INSUBCONTINENT EXCLUSIVE:
Mumbai: A strong earnings visibility, robust balance sheet, recent capacity expansion and inexpensive valuations make shares of Polyplex
Corporation (PCL), the sixth-largest player in the global thin BOPET film market, attractive at the current market price.
PCL commissioned a
BOPET line in Indonesia in November 2019, increasing its capacity by 16 per cent
The stock which rallied 13 per cent so far this year, ended at Rs 577.20 on Thursday.
The global BOPET cycle has turned around with a
slowdown in capacity additions as against a growth of 7-8 per cent in demand
As a result, analysts expect a margin upcycle for BOPET players over FY20-FY22E
with net cash position of Rs 521 crore or Rs 163 per share as on March 31, 2019 (which is 28 per cent of current market capitalisation)