Jindal Poly Films Upgraded to 'Hold' by MarketsMOJO, Shows Strong Debt Servicing Ability

Jindal Poly Films, a smallcap company in the plastic products industry, has recently been upgraded to a 'Hold' by MarketsMOJO on November 4, 2024. This decision was based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.33 times.

In their latest financial results for June 2024, Jindal Poly Films showed a growth in Operating Profit of 230.6%, leading to a Very Positive declaration. Their Profit After Tax (Q) also saw a significant growth of 293.0%, while their Operating Profit to Interest (Q) ratio was at its highest at 1.29 times. Additionally, their Net Sales (Q) also reached a new high of Rs 1,233.08 crore.

Technically, the stock is currently in a Mildly Bullish range, with the technical trend improving from Sideways on October 29, 2024. Since then, the stock has generated a return of 3.19%. A key technical factor, the MACD, has also been Bullish since October 29, 2024.

However, Jindal Poly Films has shown poor long-term growth, with Net Sales growing at an annual rate of only 3.86% and Operating Profit at -14.04% over the last 5 years. This may be a cause for concern for investors.

The stock also carries some risk, as it has negative Operating Profits. In the past year, while the stock has generated a return of 18.48%, its profits have fallen by -86.6%. This may indicate that the stock is trading at a higher risk compared to its average historical valuations.

It is also worth noting that despite the size of the company, domestic mutual funds hold only 0% of the company. This may suggest that either they are not comfortable with the current price or they have not conducted in-depth research on the company.

In the last 1 year, Jindal Poly Films has underperformed the market, with a return of 18.48% compared to the market (BSE 500) returns of 31.79%. This may be a factor to consider for potential investors.

Overall, while Jindal Poly Films has shown positive results in the short term, its long-term growth and risk factors may be a cause for caution. Investors should carefully consider all aspects before making any investment decisions.