Polyplex Corporation – Positive Outlook Ahead
By Super Trader on Jan 19, 2012 with Comments 0
The Company is a producer of thin polyester films for application in packaging, electrical and other industrial segments, such as hot stamping foils, thermal lamination, release films and air conditioning ducts. It has recently started production in BOPP and CPC. It has manufacturing facilities in Thailand, India and Turkey, with a distribution setup in the U.S.
Company has posted a Sales growth of 40% CAGR over a period of 5 years. During the same period, EPS has grown by 170% and the BVPS has seen growth at 22% CAGR. Net operating cash flow of the company has also witnessed a growth of 45% CAGR which indicates that the company is well financed to carry on its operations.
Margins of the company remain stable. From 2007 onwards, margins have increased substantially and that has been reflected in the performance of the stock. In difficult economic conditions, though stock has corrected so much, fundamental performance of the stock remains strong. One concern for the company was its mounting debt, which in recent quarters has seen signs of tapering off.
Technically, the stock has fallen from levels of 500 to 170. This move must have shaken out most of the investors in the stock and hence now seems to be a good time to start accumulating this stock. Currently the stock is forming a base around 150 levels and unless this level breaches, this stock remains a good buy.
