Stock Fundamentals

52 week blockbuster: JINDAL POLYFILMS

Adarsh Gopalakrishnan | Updated on January 24, 2011 Published on January 24, 2011

Stellar quarterly results due to rising realisations for plastic packaging material producer Jindal Polyfilms has resulted in the stock’s index-thrashing returns of 157 per cent over the last one year.

The 3rd quarter of 2010-2011 saw the company’s net sales grow by 88.4 per cent to Rs.729 crore while net profits were up six-fold to 221 crore. The company also enjoyed stellar operating profit margins of 45 per cent during the recent quarter ended December 2010. Strong growth in emerging segments such as processed foods and strong growth in traditional FMCG and pharmaceutical segments have aided the company’s growth over the last three quarters.

The company’s newfound pricing power is derived from the rising crude oil prices which are up 22 per cent since August 2010. Crude oil is one of the company’s major raw material inputs and the company has been able pass through raw material price hikes to end users.

Jindal Polyfilms is among India’s large producers of petrochemicals based packaging material and has consumers across various segments including FMCG, pharmaceutical among others. The company is also in the process of adding substantial production capacity across product lines over the next three years.

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