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Jindal Poly Films Ltd Stock Analysis

Small Cap
Evaluated by 1338 users | BSE: 500227 | NSE: JINDALPOLY |
Plastic Products
Jindal Poly Films (JPFL) is a part of Rs 30 billion B C Jindal group, a 50-year old industrial group offering a wide range of products. The group has promoted a number of companies over the years and is involved in diverse activities including manufacturing of polyester film, polypropylene...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Jindal Poly Films Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 33.01%9.38%2.05%7.93%9.67%9.76%4.61%6.12%1.33%18.92%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,7462,3642,2322,6312,7752,6442,5922,9513,5963,517
Y-o-Y Gr. Rt.--13.9%-5.6%17.9%5.5%-4.7%-2%13.8%21.9%-2.2%
Adjusted EPS (Rs.) 127.9642.832.9522.9737.2144.6918.0228.970.62114.44
Y-o-Y Gr. Rt.--66.5%-93.1%678.6%62%20.1%-59.7%60.8%-97.9%18358.1%
Book Value per Share (Rs.) 358.04399.93268.58299.4352.34394.28412414.45333.18411.49
Adjusted Net Profit 58918412.496.616319678.91272.7501
Net Op. Cash Flow (Rs. Cr.) 44229188.238082.6269301288455355
Debt to Cash Flow from Ops 1.081.796.591.296.652.83.53.422.353.94
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Jindal Poly Films Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 2.8%4.9%10.7%-2.2%
Adjusted EPS -1.2%25.2%85.2%18358.1%
Book Value per Share 1.63.2023.5
Share Price 9.7% 3.6% 6.3% 71%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 43.3610.940.878.0911.6311.974.477.010.1730.74
Operating Profit Margin (%) 34.8714.96.5311.0610.7213.528.6310.1412.0218.72
Net Profit Margin (%) 21.457.790.563.675.877.43.044.30.0814.25
Debt to Equity 0.290.30.510.390.360.440.580.540.730.78
Working Capital Days 8013016314611893100111102111
Cash Conversion Cycle 28444133232326313237
Entity Percentage Holding
Promoters 74.55%
Institutions 1.26%
Non-Institutions 24.19%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Jindal Poly Films Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Jindal Poly Films Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Jindal Poly Films Ltd's performance infers:

Jindal Poly Films Ltd earnings have grown by 25.2%, whereas share price has appreciated 3.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Jindal Poly Films Ltd share prices over the last 10 years. Here is what we found out:

Jindal Poly Films Ltd share price has appreciated -0.2% annually over the past ten years.

Jindal Poly Films (JPFL) is a part of Rs 30 billion B C Jindal group, a 50-year old industrial group offering a wide range of products. The group has promoted a number of companies over the years and is involved in diverse activities including manufacturing of polyester film, polypropylene film, steel pipes and photographic products.

JPFL is the largest manufacturer of BOPET and BOPP films in India. The company produces BOPET film, BOPP film, metalized BOPET film and BOPP film, coated

Jindal Poly Films (JPFL) is a part of Rs 30 billion B C Jindal group, a 50-year old industrial group offering a wide range of products. The group has promoted a number of companies over the years and is involved in diverse activities including manufacturing of polyester film, polypropylene film, steel pipes and photographic products.

JPFL is the largest manufacturer of BOPET and BOPP films in India. The company produces BOPET film, BOPP film, metalized BOPET film and BOPP film, coated BOPET and BOPP films, polyester chips (for captive consumption in the BOPET film)

From being only a polyester yarn producer in 1985, JPFL diversified in 1996 into BOPET film production. In 2003, JPFL commenced production of BOPP film and metallised film. JPFL commenced production of coated film products by July 2005. JPFL capabilities were strengthened by the acquisition in November 2003 of Rexor SAS, in France, which produces metallised and coated films as well as tear tape, stamping foil, security thread and other high-value products. JPFL plant at Nasik, Maharashtra is the world’s largest single location plant for the manufacture of BOPET and BOPP films.

The company is the world's 5th largest BOPET Film manufacturers in the world. It is in the league of top five producers of BOPP Films in the world after the expansion.

Rexor makes and sells a broad range of metallised and coated BOPET films for preserving food products and is a market leading producer of “tear tape” for easy opening of cheese portions and laminated films used in the packaging of luxury products such as cosmetics and perfumes. It is the leading independent producer of security threads for bank notes. The company also produces film for decoration, insulation, aeronautics and sun protection. It holds proprietary technologies for laser demetallisation of security threads and other bank note security applications and for slitting films into widths as short as 0.20 millimeters.

In 2012 Jindal Poly Films entered into an agreement with ExxonMobil Chemical (ExxonMobil) to purchase ExxonMobil's BOPP Global Film business.

Milestones:

• 1985 Commenced manufacturing of POY at Gulahoti, Bulandshahar, UP.

• 1992 Backward integration into manufacturing of polyester chips for captive consumption

• 1996 Diversified into manufacturing BOPET films at Nasik.

• 2000 Installed a new thick BOPET film manufacturing facility 

• 2003 Diversified into manufacturing BOPP and metallised films at Nasik. Acquired Rexor, France in November 2003 for Euro 8.5 million 

• 2005 Started second 8.7 meters width BOPET films line with a capacity of 25000 tonnes per annum. Started 5 Layer 8.2 meters width BOPP films line with a capacity of 32000 tonnes per annum.

• 2006 Started second 8.2 meters width BOPP films with a capacity of 45000 tonnes per annum.

• 2007 Started 3rd 8.2 meters width BOPP line with a capacity of 45000 tonnes per annum.

• 2009 Started two 8.7 mtrs width BOPP lines with a capacity of 45000 tpa each.
• 2010 Started 3rd 8.7 mtrs BOPET line with a capacity of 30000 tpa.
* Between 2003-2011 -----9 Metallizer have been installed with a total capacity of 53640 tpa.

Products:

1. PET Films

Polyester film commonly known as PET film is a versatile film, which has a vast range of applications. The film provides a strong barrier to moisture, odour and gases making it suitable for use in flexible packaging. Its high tensile strength, thermal and chemical stability makes it suitable for a multitude of applications in electric insulation, office supplies, graphic arts, magnetic media imaging, metallic yarn and industrial applications.

2. BOPP Films

Polypropylene film commonly known as BOPP is widely used for food packaging, textile bags, overwraps for cigarette and personal products, adhesive tapes and labels. BOPP film possesses dimensional stability, high tensile strength, good stiffness, high clarity, excellent printability and most importantly, heat sealability.

3. Metalized Films 

JPFL has four wide width metallizers with plasma treatment facilities for enhanced shelf life and barrier properties. Two more metallizers of 2850 mm width are being installed by Jan & March 2008.

4. Coated Films 

As a part of the forward integration of BOPP and PET Films, JPFL installed two coating lines for manufacturing of entire range of specialty coated films like PVdC, Acrylic, Low Temperature Seal and High Seal Integrity coatings.  

5. Poly Chips

Jindal Group stands for the highest Polyester films, polyester chips and resins production facilities, with plants located at Nasik to cater to captive consumption.

Expansion Plans:

• One 8.7 meters wide 25000 tonnes per annum capacity BOPET film by June 2009.

• Two 8.7 meters wide with a capacity of 60000 tonnes per annum BOPP films by 2009-10.

• Two expansion coating lines with a capacity of 9000 MT in mid 2009.

• Two more metalizer with a capacity of 20000 tonnes per annum in 2010.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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