stockmarkeguide
09-07-2008, 07:16 AM
India’s largest producer of Polyester (PET) and Polypropylene (BOPP) films, Jindal Poly Films, will discuss buyback plans on July 14th board meeting. Shares rose by 11.87% on Monday to end at 214.35. Jindal Poly Films touched intra-day high of 229 after hearing buyback news. Promoters want to hike their stake from the current 55.2% to undisclosed stake. Future price movement will depend on amount of stake and price at which promoters will buyback them.
Company has sound fundamentals but bear market kept the stock price at low valuations even after announcing 100% rise in net profits in the last quarter. Rise in crude oil price may have some effect on profits in the coming quarters. Company was world’s largest single location (PET and BOPP) plant at Nasik. Company laid out aggressive expansion plans to become world largest player in Polypropylene films.
Promoters: B.C. Jindal Group.
Jindal Poly Films stake report:
Promoters: 55.2%
FIIs: 16.99%
Institutions: 12.89%
Public: 10.46%
Other Corporate: 4.45%
Jindal Poly Films stock price analysis:
P/E: 4.9
EPS: 43.3
Book value: 327.8
1 year high-low: 349-150.
1 year target for Jindal Poly Films:
Bear market target: 260 (EPS of 52 and P/E of 5).
Bull market target: 380 (EPS of 54 and P/E of 7).
Verdict: It is a fundamentally sound company with low valuations and high book value. Buyback plans augur well for this small cap company. This packaging firm recorded 100% increase in net profit in FY2008 over FY07 (Rs 134 crore Vs Rs 65 crore). Company is improving profit margins for the last 4 years. Crude oil end products are raw materials for this industry. So rising crude oil prices remain a concern.
Note: It is difficult to predict about stock future in short term unless we know about amount of buyback stake and price of buyback.
Author . Dr Krishna
Company has sound fundamentals but bear market kept the stock price at low valuations even after announcing 100% rise in net profits in the last quarter. Rise in crude oil price may have some effect on profits in the coming quarters. Company was world’s largest single location (PET and BOPP) plant at Nasik. Company laid out aggressive expansion plans to become world largest player in Polypropylene films.
Promoters: B.C. Jindal Group.
Jindal Poly Films stake report:
Promoters: 55.2%
FIIs: 16.99%
Institutions: 12.89%
Public: 10.46%
Other Corporate: 4.45%
Jindal Poly Films stock price analysis:
P/E: 4.9
EPS: 43.3
Book value: 327.8
1 year high-low: 349-150.
1 year target for Jindal Poly Films:
Bear market target: 260 (EPS of 52 and P/E of 5).
Bull market target: 380 (EPS of 54 and P/E of 7).
Verdict: It is a fundamentally sound company with low valuations and high book value. Buyback plans augur well for this small cap company. This packaging firm recorded 100% increase in net profit in FY2008 over FY07 (Rs 134 crore Vs Rs 65 crore). Company is improving profit margins for the last 4 years. Crude oil end products are raw materials for this industry. So rising crude oil prices remain a concern.
Note: It is difficult to predict about stock future in short term unless we know about amount of buyback stake and price of buyback.
Author . Dr Krishna