- The stock was up 3.93% in the last trading session on 25 Feb 2022
- The company plans to close its only biax plant located at Barjora, West Bengal by FY22. It gets ~24% of its revenue from this plant.
- In the December quarter, it reported sales of ₹111.25 crores, up 9.11% YoY, as per standalone results.
On February 26, 2021, the shares were trading at ₹55 per share level and currently they are trading at ₹957 per share level, giving multi-bagger returns of more than 1550%.
Source – Trade Brains Portal
Xpro India is a diversified company in the polymer processing industry. It forms an integral part of the Siddharth Birla Group and operates in multiple locations. It manufactures coextruded plastic films, thermoformed liners and speciality films.
The company has engaged with Deloitte Touche Tohmatsu India LLP to improve operational efficiency improvements and drive sustainable cost reductions.
Its Biax division that makes film for packaging food, electronics, adhesive tapes and print lamination contributes ~24% to its revenues. The company plans to close its only biax plant located at Barjora, West Bengal by FY22. It has also closed various unviable units in the past. This is an important factor to consider before making any investment decision.
Other than this it has two manufacturing facilities in Uttar Pradesh for its Coex division.
In the December quarter of 2021, it reported sales of ₹111.25 crores, up 9.11% YoY, as per standalone results. Its quarterly net profit went up from 6.14 crores in December 2020 to 11.62 crores in December 2021, up 89.23%.
On the bright side, its PE ratio is lower than the industry average, and it has a good current ratio of 1.07. Its promoter’s holding has remained stable at 50.02% for the last 4 quarters.
However, its average ROE for the last three years is just 4.36%. It has a high debt-equity ratio of 1.48 and is known to borrow unsecured loans from its promoters for immediate requirements. In fact, it has a quick ratio lower than 1 indicating lower solvency in the short term. Though its revenue and profits have increased this year, its growth has been weak for the last three years.
In FY21, it voluntarily withdrew the application made to its lenders for availing One Time Restructuring under Policy on Resolution Framework for COVID-19 Related Stress due to GCEL (Guaranteed Emergency Credit Line) loan in Q4FY21 of ~23 crores and improvement in financial performance.
Source – Trade Brains Portal
Source – Trade Brains Portal
