Shares of this micro-cap company, which specializes in manufacturing transparent and metalized flexible packaging films, surged by 5 percent on Wednesday morning following a remarkable 1,125 percent QoQ increase in net profit and robust revenue growth in its latest quarterly results.
Share Price Movement
During Wednesday’s trading session, Nahar Polyfilms Ltd’s share price reached an intra-day high of Rs.255.80 per share, hitting a 5 percent upper circuit limit from the previous close of Rs.243.62 apiece.
Rationale for Rise
The recent surge in Nahar Polyfilms Ltd’s stock price reflects significant growth in both revenue and net profit for the quarter ending September 2024. The company reported a 23 percent increase in revenue, reaching Rs.169 crore compared to Rs.137 crore in Q2 FY24. Sequentially, revenue rose slightly by 1 percent from Rs.168 crore in Q1 FY25.
During the same period, Nahar Polyfilms posted a substantial 42 percent rise in net profit, amounting to Rs.17 crore in Q2 FY25, up from Rs.12 crore in Q2 FY24, and an extraordinary 1,125 percent increase from Rs.8 crore in Q1 FY25.
The company also maintains a strong financial position with a current ratio of 2.37 and a low debt-to-equity ratio of 0.13. Its earnings per share (EPS) stands at 8.72, with a price-to-earnings (P/E) ratio of 29.2, indicating financial stability and growth potential.
Manufacturing Capacity and Facility
Nahar Polyfilms Ltd operates a cutting-edge manufacturing facility in Mandideep, Madhya Pradesh, with an annual production capacity of 60,000 tons of BOPP films. The plant is equipped with two advanced BOPP lines from Brückner, including a high-performance 5-layer line for producing specialized films. Additionally, the facility has two metallizers for the production of both metalized and non-metalized films.
Shareholding Pattern
As of September 2024, the shareholding pattern of Nahar Polyfilms shows that promoters hold 71.88 percent stake, while Foreign Institutional Investors hold 0.03 percent. Domestic Institutional Investors and Retail Investors hold 0.01 percent and 28.08 percent, respectively
Company Profile
Nahar Poly Films Limited is an Indian company involved in the production of biaxially oriented polypropylene (BOPP) films. These BOPP films are mainly used in the flexible packaging industry and are distributed in both domestic and international markets.
Written by – Siddesh S Raskar
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