Polyplex Share Price Target 2023, 2024, 2025, 2030  | Share Price Prediction Polyplex.

polyplex share price target

Polyplex Corporation ltd. Share Buy Range:- Rs. 1300       Target:- Rs. 7500 by 2030. Polyplex share price.

Polyplex Share Price Today

In this article, we will calculate the share price targets Polyplex Corporation can achieve in the near future according to its projected sales and profits.

YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
2022137119202468
2023157722082838
2024181325393264
2025208529203754
2026239833584317
2027275838614964
2028317244405709
2029364751066565
2030419558727550
graph showing polyplex share price target
Polyplex Share Price target

About Polyplex Corporation

  • Polyplex is the seventh largest polyester film manufacturer globally. 
  • It has a diversified portfolio with customers in 75 countries.
  • It has both upstream and downstream capabilities.
  • Its products find application in the packaging of food and beverages, labels, beauty, personal and home care, health care, and pharma.
  • It provides products for the electronic and electrical industries, building and construction, and digital industries as well as liners for EV and solar panels.
  • It has a strong R&D and application capability.
  • It has taken initiatives to recycle waste, save energy, and use clean technology.

Calculating Polyplex Share Price Target

We can calculate the share prices of a company by projecting its future sales and profits using historical data.

These profits can then be used to calculate Mcap using PE a company is given usually by the share market.

This Mcap can be then used to calculate the share price.

For this, we need to do some assumptions based on historical performance.

Assumptions

Assumed Sales Growth

table showing polyplex CAGR sales
Polyplex : CAGR Sales

The company has given a consistent growth of 11% in sales in the last 10 years and 16% in the last 5 years. Although in TTM it is 30% being conservative let’s consider that in coming years the sales of Polyplex will grow by at least 15%. 

This seems realistic to us as it has a lot of scope in solar PV, lithium batteries, etc.

Profit After Tax Margin

  • Polyplex has variable Operating Profit Margins. Taxes and Other income is also variable.
  • PAT margin in the last 5 years has been between 8-18%, average coming out as 13%.
  • We will take average PAT as PAT margins = 13%.

PE

Graph showing Polyplex historical PE
Polyplex: PE Historical

Plastic companies are always given lower PE. Its PE has been in the range of 2.7 to 17.1 and median PE being 7.8. Being on the conservative side let’s take 7 as base PE.

  1. Base Case – 7
  2. Bear Case – 5
  3. Bull Case – 9

Number of Shares

The company has 3.14 Cr. of shares.

Formulas used for Calculating  Share Price Target

  1. Projected Sales (Next Year)= Sales Current Year + X% of Sales Current Year,         where X= Assumed Sales Growth.

Eg:-  Projected Sales 2023 = Sales 2022 + 20 % Sales 2022.

  1. Projected Profit = Projected Sales X Profit After Tax  Margin
  1. Market Capitalization (____ Case) = Projected Profit X PE (______ case)
  1. Share Price (____ Case) = Market Capitalization (____ Case) / No. of Shares
  1. Historic data can be fetched from www.screener.com

Polyplex Projected Sales and Projected Net Profit

YearProjected Sales ( In Cr.)Projected Net Profit ( In Cr.)
20226624861
20237618990
202487601139
2025100741310
2026115851506
2027133231732
2028153221992
2029176202291
2030202632634
Graph showing polyplex sales and net profit
Polyplex : Projected Sales and Net Profit

Polyplex Share Price Target Base Case

YearPE (base case)Mcap ( Base Case) ( In Cr.)Share price (Base Case)
2022760281920
2023769322208
2024779722539
2025791682920
20267105433358
20277121243861
20287139434440
20297160345106
20307184395872
Technical chart showing Polyplex share price target base case
Polyplex Share Price Target: Base Case

Polyplex Share Price Target Bear Case

Read :- Zomato Share Price Prediction

YearPE (Bear Case)Mcap (Bear Case) ( In Cr.)Share Price (Bear Case)
2022543061371
2023549511577
2024556941813
2025565482085
2026575312398
2027586602758
2028599593172
20295114533647
20305131714195

Polyplex Share Price Target Bull Case

YearPE (Bull Case)Mcap (Bull Case) ( In Cr.)Share Price (Bull Case)
2022977502468
2023989132838
20249102493264
20259117873754
20269135554317
20279155884964
20289179265709
20299206156565
20309237087550

Polyplex Share Price Target 2023

YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
2023157722082838

Polyplex Share Price Target 2024

Read More: Lux Industries Share Price Prediction

YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
2024181325393264

Polyplex Share Price Target 2025

YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
2025208529203754

Share Price Target 2030

YearShare price (Bear Case)Share Price (Base Case)Share Price (Bull Case)
2030419558727550

Read More: ICICI Lombard Share Price Prediction

Conclusion

  • Polyplex is debt free with cash equivalent more than debt.
  • ROCE is 29% which is great.
  • There has been a constant increase in sales both on QoQ and YoY basis.
  • Variations in Operating Profit can be seen on a QoQ basis. This is because the main raw material for this company is crude oil.
  • The profit of the company was reduced due to softer market conditions.
  • On YoY, basis profits have increased every year.
  • Reserves have doubled since 2011 from about 1500 Cr to 3500 Cr.
  • The company is constantly expanding with CWIP of Rs.130 Cr.
  • Promoters and FII have increased their holding recently.
  • Polyplex has good fundamentals and could be considered for investment but only for the long term because Plastic is like a commodity and their is a lot of variation in its margins.

FAQ

Is Polyplex a debt free company?

Polyplex has debt to equity ratio of 0.25. It has a borrowing of 898 Cr. against cash equivalent of 1002 Cr. So virtually it is a debt free company.

Is Polyplex a good investment?

Polyplex is a company with good fundamentals. Within 1 year it has given a return of more than 300%. It is a volatile share but gives good returns during a rally. According to our analysts, long term vision is needed while investing in this stock.

Is Polyplex a multi-bagger?

In the past Polyplex has proved itself as a multi-bagger when it gave 300% return during a Jan’21 to Apr ’22.

Zerodha

Use the link to open a Demat account in Zerodha.

Disclaimer- All investments and trading in the stock market involve risk. Any decision to place a trade in the financial markets, including trading in stock should only be made after thorough research. Trading strategies or related information mentioned in the article is for informational purposes only. Use your due diligence before investing. These are just predictions. They may or may not be true. We are not SEBI-registered analysts.

Leave a Comment

Your email address will not be published. Required fields are marked *