Stock of this packaging firm has soared 59% in 8 trading sessions of March

BSE has sought clarification from Jindal Poly Films with reference to significant movement in price. The reply, however, is awaited

Shares of Jindal Poly Films hit a new high of Rs 781.45, up 10 per cent on the BSE, in the intra-day trade on Wednesday on the back of strong demand. The stock of the containers & packaging company has zoomed 59 per cent in the first eight trading days of March, as compared to a 4.3 per cent rise in the S&P BSE Sensex.

Taking note of the heavy volume on the counter, the BSE sought clarification from Jindal Poly Films on March 8 with reference to significant movement in price, "in order to ensure that investors have latest relevant information about the company and to inform the market so that the interest of the investors is safeguarded". The reply, however, is awaited.

Jindal Poly Films is engaged in the manufacturing of Biaxially-Oriented Polyethylene Terephthalate (BOPET) and Biaxially Oriented Poly Propylene Films (BOPP films), Cast Poly Propylene Films (CPP films), Thermal Lamination Films and Non-Woven Products such as Interlining, Disposable Fabrics and Fabrics for Industrial Applications, etc.

Under the influence of Covid-19 pandemic, the packaging industry continued to remain on its toes to meet all time high demand for packed food, medicine and other essential goods.

For the first nine months (April-December) of the current financial year 2020-21 (9MFY21), Jindal Poly Films had reported 60 per cent year on year (YoY) jumped in its consolidated net profit at Rs 560 crore. The company posted net profit of Rs 489 crore during entire previous financial year 2019-20 (FY20).

In recent years, India has seen sustainable packaging growth due to the increase of packaged food consumption and awareness, and demand for quality products. Consumer awareness surrounding packaged food, specifically packaged food deliveries, has heightened. The boom in e-commerce and organized retail is expected to enhance the growth of plastic packaging and per capita consumption in the near future, the company said in FY20 annual report.

The rapid growth of the market is primarily driven by the pharmaceuticals and foods and beverages industries. Huge investments in the food processing, personal care, and pharmaceuticals end-user industries are creating scope for expansion of the packaging market. The growth of the packaging market in India is largely driven by various logistic applications, technological advancements, and the development of the packaging sector across the country, it said.