This packaging stock is trending on October 19

The stock surged 3% on the day

On October 18, the market is trading in green. At 10:56 am, the S&P BSE Sensex is trading at 59325.61, up 0.6%, while NIFTY50 is trading at 17584.1, up 0.56%. Regarding sectoral performance, Financials and Capital Goods are outperforming, while IT is the top loser. Talking stock-specific action, Polyplex Corporation Ltd is among the top gainers.  

The shares of Polyplex Corporation Ltd surged 3% and are trading at Rs 1728.6, as of 10:58 am. The stock opened at Rs 1719.85 and made an intraday high and low of Rs 1789 and Rs 1685, respectively. 

Polyplex Corporation manufactures BOPP, Blown PP/PE, and CPP films which have applications in the flexible packaging industry as well as industrial applications such as release liners, tapes, and labels. The company has 34 years of experience in the field of plastic films. They have six manufacturing facilities in five countries, as well as numerous warehouses and liaison offices around the world.

Talking about FY22’s geographical revenue breakdown, 19% of the revenue came from the Indian market, 27% from other Asia markets, 27% from America, 22% from Europe, and the remaining 5% from the rest of the world.

Q1FY23 was the most successful quarter for the company, in terms of both revenue and net profit generated. Q1FY23 revenue was recorded at Rs 2033 crore, delivering a YoY improvement of 41.18%. The Q1FY23 net profit remained at Rs 311 crore, a YoY growth of 67.2%. The net profit margin improved from 12.9% in Q1FY21 to 15.3% in Q1FY23.

About the shareholding pattern, about 50.19% of the stake is owned by the promoters, 12.78% by FIIs, 3.63% by DIIs, and the rest 32.62% by the non-institutional investors.   

The company has a market capitalization of Rs 5582 crore and is trading at a PE multiple of 8.67x. The scrip has a 52-week high and low of Rs 2870 and Rs 1638, respectively.