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Monday, August 23, 2010

**[investwise]** Jindal Polyfilms-Does It Not Deserve Atleast A PE of 10?

 

Jindal Polyfilms-Doesnt This Stock Need A PE Re-rating?
 
From Unilever's Soaps, to Pepsi Food's Salties and Coke's Bottled Beverages, Jindal Poly supplies them all-Packaging films to PET bottles. So is this sector not an FMCG play with 1/4th the PE of FMCG concerns? With consistent record of profitability and high dividends should this sector not deserve a re-rating?
 

JPFL today delivers full range of PET films which includes Chemical coated films, Opaque white films, Matte films, Co-extruded clear and Ultra clear films, High strength yarn grade films for the converting industry, graphic arts industry, electrical insulation applications, labels, release liner coating and other wide range of applications.

 

Current Pet Films capacity is 124000 tpa with 5 Lines. 1 more line of 8.7 mtrs width with an annual capacity of 30,000 MT is being expected to be commissioned by August 2011.
 

JPFL started the manufacture of BOPP films in 2003, the most widely used flexible packaging films in the world. Taking advantage of India's growing demand, JPFL has rapidly increased its BOPP film Capacity from 90000 MT in 2006 to 180000 MT in 2010 and we are now India's largest producer of BOPP films.

 

State-of –the-art manufacturing facilities from DORNIER, BRUCKNER & GOEBEL help JPFL produce thin films, matte films, over wrap films, heat sealable films, metalizable / metalized films, label films, opaque white and P.S. tape / garment bag film etc.

 

Jindal Poly Films Ltd commenced the first metallizing production in January 2003 using sophisticated technology. We have world class Metalizers from Applied Materials, Germany.

 

Metallized BOPET Films are used for Flexible, packaging, metallic yarn, sequins for textiles, decoratives etc. And Metallized BOPP films are used for flexible packaging, gift wraps and decoaratives. The thickness of film is 12 micron- 150micron, the max width is 2830mm, and min width is 210mm that can be slitted into different sizes as per customers' specifications.
  • Current metallizing capacity is 50000 tpa with 8 metalizer. Orders for two new metallizers of combined capacity of 27,000 tpa are already placed and expected to be commissioned by Jan and May 2011.

  • All metallizers are equipped with plasma treatment facility, amongst the first in India, to increase the shelf life & barrier properties.

  • The metallizers are capable of delivering pinhole free metallizing for the metallic yarn segment.
 
 

As a part of the forward integration of BOPP and PET Films, JPFL installed two coating lines for manufacturing of entire range of specialty coated films like PVdC, Acrylic, Low Temperature Seal and High Seal Integrity coatings. The main features of our Coated Films are :

 

1. Solvent Free coatings
2. Excellent Optics
3. Good Barrier - Moisture, Oxygen, Aroma, Gases
4. Good Printability
5. Heat Sealable
6. Good Machinability
7. Excellent consistency
8. Can be used as Monofilm or part of Laminate structure
 
PVdC coating enhance the moisture, gas and aroma barrier of the film where as acrylic coating facilitate printability, sealability and seal integrity of the film.
 
State of the art high performance coating facility from K-MEC and PAGENDARM enhance JPFL's capability to produce entire range of coated BOPP and PET film as well as development of new coatings for different applications and tailoring the products as per customer's requirements. Current Coated Films capacity is 4000 MT/Annum.
 

JINDAL GROUP stands for the highest quality of Polyester Films, Polyester chips and resins production facilities, with plants located at Nasik to cater to captive consumption.

In March 2004, Jindal Group installed a 50,000 TPA polyester chips facility at Nasik, in order to cater to captive requirement of new BOPET film lines.


 

1 more Poly Chips line with an annual capacity of 55,000 MT is being expected to be commissioned by Sep 2010. Another Pet Chips Plant with an annual capacity of 72000 TPA is being expected to Start by Aug 2011.
 


 
Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
 
Nothing in this article is, or should be construed as, investment advice.
 
 
 

 
 

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**[investwise]** India's Natural Gas Demand To Jump 4 Fold By 2015; GSPL, GAIL To Benefit

 

India's Natural Gas Demand to Rise 4 Fold by 2015, Key Beneficiaries would be Gujarat Petronet and GAIL
 
 
A. How Large Would Be India's Gas Grid By 2015?
 
India's natural gas carrying capacities are expected to increase to 490 mmscmd by 2015, a four fold increase over 2005.
 
Total length of Gas pipelines will grow from 5600 kms in 2005 to 11000 kms in 2010 and further to 24000 kms by 2015.
 
B. Where is the Additional Gas Demand coming from?
 
-City Gas Distribution (IGL, MGL and GGL)
 
-Industrial, Petchem and Refineries, Fertiliser plants and Power.
 
B. What is the current Natural Gas pricing structure?
 
PMT, Ravva, Lakshmi-Gauri, Niko-GSPC, Reliance and Long Term LNG from Exxon Mobil-Gorgon Field and Ras Gas works out to between $ 4.4 to 5.7 MBTU at the pit head levels to Gas Transporters.
 
C. Where is Natural Gas likely to come from?
 
D3 KG Basin is estimated to hold 3.9 TCF (Trillion cubic feet of gas), and is adjoining the transmission facilities of the KG6 linked East-West Gas Pipeline.
 
D9 KG Basin is estimated to hold 5.2 TCF of Natural Gas.
 
GS01 Gujarat Offshore-declared commercial feasibility comprising 5890 sq kms of Gas Field (Dhirubhai 33)
 
PY1 and PY3 Cauvery Offshore will start giving additional production of 40 mn BOEs from 2012.
 
CY/OS2 Cauvery Offshore North of PY1, awaiting arbitration decision but ready to go commercial.
 
In all about 9.3 TCF of Gas Assets Discovered in KG, Cauvery and Gujarat Offshore, even excluding the GSPC owned Deen Dayal Fields which alone are believed to hold Gas Reserves of 5 TCF.
 
D. Production ramp-up by Reliance and it's partners, GSPC and ONGC will coincide with additional gas trunk lines, leading to rapid industrialisation in the heartland of India.
 
E. Current Consumption Jan 2010- 166 mnBTUs, a four fold increase
 
-Base Case Demand Assuming 6% Annual Demand Growth on as is basis policy-230 mn BTUs by 2015.
 
-Additional Demand if Natural Gas committed at $ 10-11/mmbtu at customer gate, the upside demand then rises 9 per cent per annum to 280 mnBTU's.
 
-Committing Natural Gas at $ 10-11 per MBTUs to Gas Based power, will raise Natural Gas demand Growth at 12 per cent per annum and will take 2015 Gas Demand at 320 mn BTUs.
 


Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.
 
Nothing in this article is, or should be construed as, investment advice.
 
 
 

 
 

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INVESTMENTS IN INDIA
We are low-risk, long-term investors. 

Stocks, mutual funds and the entire investment gamut.  Only financing/investment avenues in India will be discussed. 

For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in

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