Finolex Industries: A Potential Long-Term Investment

Finolex Industries has recently formed a butterfly pattern in its stock chart and is currently positioned within a strong support zone around ₹200. The stock has experienced a significant decline of approximately 40%, making it potentially attractive for long-term investors.
Fundamental Analysis of Finolex Industries
Performance Overview: In the fiscal year 2024, Finolex Industries reported a 2.3% increase in revenue and an impressive 89% increase in net income compared to the previous year. The net profit margin also improved to 11% during this period.
Price-to-Earnings (P/E) Ratio: The current P/E ratio stands at 16.6, indicating reasonable valuation relative to earnings.
Debt Levels: The company maintains a low debt-to-equity ratio of 0.068, reflecting strong financial stability and minimal reliance on debt financing.
Return on Equity (ROE): Finolex achieved a solid ROE of 13.69%, showcasing efficient use of equity capital to generate profits.
Net Profit Margin: The net profit margin reached 18.98%, indicating effective cost management and profitability.
Market Capitalization: As of the latest data, Finolex Industries has a market cap of approximately ₹135 billion, which positions it well within the industry.
Yearly Performance Highlights
In the last fiscal year, the company demonstrated resilience with an increase in total income by 8.3% year-over-year in Q4 FY24, despite facing challenges such as raw material price fluctuations.
The company's earnings per share (EPS) saw a significant rise, increasing by nearly 89.6% year-over-year, reflecting robust growth in profitability.