Finolex industries Ltd is a strong player in plastic pipes and tubes related sector. In the recent past this company has given strong performance, therefore the stock of Finolex industries have also performed good. It has given 110% return in 5 years period and 33% return in 1 year. But it has performed negatively in last six months. The worrying sign for the company is that its revenue and operating revenue are in negative. Due to this some mutual funds also reduced their shareholding in this company which resulted in the decrease in its price.
Overall Finolex is a strong company, and it is in business of pipes making from last 42 years. Most of the brokerage houses and experts have buy or hold opinion on this stock. This stock is categorized as balanced stock. The quality of this stock is very good, but companies' performance is not at its best at this level. In comparison to its peers like Astral pipes and Tega industries, Finolex stock has underperformed. The good thing about this stock is strong holding of the promoters.
Finolex industries is trying to double its optic fiber capacity. Over the 5 years, Finolex industries stock is moving up with forming lows and highs. At present also this stock looks positive as per chart and it looks heading towards 250 mark. But we can expect much bigger push in stock till company improves its performance.
Present Price- 225.50
Action- Buy for short term
Future Potential- 10% increase possible if can take risk
Risk Level- medium
Future potential – 250 - 269 (2 to 4 month time frame)
Stop Loss – 210
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