HSBC Securities raises India's Finolex Industries to 'buy' on bullish outlook

Finolex Industries

17/05/2023 08:36

** Indian pipes maker Finolex Industries  FINX.NS  to see
strong margins in H1FY24, says HSBC Securities, upgrading co to
"buy" from "hold"
    ** Brokerage increases TP to 225 rupees from 155 rupees,
with an implied upside of 24.1% 
    ** Co to benefit from improved PVC (polyvinyl chloride)
margins, as recovery in Chinese real estate market will boost
demand, says brokerage
    ** We believe costs for co should remain low in H1FY24, on
use of low-cost stored feedstock - HSBC
    ** Rural recovery, drier monsoons due to possible El Nino
effect "likely to increase need of irrigation through pipes" -
HSBC
    ** Nine out of 14 analysts rate the stock "buy" or above, 4
suggest "hold" and 1 recommend "sell"; median TP 198 rupees -
Refinitiv 
    ** FINX largely unchanged so far this year 

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))