Jindal Poly Films shares rise 10% in early trade; here's why

Shares of Jindal Poly Films Ltd rose 10% in early trade after the firm said it was buying a 100 percent stake in JPF Netherlands Investment BV. Jindal Poly Films stock climbed 10.04% to Rs 740 against the previous close of Rs 672.50 on BSE. It opened higher at Rs 700 on BSE. The stock was the top BSE gainer today.

A total of 0.65 lakh shares of the firm changed hands amounting to a turnover of Rs 4.76 crore on BSE. Market cap of the firm rose to Rs 3193.4 crore on BSE. At 11:10 am, the stock was trading 8.45% higher at Rs 729.30 on BSE. It opened 4.09% higher at Rs 700 today.

Jindal Poly Films stock hit a 52-week high of Rs 1164.05 on August 3, 2022 and a 52-week low of Rs 485 on March 28, 2023.

In terms of technicals, the relative strength index (RSI) of Jindal Poly Films stands at 73.9, signaling it's trading in the overbought zone. The stock has a beta of 1.2, indicating very high volatility in a year. Shares of Jindal Poly Films are trading higher than the 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.

The company said it was buying a 100 percent stake in JPF Netherlands Investment BV, a Netherlands-based entity, which is engaged in the business of packaging films business through its three operational wholly owned subsidiaries based out of France, Italy, and the United Kingdom.

"These operational entities are into the business of manufacturing of specialty, nylon, coated and metalized films and laminates. The products are mainly used as flexible packaging in foods, pharma, and luxury industry," it added.

Jindal Poly Films reported a 57.35 % fall in sales to Rs 734 crore in the March 2023 quarter against Rs 1720 crore in the March 2022 quarter. It posted a loss of Rs 385 crore in Q4 against Rs 492.04 crore in the March 2022 quarter. EBITDA declined 97.44% to Rs 11.57 crore in Q4 against Rs 452.45 crore in the March quarter of 2022.

On an annual basis, net profit fell 73.34% to Rs 318.93 crore for the fiscal ended March 2023 against Rs 1196.24 crore for the fiscal ended March 2022. Sales slipped 21.27% to Rs 4627 crore in the March 2023 fiscal against Rs 5877 crore for the fiscal ended March 2022.

Keywords:

Also read: Tata Communications shares upbeat outlook; stock price targets suggest most positives priced in

Also read: Paytm shares extend gains, jump 8% today; here's what brokerages say