Shares of Jindal Poly Films hit four year highs

Shares of Jindal Poly Films hit four year highs after the plastics film maker reported a strong set of quarterly earnings mainly on account of lower raw material costs and partly due to a fall in financing charges.

Jindal Poly Films said its first quarter net profit more than doubled to 107.1 crore rupees from 49 crore rupees in past quarter a year ago. Sales in April-June rose 8 percent to 720.9 crore rupees versus 667.2 crore rupees in the year ago period.

Jindal said its raw material costs fell to 454 crore rupees compared with 469 crore rupees and financing costs dipping to 6.81 crores versus 8.9 crores in the two comparative periods.

As a consequence, Jindal Poly jumped 34 rupees, or 9.7 percent, to 384.50 rupees, its highest since May 2011 on the National Stock Exchange where 8.3 lakh shares were traded compared with the 5-day average of 2.87 lakh shares.

Jindal Poly's market capitalisation has surged 35 percent to 1,470 crore rupees in the past one year. Yet the stock trades at 0.9 times its book value of 402 rupees.

Image credit: Indiatimes