60 18.19 17.40 16.78 20.48 16.85
ROA (%) 13.44 13.12 15.40 15.43 14.01 12.42 13.99 11.09
Operating Margin
17.92 18.63 19.53 19.29 17.09 12.99 12.57 11.18
(%)
Net Margin (%) 11.62 10.68 12.15 12.41 10.26 7.92 8.63 6.33
Cash Pro t Margin

-- 12.50 13.94 13.63 11.92 10.20 10.20 7.92
(%)
Growth
Revenue Growth
-0.06 9.33 15.15 3.58 -3.62 3.82 3.89 10.01
(%)
Operating pro t
-2.81 4.29 16.56 16.94 26.74 7.31 16.83 20.20
Growth (%)
Net Pro t Growth

8.58 -3.94 13.40 26.93 25.27 -4.34 42.96 47.95
(%)
EPS Growth (%) 8.59 -3.94 13.40 26.93 25.27 -4.34 42.96 47.95
Book Value
-- 11.20 16.86 17.66 26.15 14.63 19.37 15.48
Growth (%)
Solvency
Debt to Equity 0.00 0.00 0.00 0.00 0.03 0.10 0.13 0.20
Short term debt

-- -- -- -- -- 0.00 -- 1.85
to equity
Current Ratio 8.17 6.48 6.30 4.59 4.42 3.24 2.68 2.91
Quick Ratio 5.82 4.23 4.22 2.90 3.19 2.11 1.50 1.54
Interest Coverage 465.01 579.11 351.33 98.74 38.59 20.28 17.85 13.77
Operating Ef ciency
Debtors to sales
7.08 6.85 6.21 5.09 5.33 4.84 6.15 6.59
(%)
Asset Turnover 1.11 1.17 1.24 1.30 1.45 1.61 1.69 1.85
Receivable days -- 22.88 18.94 17.10 17.33 18.70 21.44 19.86
Inventory Days -- 64.41 60.81 54.07 45.93 47.56 49.59 45.99
Payable days -- 26.77 27.72 23.90 14.03 10.02 9.87 10.68
Cash Conversion
-- 60.51 52.03 47.27 49.23 56.24 61.15 55.18
Cycle
Valuation
Price / Earnings 10.95 21.22 28.58 25.01 17.23 21.84 8.07 4.79
Price / Book Value 1.54 2.99 4.67 4.21 2.69 3.43 1.52 0.75
Dividend Yield (%) 1.70 0.94 0.60 0.58 0.89 0.63 1.46 2.64
EV/EBITDA 5.93 12.65 18.44 16.38 10.21 13.60 5.93 3.30
Close Price (Rs) 371.10 475.45 674.85 516.55 281.20 284.75 110.70 45.60
High Price (Rs) 507.85 738.00 757.90 522.00 304.90 306.50 119.00 64.20
Low Price (Rs) 345.55 357.00 451.50 264.70 202.20 108.30 45.45 30.00
Market Cap (Rs Cr) -- 7,301.07 10,236.94 7,901.40 4,287.95 4,339.19 1,676.33 695.92
*TTM (Trailing Twelve Months) data based on income statement of last 4 quarters and interim half yearly balance
sheet.
Quarterly Consolidated
DEC-19 SEP-19 JUN-19 MAR-19 DEC-18 SEP-18 JUN-18 JUN-17 JUN-16
Income (R Cr )
Revenue 702.36 715.76 807.74 823.08 749.56 713.97 791.18 -- --
Other Income 26.52 24.52 21.97 23.97 19.34 18.23 20.10 -- --
Total Income 728.88 740.28 829.71 847.05 768.90 732.20 811.28 -- --
Total Expenditure 602.47 618.76 701.74 678.62 639.97 628.13 661.40 -- --
Operating Pro t 126.41 121.52 127.97 168.43 128.93 104.07 149.88 -- --
Interest 0.37 0.23 0.22 0.27 0.03 0.32 0.30 -- --
Exceptional Items -- -- -- -- -- -- -- -- --
PBDT 126.04 121.29 127.75 168.16 128.90 103.75 149.58 -- --
Depreciation 9.64 9.80 9.90 10.05 9.73 11.03 9.74 -- --
PBT 116.40 111.49 117.85 158.11 119.17 92.72 139.84 -- --
Tax 33.11 14.47 41.05 61.25 39.06 45.14 56.84 -- --
Pro t after Tax 83.29 97.02 76.80 96.86 80.11 47.58 83.00 -- --
Minority Interest -- -- -- -- -- -- -- -- --
Share of Associate 19.43 29.82 20.15 27.27 13.16 24.22 34.25 -- --
Consolidated Pro t 102.72 126.84 96.95 124.13 93.27 71.80 117.25 -- --
Equity Capital 30.59 30.59 30.59 30.59 30.59 30.59 30.59 -- --
Ratios (R Cr )
Adjusted EPS (Rs.) 6.72 8.29 6.34 8.12 6.10 4.69 7.67 -- --
Operating Margin (%) 18.00 16.98 15.84 20.46 17.20 14.58 18.94 -- --
Net Margin (%) 11.43 13.11 9.26 11.43 10.42 6.50 10.23 -- --
Quarterly Standalone
DEC-19 SEP-19 JUN-19 MAR-19 DEC-18 SEP-18 JUN-18 MAR-18
Income (R Cr )
Revenue 702.36 715.76 807.74 823.08 749.56 713.97 791.18 795.96
Other Income 26.52 64.71 21.97 23.97 19.34 58.42 20.10 23.61
Total Income 728.88 780.47 829.71 847.05 768.90 772.39 811.28 819.57
Total Expenditure 609.97 631.36 701.74 696.79 639.97 628.13 661.40 680.58
Operating Pro t 118.91 149.11 127.97 150.26 128.93 144.26 149.88 138.99
Interest 0.37 0.23 0.22 0.27 0.03 0.32 0.30 1.44
Exceptional Items -- -- -- -- -- -- -- --
PBDT 118.54 148.88 127.75 149.99 128.90 143.94 149.58 137.55
Depreciation 9.64 9.80 9.90 10.05 9.73 11.03 9.74 9.87
PBT 108.90 139.08 117.85 139.94 119.17 132.91 139.84 127.68
Tax 28.27 15.96 36.28 55.04 43.23 40.00 49.50 45.92
Pro t after Tax 80.63 123.12 81.57 84.90 75.94 92.91 90.34 81.76
Equity Capital 30.59 30.59 30.59 30.59 30.59 30.59 30.59 30.59
Ratios (R Cr )
Adjusted EPS (Rs.) 5.27 8.05 5.33 5.55 4.97 6.07 5.91 5.35
Operating Margin (%) 16.93 20.83 15.84 18.26 17.20 20.21 18.94 17.46
Net Margin (%) 11.06 15.78 9.83 10.02 9.88 12.03 11.14 9.98
Peers
Financial Peer Chart

