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Finolex Industries Ltd

NSE: FINPIPE BSE: 500940

185.25

(0.07%)

Tue, 03 Mar 2026, 00:42 pm

Finolex Industries Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
  • Finolex Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Finolex Industries's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

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Pros

  • Finolex Industries's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Performance (ROE) is expected to be above the current IN Chemicals industry average.
  • Finolex Industries's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Finolex Industries is expected to increase but not above the 50% threshold in 2 years time.
  • Finolex Industries's earnings are expected to grow by 10% yearly, however this is not considered high growth (20% yearly).
  • Finolex Industries's earnings growth is positive but not above the India market average.
  • Finolex Industries's earnings are expected to increase but not above the low risk growth rate next year.
  • Finolex Industries's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Finolex Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Finolex Industries's performance (ROE) is expected over the next 3 years.
  • Finolex Industries's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Finolex Industries's revenue is expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Finolex Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Finolex Industries is profitable, therefore cash runway is not a concern.
  • Finolex Industries is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (31967%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 744.2x debt.
  • Finolex Industries's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (84.8% vs 0% today).
  • Finolex Industries earns more interest than it pays, coverage of interest payments is not a concern.
  • Finolex Industries's level of debt (0%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Finolex Industries board of directors is about average.
  • Sanjay's remuneration is about average for companies of similar size in India.
  • Sanjay's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

    misc

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    Pros

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      Cons

      • Finolex Industries has significant price volatility in the past 3 months.

      past

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      Pros

      • Finolex Industries has delivered over 20% year on year earnings growth in the past 5 years.
      • Finolex Industries used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
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      Cons

      • Finolex Industries's 1-year earnings growth is less than its 5-year average (5.4% vs 26.1%)
      • Finolex Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Finolex Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Finolex Industries's earnings growth has not exceeded the IN Chemicals industry average in the past year (5.4% vs 9.1%).

      value

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      Pros

      • FINPIPE outperformed the Market in India which returned -14.5% over the past year.
      • NSEI:FINPIPE is up 14.9% outperforming the Chemicals industry which returned 6.9% over the past month.
      • NSEI:FINPIPE is up 14.9% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Finolex Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Finolex Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Finolex Industries is overvalued based on assets compared to the IN Chemicals industry average.
      • Finolex Industries is poor value based on expected growth next year.
      • Finolex Industries is overvalued based on earnings compared to the IN Chemicals industry average.
      • Finolex Industries is overvalued based on earnings compared to the India market.
      • FINPIPE underperformed the Chemicals industry which returned 2.2% over the past year.

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