Hold Polyplex Corporation; target of Rs 672: Dalmia Securities

Dalmia Securities' research report on Polyplex Corporation

Polyplex Corporation Ltd (PCL) is one of the world's largest manufacturers of thin Polyethylene Terephthalate (PET) film catering to Packaging, Industrial, Electrical & Imaging industry through its state-of-the-art manufacturing plants and distribution facilities in India, Thailand, Turkey and the US with a global market share of ~5% in the thin PET film. PCL has a capacity of 186,000 MT of thin PET film and 28,800 MT of thick PET film which forms majority of the capacity.

Outlook

We recommend a Hold on PCL with target price of INR 672, valuing the stock at 3x EV/EBITDA.