Polyplex Corporation surges 10% on hopes of strong operational performance

Shares of Polyplex Corporation surged 10 per cent to Rs 2,134 on the BSE in Tuesday's intra-day trade amid expectations of strong operational performance going forward.

The stock of the containers & packaging company was trading close to its record high level of Rs 2,150, touched on February 10, 2022. In comparison, the S&P BSE Sensex was down 0.20 per cent at 56,374 points at 11:45 AM.

In the past one week, Polyplex has outperformed the market by surging 15 per cent after rating agency India Ratings and Research (Ind-Ra) revised Polypiex Corporation's outlook to 'Positive' from 'Stable' while affirming its long-term issuer rating at 'IND AA-'.

"The outlook revision reflects a sustained improvement in the consolidated operating performance of the company in FY21 with growth in the revenue and EBITDA margins and which Ind-Ra expects over the medium term, backed by an expansion in the volumes," Ind-Ra said in its rating action.

In December 2021, Polyplex commissioned its 60,000MT BOPP facility in Indonesia. Furthermore, the company plans an expansion of a 50,000MT BOPET facility in the US and a 4,392MT of blown PP films capacity in Turkey. Additionally, the company will incur a capex for setting up coated films facility in Turkey and the US.

Given this, Ind-Ra expects the operation ramp-up at its BOPP facility and the commencement of additional capacities over the medium-term will support the volume growth and is likely to ensure a healthy operating performance of the company.

Polyplex’'s product portfolio includes PET films (thin & thick), BOPP, cast polypropylene and blown polypropylene. These products are used in flexible packaging besides several industrial applications such as tapes, labels, thermal lamination, imaging and graphics, photovoltaic and optical applications.