Polyplex Corporation Limited opened its trading hour today at Rs 1,128.95 and is currently trading at a price of Rs 1,144. The stock hit its 52-week low figures yesterday at Rs 1,101. The scrip is up approximately 2 percent as compared to the previous closing price of Rs 1,122. The stock is around 60 percent down from its high figures of Rs 2,870.20.
The company possesses seventh-largest capacity of polyester (PET) film with a global presence and includes supply to about 2650+ customers in 75 countries across Europe, the Americas, the Indian subcontinent, and the Middle East.
The polyester capabilities include both thin and thick PET films along with a wide range of thickness and surface properties covering a spectrum of applications. Moreover, some value-added products are offered by the company such as Integrated downstream capabilities of Metallizing, Holography, Silicone Coating, etc.
Having a quick glance at the financials, the revenues and net profits of the Polyplex have gone for a toss in the recent quarter. Revenues moved down from Rs 2,089 crores in Q2 to Rs 1,863 crores in Q3. Apart from the above metric, the net profits shed from Rs 200 crores in Q2 to Rs 84 crores in Q3.
The company, though fundamentally strong, got hit by some global factors such as the inflationary pressure and the same has caused the company to procure raw materials at increasing costs thereby affecting its profit margins.
Despite the downtrend mentioned above, some of the core aspects including improving profitability ratios, decent liquidity scenarios, and monetary capabilities led the company to combat its interest payments.
The profitability ratios such as the ROE and ROCE have shown improvement on a YoY basis with ROE moving from 28.35 percent in FY20-21 to 30.3 percent in FY1-22. ROCE figures reported an increase from 26.45 percent in FY20-21 to 29.08 percent in FY21-22.
During FY21-22, the company had a current ratio of 2.53 which equips the company to handle short-term liabilities. The interest coverage ratio improved from 56.67 times in FY20-21 to 70.49 times in FY21-22.
The company is proven to have a good dividend-paying history with decent dividend yield numbers.
Written by Amit Madnani
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