Investec has maintained a hold rating on Finolex Industries (FNXP), assigning a target price of ₹220, which is slightly below the current market price of ₹223.90. The brokerage acknowledged an operating beat in the company’s recent earnings but remains cautious on upside potential in the near term.
The management refrained from offering specific volume guidance but indicated that margins are expected to improve from current levels. This, according to Investec, could support steady operating leverage in the upcoming quarters.
Crucially, Finolex has joined peer Astral Ltd in citing regulatory tailwinds as a supportive factor, particularly around the anticipated implementation of anti-dumping duties (ADD) and quality control orders (QCO). Management sees these developments as “more likely than not,” which could provide a boost to the formal industry players by curbing lower-quality imports.
While Investec sees the regulatory backdrop turning favorable, it believes the current valuation already reflects much of the optimism, prompting it to maintain a neutral stance.
Disclaimer: This article is for informational purposes only and is based solely on brokerage reports and publicly available data. It does not constitute investment advice or a recommendation to buy or sell any securities. Readers are advised to consult a certified financial advisor before making any investment decisions.
