Hold Finolex Cables, target Rs 755: Sharekhan
ETMarkets.com|
Updated: Feb 22, 2018, 07.55 AM IST
Sharekhan has a hold call on Finolex Cables with a target price of Rs 755.
The current market price of Finolex Cables is Rs 701.15.
Time period given by the brokerage firm is a year when Finolex Cables price can reach defined target.
"FCL reported broadly in line performance during Q3FY2018. We have marginally tweaked our earnings estimates factoring the impact of GST rate reduction and rise in commodity prices. We have also factored in the capex of Rs 50 crores for manufacturing and marketing PVC Electrical Conduits and Fitting which is expected to come up by end of 2018. FCL is expected to continue to generate healthy free cash flows over time, despite the capex. We continue to retain our Hold rating due to healthy return ratios, leaner balance sheet and healthy cash flows in future but revise PT to Rs 755," Sharekhan said in a report.
The current market price of Finolex Cables is Rs 701.15.
Time period given by the brokerage firm is a year when Finolex Cables price can reach defined target.
"FCL reported broadly in line performance during Q3FY2018. We have marginally tweaked our earnings estimates factoring the impact of GST rate reduction and rise in commodity prices. We have also factored in the capex of Rs 50 crores for manufacturing and marketing PVC Electrical Conduits and Fitting which is expected to come up by end of 2018. FCL is expected to continue to generate healthy free cash flows over time, despite the capex. We continue to retain our Hold rating due to healthy return ratios, leaner balance sheet and healthy cash flows in future but revise PT to Rs 755," Sharekhan said in a report.
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