Hidden Gems: Polyplex Corporation Ltd

Polyplex started 33 Year back , now globally known  name in its business. The Company’s diversified business portfolio includes polyethylene terephthalate (PET) films, cast polypropylene (CPP) films and biaxially oriented polypropylene (BOPP) films. Polyplex is one of the world’s largest thin PET film manufacturer.

 

Key Facts:

  • Company has manufacturing plants and distribution facilities in India, Thailand, Turkey and the US
  • Polyplex caters around 1600 customers across 70 countries.
  • PET Films has application in across the  Industries:
  • Packaging:Food packaging, film for flexible pouches, peel-able seals etc.
  • Industrial and specialties :Hot stamping foil, release films, photo resist films, metallic yarns, adhesive tapes, plastic cards etc.
  • Electrical :Motor wire and cable, transformer insulation films, capacitors etc.
  • Imaging: Microfilm, printing and prepress films, color proofing etc.
  • Magnetics: Videotape, audio cassette tape and advanced high-density computer storage media
  • Its top-10 customers contributed 28% of revenues in FY2016-17.
  • 65% of the Company’s revenues were from PET films (Thin and Thick) in FY2016-17
  • Company is reducing its debt consistently with current debt to equity ratio 0.27.
  • Company has consistent dividend paying record since 1993 with current dividend yield stand at  1.27%

 

Stock Outlook:

  • M-cap: INR 1768 cr
  • CMP: 550.75 INR (5th Jan 2018)
  • PE: 10.73
  • EPS:51.25INR
  • Book Value: 773 INR
  • Share capital :32.56 cr of FV 10.
  • Promoter Share holding :50.03 %
  • FII/FPI/DII Share holding :9.98 %

Future Growth:

  • Company is setting up of Extrusion Coating lines in Thailand, Silicone Coating lines in India and Thailand, Offline Coaters in Turkey and India and sheeting facility in India for the digital print media segment.
  • Investment into Holography machines in India will present further opportunities for growth.
  • In order to expand capacity and to upgrade technology, a new metallizer with an annual capacity of 6,000 MT has been ordered for Polyplex USA which expected to commissioned by March 2018.
  • In order to cater to growing demand, a second Blown PP line with an annual capacity of 4,200 MT has been ordered by Polyplex Thailand  which expected commissioned by June 2018
  • Company is expected to deliver good growth for upcoming years.

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.

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