Chart for: Kei Industries Vindhya Telelinks
Operating Revenue
Peer Comparison
MARKET NET NET
REVENUE ROE PRICE TO PRICE TO
COMPANY NAME CAP PROFIT MARGIN
(R CR.) (%) EARNINGS BOOK
(R CR.) (R CR.) (%)
Finolex Cables 3,931 3,049 353.97 11.25 -- 8.72 1.33
Kei Industries 3,128 4,888 253.11 5.16 -- 12.35 2.14
Precision Wires India 219 1,596 34.71 2.18 12.85 6.31 0.77
Universal Cables 392 1,608 74.27 4.57 17.50 5.28 0.87
Vindhya Telelinks 756 2,025 138.56 6.76 -- 2.62 0.34
Ownership
Shareholding Pattern
Shareholders more than 1%

COMPANY NAME CATEGORY MAR-20 DEC-19 SEP-19 JUN-19
ORBIT ELECTRICALS PRIVATE LIMITED Promoter 30.75 30.75 30.75 31.96
FINOLEX INDUSTRIES LIMITED Public 14.53 -- -- --
FRANKLIN INDIA EQUITY ADVANTAGE FUND Public 6.75 6.40 -- --
DSP SMALL CAP FUND Public 4.53 4.53 4.53 4.47
L AND T MUTUAL FUND TRUSTEE LTD-L

Public 3.40 3.55 2.87 3.30
AND T INFRASTRUCTURE FUND
Quali ed Institutional Buyer Public 2.47 -- -- --
HDFC LIFE INSURANCE COMPANY LIMITED Public 1.95 -- -- --
LGOF GLOBAL OPPORTUNITIES LIMITED Public 1.89 1.89 1.89 --
GOPICHAND PARMANAND HINDUJA Public 1.89 1.89 1.89 --
ARUNA KATARA Promoter 1.84 1.84 -- --
KOTAK EQUITY HYBRID Public 1.74 -- 1.40 1.46
COMPANY NAME CATEGORY MAR-20 DEC-19 SEP-19 JUN-19
ADITYA BIRLA SUN LIFE TRUSTEE PRIVATE

LIMITED A/C ADITYA BIRLA SUN LIFE Public 1.39 1.80 1.76 1.83
EQUITY HYBRID '95 FUND
Fund houses invested in the stock

