With a market capitalization of ₹ 4,514 crores, Polyplex corporation is a small-cap company that is engaged in the manufacturing of BOPP, Blown PP/PE and CPP films used in the flexible packaging industry and in industrial usages like release liners, tapes, labels and so on. The capacity of polyester (PET) film produced by the company is the seventh-largest in the world.
In a recent exchange filing, the company said that its board of directors in a meeting held on February 13, 2023, declared a second interim dividend (special) of ₹ 30 per share for the financial year 2022-23, subject to TDS/ withholding tax. The record date for this purpose is fixed as February 24, 2023.
The company has a good dividend yield of 2.85%. It has already paid an interim dividend of ₹ 20 per share (200% of the face value of ₹ 10) in November 2022.
On a consolidated basis, Polyplex Corporation’s net sales or revenue from operations reached ₹1863.34 crore in Q3FY23 (October to December 2022) compared to ₹1751.01 crore in Q3FY22 (October to December 2021), indicating a growth of 6.41% YoY. It posted a consolidated net profit of ₹ 38.67 crore in Q3FY23 compared to ₹175.46 crores in the year-ago quarter, representing a fall of 77.96% YoY.
Polyplex Corporation’s shares were trading at ₹ 1455.40 apiece at 11:37 AM on Wednesday. It has a return on equity of 17.86% and an ideal debt-to-equity ratio of 0.25. Its shares were trading at a price-to-earnings ratio of 8.57 which is lower than the industry P/E of 13.60, indicating that the stock might be undervalued as compared to its peers.
Written by Simran Bafna
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