Jindal Poly Films (Code : 500227) India’s largest manufacturer and exporter of flexible packaging films, Jindal Polyfilms is engaged into production of polyester films (BOPET), polypropylene films (BOPP), metallised films and coated films with in house ability to produce polyester chips for captive consumption. Financially, company didn’t take the benefit of recent amendment in AS11 and provided huge forex loss to the tune of Rs 61 cr in P&L a/c for FY09. But in the FY10 it is has recorded gains instead. Accordingly for the nine months ending Dec’09, its revenue improved by nearly 10% to Rs 1155 cr but PAT doubled to 159 cr. EPS of Rs 64 for FY10. Interestingly company has been announcing regular buy back since last couple of years and has even been increasing the buy-back price. In the first buy back which it closed in April 2009, company had bought back an aggregate of 32,34,492 equity share at an average market price of Rs 270.17 per share absorbing a total amount of Rs 87.38 cr. It came with second buy back @ Rs 400 and now recently it announced third buy back @ Rs 450 per share. Long term investors should keep accumulating at every decline.
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