FUND MAR-20 DEC-19 SEP-19 JUN-19 MAR-19
Franklin Templeton Mutual Fund 6.740 6.386 5.725 5.574 5.574
DSP Mutual Fund 4.520 4.520 4.520 4.292 3.975
L&T Mutual Fund 3.391 3.545 2.868 3.176 3.054
Kotak Mahindra Mutual Fund 1.745 1.720 1.400 1.400 1.438
Aditya Birla Sun Life Mutual Fund 1.391 1.794 1.774 1.757 1.739
ICICI Prudential Mutual Fund 0.398 0.071 0.071 0.048 0.048
Principal Mutual Fund 0.196 0.052 0.052 0.036 --
Tata Mutual Fund 0.152 0.838 0.958 0.852 1.223
ITI Mutual Fund 0.115 -- -- -- --
Union Mutual Fund 0.047 0.047 0.032 0.054 0.083
IDBI Mutual Fund 0.025 0.025 0.090 0.116 0.116
Nippon India Mutual Fund 0.014 -- -- 0.007 0.005
Motilal Oswal Mutual Fund 0.004 0.003 0.002 -- --
Mirae Asset Mutual Fund -- 0.659 0.659 0.789 0.789
Sahara Mutual Fund -- 0.003 0.003 0.003 0.003
HSBC Mutual Fund -- -- 0.332 0.437 0.283
Figures given above are % of equity capital
Insider Trades
TRANSACTION NO. OF PRICE VALUE
DATE PERSON BUY / SELL
TYPE SHARES (R) (RLAKHS)
17-Nov-2014 Pralhad P Chhabria Sell Gift 300 256.65 0.77
Inter-Se
27-Aug-2014 Aruna M Katara Buy 17,60,000 214.95 3,783.12
Transfer
Inter-Se
27-Aug-2014 Pralhad P Chhabria Sell 17,60,000 214.95 3,783.12
Transfer
26-Mar-2014 Orbit Electricals Pvt. Ltd. Buy Off Market 63,000 113.10 71.25
Inter-Se
20-Mar-2014 Pralhad P Chhabria Sell 17,60,400 99.00 1,742.80
Transfer

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6/8/2020 Value Research Stock Advisor - Finolex Cables

FINOLEX CABLES LTD. Latest

Engineering | Wires & cables

Set for a price surge

What do we like about the company?

Why should you invest now?

What is so good about the company?

How big can it become?

Opportunities in fast-moving electrical goods (three per cent of TTM revenues).

History and management

Valuation and outlook

Finolex Cables (Risk Score: 26/31)

Finolex Cables - Headwinds and Tailwinds

• It is able to use the surplus cash for attractive acquisitions opportunities.

Headwinds (When you should consider selling or cutting exposure)

Finolex loses the market's favour in the last four years

T he demonetisation of high-value currency in 2016 and implementation of GST and strict

The founders' story

How Finolex managed upheavals

(This article is linked to our coverage of Finolex Cables)

Opportunities in communication cables

(This article is linked to our coverage of Finolex Cables)

NSE Price Change | 1 Day P/E P/E Dividend Yield

BSE 08-Jun-2020 257.00 -3.04 287.00 265.05 40,122 250.65 - 287.00

About The Company Key Facts

Incorporated: 1967 Cash: R 816.72 Cr

Chairman: D K Chhabria Total Debt: R 0.55 Cr

Managing Director: -- Promoters' Ownership: 35.92%

Group: Finolex Liquidity: High

Listing: NSE: FINCABLES, BSE: 500144 52 Week Range: R 162.40 - 480.10

Headquarters: Pune, Maharashtra Face Value: R2.00

Please wait while we are fetching data...

YTD -30.64 -21.08 -13.46 2019 -18.37 -6.85 -11.27

1 2018 -35.65 -23.41 -21.27

1 Year -42.70 -34.97 -20.39 2015 -3.69 6.76 -8.60

3 Years -20.30 -14.13 -8.36 2014 219.61 69.24 --

5 Years 1.53 -5.18 1.78 2013 42.75 -11.23 --

Revenue (R Cr) EPS (R)

5 Please wait while we are fetching data...

Key Ratios and Highlights

GROWTH (%) QUARTERLY ANNUAL (TTM)

ANNUAL (TTM) QOQ YOY 1-YEAR 3-YEARS 5-YEARS

Revenue -1.87 -6.30 9.33 9.25 5.46

Operating Pro t 4.02 -1.95 4.29 12.44 14.09

Net Pro t -14.15 3.97 -3.94 11.41 10.63

EPS -19.02 10.13 -3.94 11.41 10.63

Book Value -- -- 11.20 15.20 17.20

KEY RATIOS (%) AVERAGE ANNUAL (TTM)

PARTICULARS 3-YEAR 5-YEARS TTM 20190301 20180301

Operating Margin 19.15 17.51 17.85 17.91 18.54

Net Margin 11.75 10.69 11.25 9.65 8.88

Return on Equity 16.88 16.96 -- 11.89 11.28

KEY RATIOS (%) AVERAGE ANNUAL (TTM)

PARTICULARS 3-YEAR 5-YEARS TTM 20190301 20180301

Return on Capital 23.95 23.11 -- 19.77 20.92

Debt to Equity (x) -- -- 0.00 0.00 0.00

Other Income 96.98 104.52 86.66 59.35 56.13 -- -- --

Total Income 3,145.92 3,182.31 2,901.78 2,504.19 2,416.45 -- -- --

Total Expenditure 2,601.59 2,631.00 2,379.80 2,048.91 2,001.98 -- -- --