The shares of Polyplex Corporation hit a 52-week low of ₹ 1625.50 apiece on Monday. Its shares closed at ₹ 1638.00 apiece on the Bombay Stock Exchange (BSE). 90356 shares changed hands during the day.
According to the latest filings, ace investor Dolly Khanna holds 3,68,170 shares of the company. Her holdings in the company are worth ₹ 60.1 crores. Dolly Khanna recently reduced her stake in the company from 1.3% to 1.2%.
PolyPlex Corporation is engaged in manufacturing films used in the packaging industry and in industrial usages like release liners, tapes, labels and so on. The company has more than 33 years of experience in the industry.
Its shares reached an all-time high of ₹ 2870.00 apiece on April 11, 2022. Thereafter, its share price started to decline. Since then, it has lost 41.77%.
The company’s profit margin has been declining since the March quarter. In fact, it declined from 15.3% in Q1FY23 (March to June quarter) to 9.58% in Q2FY23 (June to September quarter).
Companies in the sector have been facing pressure in their operating profit margins, owing to high raw material prices. As far as Polyplex Corporation is concerned, raw materials costs account for about 67% of its total expenditure. This could be one of the reasons why the stock is under pressure.
Polyplex Corporation is a small-cap company with a market capitalization of ₹ 5,191 crores. It has a return on equity of 17.86% and an ideal debt-to-equity ratio of 0.25. Its shares are trading at a price-to-equity ratio (P/E) of 7.83, which is significantly lower than the industry P/E of 13.49, indicating that the stock might be undervalued as compared to its peers.
Written by Simran Bafna
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
