JINDALPOLY

Buy Jindal Poly Films; target of Rs 216

Jindal Poly has given an upside breakout after consolidating in rounding bottom formation which resembles bullish structure. Also, the stock closed above its 100-DMA for the third time since third week of February 2012. On the oscillator front, RSI is suggesting more upside from the current levels. We advise buying the stock above Rs 202 with stop loss of Rs 195 for an immediate target of Rs 216. (Duration 4 days).  

Buy Jindal Poly Films; target of Rs 338

Jindal Poly Films (JPFL) is India’s leading producer of flexible packaging films. Jindal Poly Films Ltd is a part of Rs 30 Billion B C Jindal Group, a 50-Year Old Industrial Group Offering a Wide Range of Products. The Company operates the world’s largest single location facility for flexible packaging films at Nashik, Maharashtra and employs modern technology to produce high quality products. Haldia Synthetic Rubber Limited was incorporated on 21st February, 2011, as a company's wholly owned subsidiary. During the quarter, the company has reported revenue increased to Rs 6972.70 million for the quarter ended. Net Sales and PAT of the company are expected to grow at a CAGR of 30% and 59% over 2010 to 2013E respectively.

During the quarter, the company disclosed a standalone profit of Rs 1063.20 million as against of Rs 463.50 million for the quarter ended March 31, 2010. Net sales are increased by 61% to Rs 6972.70 million from Rs 4318.50 million in the same quarter previous year. In the same period, standalone operating profit of the company was at Rs 1924.40 million, a rise of 92% over the prior year period. Company EPS is stood at Rs 23.09 for the quarter ended March 2011.

At the current market price of Rs 298.35, the stock is trading at 1.93 x FY12E and 1.64 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs 154.35 and Rs 181.73 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 30% and 59% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 1.31 x for FY12E and 1.25 x for FY13E. Price to Book Value of the stock is expected to be at 0.57x and 0.43 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 338 for Medium to Long term investment.

Buy Jindal Poly Films; target of Rs 486

Jindal Poly Films (JPFL) is India’s leading producer of flexible packaging films. Jindal Poly Films Ltd is a part of Rs 30 Billion B C Jindal Group, A 50- Year Old Industrial Group Offering a Wide Range of Products. During the quarter the company has incorporated three wholly owned subsidiaries. Jindal Poly Subsidiary Awarded Coal Block in Mozambique. Jindal Metal and Mining Limited have entered into a joint venture agreement for prospecting, exploration and mining of coal. Net Sales and PAT of the company are expected to grow at a CAGR of 31% and 88% over 2009 to 2012E respectively.

Jindal Poly Films reported a rise of 88% sales in the standalone net sales for the quarter ended December 2010. During the quarter, the company disclosed a standalone profit of Rs 2210.90 million as against of Rs 348.50 million for the quarter ended December 31, 2009. Net sales are increased by 88% to Rs 7290.40 million from Rs 3869.80 million in the same quarter previous year. Total income of the company was at Rs 7440 million, a rise of 88% over the prior year period. Company EPS is stood at Rs 48.02 for the quarter ended December 2010.

At the current market price of Rs 422.85, the stock is trading at 2.66 x FY11E and 2.33 x FY12E respectively. Earning per share (EPS) of the company for the earnings for FY11E and FY12E is seen at Rs 159.09 and Rs 181.82 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 31% and 88% over 2009 to 2012E respectively. On the basis of EV/EBITDA, the stock trades at 1.87 x for FY11E and 1.83 x for FY12E. Price to Book Value of the stock is expected to be at 1.07 x and 0.73 x respectively for FY11E and FY12E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 486 for Medium to Long term investment.

Buy Jindal Poly Films

Polyfilm companies are in a very strong bull market and all of them like Cosmo Films, Uflex, Jindal Poly all of them have done well. Jindal Poly Films after a correction is now beginning to again break out and we could buy this with a stoploss of about Rs 615 and target here could be Rs 860.