Review

JINDAL POLY FILMS LTD

Ticker : 500227  
FV: Rs 10  
52-Week H/L: Rs 525.10/150

We had previously recommended Jindal Poly Films Ltd (JPFL) in volume no. 37, issue no. 04 (dated November 16, 2020), when the scrip was trading at Rs 494.50. It was recommended based on the increasing demand for the company’s products, which would positively affect its revenue growth. On the consolidated quarterly front, the company reported net sales of Rs 1,091.23 crore for Q2FY21, which is an increase of 29.21 per cent from its net sales of Rs 844.52 crore reported for Q2FY20. The operating profit rose significantly by 164.62 per cent to Rs 369.07 crore in Q2FY21 from Rs 139.47 crore posted in Q2FY20. The company gained a net profit of Rs 246.36 crore in Q2FY21, which is an increase of 52.72 per cent compared to the net profit of Rs 161.32 crore gained in Q2FY20. Recently, JPFL collaborated with DIC Corporation of Japan, in the area of CPP films to cater to Indian as well as other export markets. Anticipating growth in demand for functional CPP films, JPFL shows a strong growth trajectory. Hence, we recommend to HOLD.