⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
FINPIPE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | FINPIPE | Market Cap | 10,863 Cr. | Current Price | 175 ₹ | High / Low | 238 ₹ |
| Stock P/E | 22.8 | Book Value | 93.3 ₹ | Dividend Yield | 1.14 % | ROCE | 8.77 % |
| ROE | 6.76 % | Face Value | 2.00 ₹ | DMA 50 | 176 ₹ | DMA 200 | 194 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.08 % | PAT Qtr | 110 Cr. | PAT Prev Qtr | 119 Cr. |
| RSI | 51.2 | MACD | -0.05 | Volume | 4,48,477 | Avg Vol 1Wk | 3,26,051 |
| Low price | 144 ₹ | High price | 238 ₹ | PEG Ratio | -1.14 | Debt to equity | 0.00 |
| 52w Index | 32.9 % | Qtr Profit Var | 55.0 % | EPS | 7.68 ₹ | Industry PE | 21.5 |
📊 Core Financials
- Revenue growth: PAT at 110 Cr vs 119 Cr in previous quarter, showing slight decline but YoY profit variation strong at +55 %.
- Profit margins: EPS at 7.68 ₹, moderate profitability.
- Debt ratios: Excellent, debt-to-equity at 0.00 indicates zero leverage.
- Cash flows: Supported by profitability and debt-free balance sheet.
- Return metrics: ROCE 8.77 %, ROE 6.76 % — relatively weak efficiency compared to peers.
💹 Valuation Indicators
- P/E ratio: 22.8, slightly above industry average (21.5), fairly valued.
- P/B ratio: Current Price / Book Value ≈ 1.9, reasonable relative to assets.
- PEG ratio: -1.14, not meaningful due to inconsistent growth expectations.
- Intrinsic value: Fair valuation, supported by debt-free status but limited by modest returns.
🏢 Business Model & Competitive Advantage
- Operates in plastic piping and infrastructure solutions sector.
- Strong brand presence in PVC pipes and fittings with wide distribution network.
- Competitive advantage through scale, product diversification, and debt-free balance sheet.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive near 150–165 ₹ levels, closer to 52-week low support.
- Long-term holding: Favorable for conservative investors due to debt-free structure, though efficiency metrics need improvement for strong returns.
Positive
- Debt-free balance sheet (Debt-to-equity 0.00).
- Dividend yield at 1.14 % provides steady income.
- Quarterly profit variation strong (+55 % YoY).
- EPS at 7.68 ₹ reflects consistent earnings.
Limitation
- ROE (6.76 %) and ROCE (8.77 %) are weak compared to industry leaders.
- PEG ratio (-1.14) indicates distorted valuation relative to growth.
- Stock trading below DMA 200, showing weak long-term momentum.
Company Negative News
- Quarterly PAT declined sequentially (110 Cr vs 119 Cr).
- FII holdings decreased (-0.06 %).
- Technical indicators neutral to weak: MACD negative, RSI at 51.2.
Company Positive News
- Strong YoY profit growth (+55 %).
- DII holdings increased (+0.08 %).
- Debt-free balance sheet ensures financial stability.
Industry
- Plastic piping and infrastructure sector supported by construction and housing demand.
- Industry PE at 21.5, close to FINPIPE’s P/E, suggesting fair valuation.
Conclusion
- FINPIPE demonstrates stable fundamentals with debt-free balance sheet and consistent profitability.
- Valuation is fair compared to industry peers, though efficiency metrics remain modest.
- Entry advisable near lower support levels; long-term holding recommended with cautious optimism, especially if ROE/ROCE improve.
I can also prepare a comparative HTML snapshot against peers like Astral and Supreme Industries to highlight FINPIPE’s relative valuation and strengths.