This smallcap polyester manufacturing company zooms on a bleeding day!

Amid a steep fall in broad market indices, this smallcap stock gained upward momentum with a 20 per cent movement for the day.

Polyester films manufacturing company, Garware Hi-Tech Films has rallied more than 20 per cent in today’s trading session. It opened at Rs 635 and touched a day’s high of Rs 784. The stock has been in a downtrend for a month with a fall of 27 per cent till yesterday.

It is the pioneer in polyester film manufacturing and the largest exporter in India. GPL's manufacturing facility in Aurangabad is vertically integrated starting with raw material manufacturing of polyester chips to the manufacturing of polyester films with 5 independent manufacturing lines making a range of films.

GPL has two business segments:

1) Industrial Product Division (IPD) which contributes to 58 per cent of sales. The biggest contributor under this segment is Polyester Shrink Films as GPL is the leader in India.

2) Consumer Product Division (CPD) which contributes to 38 per cent of sales. This is the value-added segment wherein the company sells niche products like Automotive Sun control Films and Paint Protection Films. GPL exports 100 per cent of automotive films and has the 2nd largest capacity globally and ranks 3rd in US and European Markets. Also, they are the only manufacturer of Paint Protection Film in India.

In Q3FY22, revenue grew 18 per cent YoY to Rs 334 crore, however, operating profit declined 7 per cent with a steep contraction of 600 bps in the profit margin.

At 12.30 PM, Share was trading at Rs 765.5, up by 12.5 per cent