FINPIPE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | FINPIPE | Market Cap | 10,724 Cr. | Current Price | 173 ₹ | High / Low | 238 ₹ |
| Stock P/E | 22.5 | Book Value | 93.3 ₹ | Dividend Yield | 1.16 % | ROCE | 8.77 % |
| ROE | 6.76 % | Face Value | 2.00 ₹ | DMA 50 | 173 ₹ | DMA 200 | 186 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | 0.59 % | PAT Qtr | 110 Cr. | PAT Prev Qtr | 119 Cr. |
| RSI | 51.0 | MACD | 0.91 | Volume | 2,62,597 | Avg Vol 1Wk | 2,96,656 |
| Low price | 147 ₹ | High price | 238 ₹ | PEG Ratio | -1.13 | Debt to equity | 0.00 |
| 52w Index | 28.1 % | Qtr Profit Var | 55.0 % | EPS | 7.68 ₹ | Industry PE | 22.4 |
Financials & Valuation:
FINPIPE shows moderate fundamentals. ROCE (8.77%) and ROE (6.76%) reflect weak efficiency in capital utilization. EPS of 7.68 ₹ supports profitability, though quarterly PAT declined to 110 Cr. from 119 Cr., showing earnings pressure. Debt-to-equity is 0.00, highlighting a debt-free balance sheet.
Valuation Indicators:
P/E ratio of 22.5 is aligned with the industry average (22.4), suggesting fair valuation. Book Value of 93.3 ₹ compared to current price of 173 ₹ shows moderate premium pricing. PEG ratio of -1.13 indicates inefficiency in growth valuation. Dividend yield of 1.16% provides modest income support.
Business Model & Health:
FINPIPE, a player in plastic piping and infrastructure solutions, benefits from construction and housing demand. Debt-free status and institutional confidence (FII -0.01%, DII +0.59%) reinforce stability, though profitability metrics remain weak.
Entry Zone & Holding Guidance:
Technically, support lies around 168–175 ₹, with resistance near 185–190 ₹. Entry near support levels offers favorable risk-reward. Long-term holding is cautious unless ROE and ROCE improve, though debt-free balance sheet provides resilience.
Positive
- Debt-free balance sheet (0.00 debt-to-equity).
- EPS of 7.68 ₹ supports profitability.
- DII holdings increased (+0.59%).
- Fair valuation with P/E aligned to industry.
Limitation
- Weak ROCE (8.77%) and ROE (6.76%).
- PEG ratio (-1.13) indicates poor growth valuation.
- Decline in quarterly PAT (110 Cr. vs 119 Cr.).
- RSI (51.0) and MACD (0.91) show neutral momentum.
Company Negative News
- Decline in quarterly PAT.
- Weak efficiency metrics compared to peers.
- Slight reduction in FII holdings (-0.01%).
Company Positive News
- DII holdings increased, reflecting domestic support.
- Debt-free balance sheet enhances financial stability.
- EPS remains positive despite earnings pressure.
Industry
- Plastic piping and infrastructure sector benefits from construction and housing growth.
- Industry PE (22.4) aligns closely with FINPIPE, supporting fair valuation.
- Long-term demand supported by urbanization and infrastructure expansion.
Conclusion
FINPIPE is moderately strong with a debt-free balance sheet and fair valuation, but weak efficiency metrics and declining PAT limit upside. Entry near 168–175 ₹ offers a favorable setup for swing trades. Long-term investors should hold cautiously, monitoring profitability improvements.
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