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IDBI Capital Report
Finolex Industries Ltd.'s Q4 FY24 result was in-line with our estimate on net sales front, while margins were beat to our forecast. The company reported healthy volume growth in Q4, which off-set decline in blended realisation.
The management expects the agro segment demand to be in higher single digit and high double digit in non-agro segment. Net sales was up by 8.3% YoY to Rs 12.3 billion, while Ebitda came in at Rs 2 billion, lower by 3.9% YoY.
Finolex Industries reported adjusted net profit of Rs 1.6 billion, marginally down by 1% over Q4 FY23. The company's focus on increasing share on non-agri products to 50% by FY27E bodes well for overall earnings growth in long term.
We have increased our net sales/profit afer tax estimates by 2.8%/0.8% and 18%/13% over FY25E/FY26E respectively.
Maintain Hold with a target price of Rs 282 (earlier Rs 219) assigning 25 times PER on FY26E.
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