Recent Price Movements and Market Performance
The stock has been under pressure for several sessions, registering a consecutive four-day fall that has eroded 6.08% of its value during this period. On the day in question, the share price hit a fresh 52-week low of ₹475.05, marking a 3.35% intraday decline. This weakness is further underscored by the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish technical outlook.
Comparatively, Jindal Poly Films has significantly underperformed the broader market indices. Over the past week, the stock declined by 5.86%, while the Sensex slipped only 0.55%. The one-month performance shows a sharper contrast, with the stock falling nearly 13% against a 1.74% gain in the Sensex. Year-to-date, the stock has plummeted 48.29%, whereas the benchmark index has risen by 8.35%. Over the last year, the stock’s return stands at a negative 54.36%, in stark contrast to the Sensex’s positive 3.87%.
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Financial Performance and Operational Challenges
Despite the steep decline in share price, Jindal Poly Films has demonstrated some positive financial attributes. The company maintains a strong ability to service its debt, with a low Debt to EBITDA ratio of 1.49 times, indicating manageable leverage. Additionally, the return on equity (ROE) stands at 2.4%, and the stock trades at a price-to-book value of 0.5, suggesting it is valued at a discount relative to its peers’ historical averages. Notably, the company’s profits have increased by 36% over the past year, and the PEG ratio is at 1, which typically signals fair valuation in relation to earnings growth.
However, these positives are overshadowed by significant operational setbacks. The company’s operating profit has contracted at an annualised rate of 56.26% over the last five years, reflecting poor long-term growth. The most recent quarterly results for June 2025 reveal a pre-tax loss (PBT less other income) of ₹117.21 crore, a decline of 51.4% compared to the previous four-quarter average. Net sales for the quarter fell by 18.8% to ₹1,083.41 crore, while interest expenses surged by 37.74% to ₹223.18 crore over the latest six months. These figures highlight deteriorating profitability and rising financial costs, which weigh heavily on investor sentiment.
Investor Sentiment and Market Positioning
Investor participation has increased recently, with delivery volumes on 08 Dec rising by 54.36% compared to the five-day average, indicating heightened trading activity amid the price decline. Nevertheless, the stock remains out of favour with domestic mutual funds, which hold no stake in the company. Given their capacity for detailed research and due diligence, this absence suggests a lack of confidence in the company’s current valuation or business prospects.
Furthermore, the stock’s liquidity is adequate for moderate trade sizes, but its persistent underperformance relative to the BSE500 index over one year, three years, and three months reinforces the perception of weak fundamentals and limited growth potential.
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Conclusion: Why the Stock is Falling
Jindal Poly Films’ share price decline on 09-Dec is primarily driven by a combination of weak financial results, poor long-term growth, and negative market sentiment. The company’s deteriorating operating profits, rising interest costs, and falling sales have undermined investor confidence. Despite some positive indicators such as profit growth and a low debt ratio, these have not been sufficient to offset concerns about the company’s sustained underperformance relative to market benchmarks and peers.
The stock’s technical weakness, reflected in its trading below all major moving averages and hitting a new 52-week low, further compounds the bearish outlook. The lack of institutional support from domestic mutual funds adds to the perception of risk, signalling caution among professional investors. Consequently, the stock continues to face selling pressure, resulting in its ongoing decline.
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