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 October 11, 2024. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.33 times. Additionally, the company has shown very positive results in the quarter ending June 2024, with a growth in operating profit of 230.6% and a net sales of Rs 1,233.08 crore, the highest in the company's history.
Technically, the stock is currently in a mildly bullish range, with an improved trend since October 8, 2024, generating a return of 10.7%. The MACD and Bollinger Band technical factors also indicate a bullish trend for the stock.

However, the company has shown poor long-term growth, with a net sales growth of only 3.86% and a negative operating profit growth of -14.04% over the last 5 years. This may be a cause for concern for investors.

Furthermore, the stock is considered risky due to its negative operating profits and trading at a higher valuation compared to its historical average. In the past year, while the stock has generated a return of 20.23%, its profits have fallen by -86.6%.

It is also worth noting that despite being a smallcap company, domestic mutual funds hold only 0% of the company's shares. This may indicate that they are not comfortable with the current price or the business of the company.

In the last 1 year, Jindal Poly Films has underperformed the market, with a return of 20.23% compared to the market's (BSE 500) return of 34.90%. This may be a cause for concern for investors looking for higher returns.

Overall, while Jindal Poly Films has shown positive results in the recent quarter and has a strong ability to service debt, its poor long-term growth and risky nature may make it a hold for now. Investors should carefully consider their options before making any investment decisions.