FINPIPE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.6

📊 Financial Snapshot

PAT (₹165 Cr) vs Prev Qtr (₹94 Cr): Strong jump, but -0.19% quarterly variation shows signs of volatility or one-offs.

ROCE (10.6%) & ROE (8.19%): Below ideal — indicates average capital deployment efficiency.

EPS (₹12.9): Modest relative to current valuation.

Debt-to-Equity (0.04): Near debt-free — adds resilience and flexibility.

Dividend Yield (1.19%): Slightly above FINCABLES — adds long-term income potential.

💰 Valuation Overview

Metric Value Interpretation

P/E Ratio 27.1 Slightly above industry average (26.4) — mildly expensive

P/B Ratio ~2.13 Reasonable valuation buffer

PEG Ratio -1.92 Negative due to flat/slowing growth — valuation caution

Intrinsic Value — Estimated near ₹190–₹200 — slightly below current price

📉 PEG and FII/DII reduction imply caution; stock is priced for perfection despite modest growth indicators.

🧵 Business Model & Strategic Position

Sector: Plastic piping systems — used in water distribution, agriculture, construction, and industrial applications.

Moats

Wide distribution network and diverse product portfolio.

Focus on branding and quality has positioned it well in Tier 1 & Tier 2 markets.

Risks

Raw material cost fluctuations (PVC, resins).

Weakening institutional investor sentiment could pressurize valuations.

📈 Technical Indicators & Entry Strategy

Current Price: ₹209

DMA 50 / 200: ₹208 / ₹218 — hovering below long-term average

RSI (49.3): Neutral zone — no clear signal yet

MACD (-0.96): Mild bearish momentum

Volume Dip: Below 1-week average — less conviction in price action

🛒 Suggested Entry Zone: ₹185–₹195 Wait for RSI drop near 40 & MACD to flip before buying. The price is mildly above intrinsic value and lacks upward catalyst.

🧭 Long-Term Holding Guidance

FINPIPE sits in a structurally sound industry tied to India's infra and housing growth. However, current valuation and financial ratios call for tempering expectations

Hold only if confident in sector rebound and input cost stabilization.

Revisit position if ROE/ROCE trends don't improve next few quarters.

Track FII/DII sentiments for early cues.

Looking to contrast it with Supreme Industries or Prince Pipes for stronger growth metrics and valuation comfort? I can help you run a comparative matrix too. Let’s sharpen the edge on your portfolio strategy. 💼📈

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