The stock currently trades at 15.5x FY19e EPS of Rs 29.78 and 13.9x FY20e EPS of Rs 33.28. Restoration of price cuts in PVC pipes undertaken in FY18 coupled with recovery in volumes would help Finolex report earnings growth in low teen next fiscal on overall higher operating margin. Blend of higher capacity utilization and increased margins would doubtlessly spur return on capital - ROE estimated to rise to 16.1% from 12.6% in FY18. Yet risks of little steady demand of PVC pipes from vagaries of monsoons would have no sober effects. On balance, we retain our buy recommendation on the stock with revised target of Rs 599 (previous target: Rs 814) based on 18x FY20e earnings (four year average TTM P/E: 20.9).