Jindal Poly Films Ltd.
NSE: JINDALPOLY | BSE: 500227
Q3 FY2025 Stock Research Report
1. Company Overview
Jindal Poly Films Ltd. (JPFL) is one of India’s largest manufacturers of Biaxially Oriented Polypropylene (BOPP) films, Biaxially Oriented Polyester (BOPET) films, and Cast Polypropylene (CPP) films. The company operates in the nonwoven fabric segment, serving hygiene, medical, and automotive industries across 100+ countries.
2. Key Financial Highlights – Q3 FY2025
Standalone Financial Performance
| Metric | Q3 FY2025 | Q3 FY2024 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹18,673 Cr | ₹14,044 Cr | +39.4% |
| Other Income | ₹1,163 Cr | ₹13,665 Cr | -91.5% |
| EBITDA | ₹2,241 Cr | ₹9,284 Cr | -75.9% |
| Net Profit | -₹250 Cr | ₹8,746 Cr | Loss |
Consolidated Financial Performance
| Metric | Q3 FY2025 | Q3 FY2024 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹1,37,119 Cr | ₹98,376 Cr | +39.4% |
| Total Income | ₹1,37,847 Cr | ₹1,11,300 Cr | +23.8% |
| EBITDA | ₹4,605 Cr | -₹4,619 Cr | Profit |
| Net Profit | ₹410 Cr | -₹1,943 Cr | Turnaround |
3. Business Segments & Product Portfolio
Packaging Films
81% of Revenue
Products: BOPP, BOPET, CPP films
Q3 Growth: 42.3% YoY
Nonwoven Fabrics
13% of Revenue
Products: Hygiene, medical, automotive-grade
Q3 Growth: 36.1% YoY
Self-Adhesive Labels
6% of Revenue
Products: Industrial and consumer labels
Q3 Growth: 28.5% YoY
4. Capital Expenditure & Expansion Plans
BOPP & BOPET Expansion
Investment: ₹1,200 Cr
Focus: Film capacity expansion
Specialty Films
Investment: ₹800 Cr
Focus: High-value products
Nonwoven Plant
Investment: ₹500 Cr
Focus: New facility
5. Competitive Landscape & Industry Outlook
| Company | Market Share | Key Strengths |
|---|---|---|
| Jindal Poly Films | 18% | Largest exporter, global reach |
| UFlex Ltd. | 15% | Strong R&D, flexible packaging leader |
| Cosmo Films Ltd. | 12% | Specialty films innovation |
| Polyplex Corp. | 10% | High-margin specialty films |
6. Risks & Challenges
Raw Material & Energy Costs
- Rising crude oil prices impact production costs
- Power & fuel costs increased by 36.8% YoY
Debt Levels
- Total Debt: ₹4,255 Cr
- Debt-to-Equity Ratio: 1.07x
7. Valuation & Investment Thesis
Market Metrics
Market Cap: ₹3,412 Cr
Current Price: ₹779
52-Week Range: ₹449 – ₹1,150
Valuation Metrics
P/E Ratio: 19.8x
Book Value: ₹975
Dividend Yield: 0.71%
Return Metrics
ROCE: 3.15%
ROE: 1.74%
Valuation Analysis
- P/E Ratio of 19.8x indicates fair valuation compared to peers
- Price-to-Book (P/B) Ratio: 0.8x suggests undervaluation
- Debt remains a concern, but strong revenue growth supports deleveraging
Investment Timeline
| Timeline | Outlook | Rationale |
|---|---|---|
| Short-Term (6-12 months) | Cautious | Rising costs and high debt concerns |
| Long-Term (3-5 years) | Positive | Global expansion and strong market positioning |
8. Conclusion & Investment Recommendation
JPFL maintains its position as a market leader in packaging films, demonstrating strong revenue growth and ambitious global expansion plans. However, investors should consider the risks posed by high debt levels and volatile raw material costs.
Investment Recommendations
- Long-term Investors: Hold/Accumulate on dips (Ideal buy zone: ₹650-₹700)
- Short-term Traders: Avoid until margin recovery is visible
9. Industry Growth Trends
Market Projections
- Flexible Packaging Market CAGR: 6-8%
- E-commerce boom driving protective packaging demand
- Sustainability trends favoring recyclable films
- Medical & Hygiene segments showing rapid growth