PVC pipe manufacturer, Finolex Industries, is worth looking at as it has announced phenomenal performance in Q1FY08. While net sales rose 33 per cent to Rs 314.8 crore, its net profits more than doubled to Rs 24.49 crore Moreover operating margins has also expanded by 219 basis points at 17.8 per cent.
Last month, there was an announcement that the company is close to inking a pact with Tishman Speyer India Ventures, a company engaged in real estate development for sale of its 78 acre land near Pune, where it houses one of its PVC pipe manufacturing facility and shift its production facility to its another facility of 1000 acre in Ratnagiri.
The value of the deal is worth Rs 300 crore. FIL is also adding 20,000 tonne of pipe capacity by setting up another greenfield facility to manufacture pipes at Urse, which will commence production by December.
The stock trades at P/E of 15.3 times its FY07 earnings and has underperformed the Sensex since December 2006.
