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Finolex Cables

Discussion in 'Investment Analysis' started by raphelabhilash, Aug 16, 2017.

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  1. raphelabhilash

    raphelabhilash Member

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    Hi Shabbir Bhai

    Finolex Cables has shown consistent growth in Profit and has lowered debt. Can we consider this for investment ? Your views please.
     
    raphelabhilash, Aug 16, 2017
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  2. shabbir

    shabbir Administrator Staff Member

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    Financially it has everything right in its place to consider for investment. The debt is gone, OPM is quite in double digit and expanding for last 5 years along with good product mix and good market share.

    The only issue that I see is promoter holding is only 35% and this isn't comforting for a company with only 8k Crore market cap. Check here.
     
    shabbir, Aug 17, 2017
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  3. raphelabhilash

    raphelabhilash Member

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    Thank You for the detailed response.
     
    raphelabhilash, Aug 17, 2017
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  4. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Aug 18, 2017
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  5. akashgupt81

    akashgupt81 Active Member

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    I did not understand how correlate promoter holding with market cap..can you please elaborate

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    akashgupt81, Aug 18, 2017
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  6. shabbir

    shabbir Administrator Staff Member

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    I believe that small companies should have larger promoter holdings because when the company is small and offer too much from their share, it isn't good and they can't raise capital as they grow in size at later and may need to be taking higher than normal debts.
     
    shabbir, Aug 18, 2017
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  7. akashgupt81

    akashgupt81 Active Member

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    What would be the market capital limit of for small, medium and large cap

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    akashgupt81, Aug 18, 2017
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  8. shabbir

    shabbir Administrator Staff Member

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    There isn't any market cap limit as such but higher promoter holding is always prefer. Any company with promoter holding less than 50% isn't comforting for me and for under 10kCr I tend to avoid it.
     
    shabbir, Aug 18, 2017
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  9. nirajshah

    nirajshah Champion

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    This is awesome way of looking at it.

    Sent from my Micromax Q385 using DIY Technical Analysis mobile app
     
    nirajshah, Aug 18, 2017
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  10. Suresh_Sinha

    Suresh_Sinha Active Member

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    All I can say is innovative
     
    Suresh_Sinha, Aug 22, 2017
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