A market leader is a company that has the largest market share in a given industry. It is described based on the highest profitability margin, sales growth, and revenue as well.
Here is a market leader small stock with a market dominance of 25%.
Finolex Industries Ltd is India’s most renowned and exclusive manufacturer of backward integrated PVC Pipes and Fittings. The company is a leading manufacturer of PVC Resin in India. The company primarily serves agricultural clients.
Finolex Industries is a market leader in agri-pipe and has a large presence in rural India, with a 25% market share in agri-plastic pipes. Finolex Industries’ earnings are composed of 69% pipe and fittings and 31% PVC resins.
It is a Small-cap company with a market capitalization of Rs 10,868 crore. The company’s shares were trading at Rs 175 apiece on July 4.
Based on backward integration company has continuously reduced external sales of PVC resin and increased its captive consumption, which benefited in terms of cost advantage, assured better quality, and reduced logistics costs.
In FY22-23, Company reached the highest-ever volume growth in the agri and pipes fitting segment of 3,03,000 Metric tons, and the company excepting 10% to 15% in both segments in the coming fiscal year.
The business anticipates a 7.7% revenue CAGR over FY23-25, with pipe and fittings sales increasing at a 7.2% CAGR, a 13.3% CAGR in the PVC division, and a 25.6% PAT CAGR over FY23-25.
The company is expanding its offering from agriculture to plumbing pipe and fitting. Plumbing now accounts for 35-37% of Pipes segment sales volumes and 40% of Pipes segment revenues, with volume forecast to climb to 45%.
Total operating income was Rs 4,397.05 crore in FY23, a 5.39% reduction from Rs 4,647.32 crore in FY22. Pipes and Fitting’s volume climbed 27.92% in FY23 to 3,03,026 MT, up from 2,36,895 MT in FY22. In FY23, profit after tax declined 77.54% to Rs 236.58 Cr from Rs 1,053.47 Cr in FY22.
Written by Omkar Chitnis
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