Looks like management has waken up now. They are looking for revenue mix of 50:50 in pvc (agricultural) and cpvc (construction) segment. This would result in better margin visibility.
Key risk: CPVC segment have become hugely competitive. Barriers of entry are low and small players are entering the market.
Finolex management have been historically poor in marketing its cpvc products. So future lies in how they manage to create a brand awareness.
Current PE of 20 looks high due to poor margins (huge drop in cpvc prices). Margins may improve in future.
Nevertheless, Finolex is a cash generating machine – paying good dividends.
Any antithesis is welcome.
Note: Invested, 3% of my folio, since last 4 years
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