Jindal Poly Films rises over 18% after strong Q1, amid rising in packaging stocks

Volumes in the counter stood at 1.4 million on NSE, much more than the 30-day average of 110,000.

In an exchange filing, the company said it posted a consolidated profit of ₹169 crore in the first quarter compared to a loss of ₹19 crore in the fourth quarter of the last year. Revenue grew from ₹1,138 crore to ₹1,378 crore.

The growth was led by its key packaging films business, where revenue rose from ₹870 crore to ₹103 crore.

Part of the BC Jindal Group, Jindal Poly Films sells polyester and polypropylene films, which are used in consumer goods packaging, lamination, medical packaging and photographic films etc, besides having industrial applications. The company also makes cold rolled steel strips and galvanised sheets.

Today’s rally in Jindal Poly Films shares was accompanied by a rise in shares of other packaging companies as well, which also declared similarly strong results, with Uflex rising 20% and Polyplex Corp up 8.9%.

Jindal Poly Films shares have gained 34% over the past one year and 238% over the past five years, amid flattish revenue growth over the past five years and a fall in profit. As of FY24, the company had a debt-to-equity ratio of 1.04.

However, its recent growth trend has been encouraging, with first-quarter revenue climbing both year-on-year and quarter-on-quarter.

On a technical level, its shares appear to trade above short and long term moving averages on the daily chart, and appear bullish on RSI and MACD. They also exhibit bullish moving average crossovers. Technical indicators, however, do not necessarily mean that the stock will continue to do well and investors must conduct their own research.

Promoters in Jindal Poly Films own 75%, foreign portfolio investors hold 3% while the rest of the shareholding is in the hands of individual investors.