Polyplex (NSEI:POLYPLEX) - Share price, News & Analysis

POLYPLEX fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	2/6
Financial Health	6/6
Dividends	4/6

POLYPLEX Stock Overview

Polyplex Corporation Limited manufactures and sells polyester (PET) films primarily for flexible packaging in India and internationally.

Rewards

Trading at 39.8% below our estimate of its fair value

Earnings are forecast to grow 8.6% per year

Earnings have grown 22.8% per year over the past 5 years

Risk Analysis

Dividend of 4.65% is not well covered by earnings

Polyplex Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Polyplex
Historical stock prices
Current Share Price	₹2,233.35
52 Week High	₹2,870.20
52 Week Low	₹1,314.00
Beta	0.79
1 Month Change	-0.87%
3 Month Change	-1.55%
1 Year Change	68.45%
3 Year Change	332.44%
5 Year Change	421.20%
Change since IPO	11,795.34%

Recent News & Updates

May 06

I Ran A Stock Scan For Earnings Growth And Polyplex (NSE:POLYPLEX) Passed With Ease

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

	POLYPLEX	IN Chemicals	IN Market
7D	7.0%	2.7%	2.3%
1Y	68.5%	-1.5%	-0.9%

Return vs Industry: POLYPLEX exceeded the Indian Chemicals industry which returned -1.5% over the past year.

Return vs Market: POLYPLEX exceeded the Indian Market which returned -0.9% over the past year.

Price Volatility

Is POLYPLEX's price volatile compared to industry and market?
POLYPLEX volatility
POLYPLEX Average Weekly Movement	7.8%
Chemicals Industry Average Movement	6.7%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: POLYPLEX is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: POLYPLEX's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1984	2,430	Pranay Kothari	https://www.polyplex.com

Polyplex Corporation Limited manufactures and sells polyester (PET) films primarily for flexible packaging in India and internationally. The company offers Sarafil base films, including biaxially-oriented (BO) PET films for use in packaging, electrical, and industrial applications; BO polypropylene (PP) films for flexible packaging and other applications; cast PP films for flexible packaging and other applications; blown PP films used in pressure sensitive applications; sustainable films; holographic films; and transfer metalized papers. It also provides Saracote silicone coated PET/PP films, such as release liner-labels, release liner-specialty products, shingle roofing tapes, release film liners, and primer coated liners used in labels, tapes, roofing shingles, and peels and sticks underlayments.

Polyplex Fundamentals Summary

How do Polyplex's earnings and revenue compare to its market cap?
POLYPLEX fundamental statistics
Market Cap	₹70.16b
Earnings (TTM)	₹5.69b
Revenue (TTM)	₹66.24b

12.3x

P/E Ratio

1.1x

P/S Ratio

Is POLYPLEX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
POLYPLEX income statement (TTM)
Revenue	₹66.24b
Cost of Revenue	₹39.69b
Gross Profit	₹26.56b
Other Expenses	₹20.87b
Earnings	₹5.69b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	181.19
Gross Margin	40.09%
Net Profit Margin	8.59%
Debt/Equity Ratio	17.7%

How did POLYPLEX perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

38%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is POLYPLEX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for POLYPLEX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for POLYPLEX. This is calculated by dividing POLYPLEX's market cap by their current preferred multiple.
What is POLYPLEX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹70.16b

POLYPLEX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.3x
Enterprise Value/EBITDA	6.8x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does POLYPLEX's PE Ratio compare to its peers?

POLYPLEX PE Ratio vs Peers

The above table shows the PE ratio for POLYPLEX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8.3x

Forward PE

Price-To-Earnings vs Peers: POLYPLEX is expensive based on its Price-To-Earnings Ratio (12.3x) compared to the peer average (8.3x).

Price to Earnings Ratio vs Industry

How does POLYPLEX's PE Ratio compare vs other companies in the Indian Chemicals Industry?

Price-To-Earnings vs Industry: POLYPLEX is good value based on its Price-To-Earnings Ratio (12.3x) compared to the Indian Chemicals industry average (16.9x)

Price to Earnings Ratio vs Fair Ratio

What is POLYPLEX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

POLYPLEX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.3x
Fair PE Ratio	17.3x

Price-To-Earnings vs Fair Ratio: POLYPLEX is good value based on its Price-To-Earnings Ratio (12.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.3x).

Share Price vs Fair Value

What is the Fair Price of POLYPLEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: POLYPLEX (₹2233.35) is trading below our estimate of fair value (₹3710.12)

Significantly Below Fair Value: POLYPLEX is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: POLYPLEX is poor value based on its PEG Ratio (1.4x)

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Future Growth

How is Polyplex forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: POLYPLEX's forecast earnings growth (8.6% per year) is above the savings rate (6.7%).

Earnings vs Market: POLYPLEX's earnings (8.6% per year) are forecast to grow slower than the Indian market (17.4% per year).

High Growth Earnings: POLYPLEX's earnings are forecast to grow, but not significantly.

Revenue vs Market: POLYPLEX's revenue (7.6% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: POLYPLEX's revenue (7.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: POLYPLEX's Return on Equity is forecast to be low in 3 years time (17.3%).

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Past Performance

How has Polyplex performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: POLYPLEX has high quality earnings.

Growing Profit Margin: POLYPLEX's current net profit margins (8.6%) are lower than last year (10.4%).

Past Earnings Growth Analysis

Earnings Trend: POLYPLEX's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: POLYPLEX's earnings growth over the past year (11.1%) is below its 5-year average (22.8% per year).

Earnings vs Industry: POLYPLEX earnings growth over the past year (11.1%) underperformed the Chemicals industry 29.6%.

Return on Equity

High ROE: POLYPLEX's Return on Equity (18.1%) is considered low.

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Financial Health

How is Polyplex's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: POLYPLEX's short term assets (₹36.4B) exceed its short term liabilities (₹13.0B).

Long Term Liabilities: POLYPLEX's short term assets (₹36.4B) exceed its long term liabilities (₹6.3B).

Debt to Equity History and Analysis

Debt Level: POLYPLEX has more cash than its total debt.

Reducing Debt: POLYPLEX's debt to equity ratio has reduced from 25.4% to 17.7% over the past 5 years.

Debt Coverage: POLYPLEX's debt is well covered by operating cash flow (59.6%).

Interest Coverage: POLYPLEX's interest payments on its debt are well covered by EBIT (62.8x coverage).

Balance Sheet

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Dividend

What is Polyplex current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.65%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: POLYPLEX's dividend (4.65%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: POLYPLEX's dividend (4.65%) is in the top 25% of dividend payers in the Indian market (1.89%)

Stability and Growth of Payments

Stable Dividend: POLYPLEX's dividend payments have been volatile in the past 10 years.

Growing Dividend: POLYPLEX's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (38.1%), POLYPLEX's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (206.3%), POLYPLEX's dividend payments are not well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

14.5yrs

Average board tenure

CEO

Pranay Kothari (62 yo)

12.75yrs

Tenure

₹39,286,200

Compensation

Mr. Pranay Kothari has been the Chief Executive Officer of Polyplex Corporation Limited since September 07, 2009. Mr. Kothari served as the Chief Executive Officer of Polyplex (Thailand) Public Company Lim...

CEO Compensation Analysis

Compensation vs Market: Pranay's total compensation ($USD501.93K) is above average for companies of similar size in the Indian market ($USD337.69K).

Compensation vs Earnings: Pranay's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: POLYPLEX's board of directors are seasoned and experienced ( 14.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31