Zee Business’ analysis reveals reason behind Polyplex Corp's good margins

The Q4 results of Ployplex Corp showed revealed triggers for the increased margins. Zee Business’ Managing Editor spoke with Research Analyst, Arman Nahar, to decode the reason behind it.

According to Nahar, superstar investor Dolly Khanna’s shareholding in the company increased from 1.09 per cent to 1.3 per cent. The shareholding of foreign institutional investors (FII) grew from 9.29 per cent to 10. 23 per cent, and the total number of FIIs grief from 110 to 131.

The prices of bopet increased by 20 per cent in the Q3. The raw material used to make bopet is natural gas and crude oil. The increasing prices in natural gas and crude oil haven’t affected the margins of Polyplex Corp. In fact, their margins have grown from 14 per cent to 16 per cent in tandem with increasing prices of raw materials used. The company earns 56 per cent of its revenue from the production of Bopet.

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As per the NSE website, the company’s stock was down by 0.93 per cent and closed at Rs 2,600. The company has given auto Rs 153 as a dividend, Nahar said.

According to Nahar, the reason behind the robust margins of the company is its ability at doing backward integration along with forwarding integration. In FY18, the revenue generated was around 56 per cent at a margin of 14 per cent, and in FY19, the share increased to 70 per cent, and margins grew up to 16 per cent.

The company has also increased the prices of bopet. With the increase in the prices of raw materials for bopet, the company also increases its margin. The capacity utilisation of the company is always ahead of the industry. Speciality films revenue has increased from 24 per cent in FY17 to 33 per cent in FY22. And if you look at the 9 months revenue, it was increased to up to 34 per cent. 

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PolyplexCorp में आगे बनेगी तेजी?

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जानिए पूरी डिटेल्स अरमान नाहर से..@ArmanNahar @AnilSinghvi_ pic.twitter.com/CW97Gr8oLW

— Zee Business (@ZeeBusiness) April 21, 2022