ValuePickr Forum

“Polyplex Corporation “ Is Good Days Ahead?

Was going through the AR 16-17. Haven’t completed reading it as yet, however I stumbled upon something while digging information (while googling and other links which I am going to provide below) of Mr Sanjiv Saraf (the Chairman) and the management team.

This link mentions that “The
company is promoted by Mr Rohit Saraf (brother of Mr Sanjiv Saraf, the promoter of the Polyplex Group)”

Now if one googles Mr Rohit Saraf’s name one of the link that turns up is-

Also, Dr Suresh Inderchand Surana (who is an independent Director at POLYPLEX) "served as a Director of Facor Alloys Ltd. until October 30, 2006"

Now assuming that Mr Narayandas Durgaprasdji Saraf is his father, and if we google his name then-

And Facor steel has been recently listed/declared a shell company-

Now, it is no way to say that Mr Sanjiv Saraf just because his brother Rohit Saraf and Late father Narayandas Saraf were involved in wrong economic activities, is also of similar nature but this maybe something to ponder upon.


Any particular reason for you to find the management manipulative??

P.S- please forgive me for-

-overthinking in this aspect.
-if the post has been presented in a confusing way

Disclosure- currently invested and was thinking to add further. However, waiting for further views


Technically It has given mutli year break out at 490 levels .
Current P/B Value is 0.72 ,
FY17 book value per share (Rs) Target : 744

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@jitenp Dear Sir, have read some of your posts and have high regards for your thought process. Some where I read you are interested in Polyplex Corp. Any info or thoughts you can share w/respect to the promoter and some information that was dug up by me w/respect to his brother and other subsidiaries?


Dalmia securities has recently published buy call on Polyplex. Report is as attached.

28-02-2018- Dalmia Sec.pdf (940.3 KB)

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The thai subsidiary has a market cap of 14.94 billion baht,works out to about 3000 crore.Polyplex corp has a stake of 51 percent ,directly of 16.5 percent and indirectly through a wholly owned subsidiary polyplex asia pte ltd of 34.5 .Total value of shares works out to 1530 crore.Now we need to apply a holding company discount of 30 percent,which puts the total value of holding at around 1000 crore.

The funny thing is CARE has a A rating to its debt instruments.

I am thinking of putting my money in.

Disclosure:Not invested.

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You are not overthinking at all.You have made a valid point and yes narayandas durgaprasad saraf is the father of rohitkumar saraf.The company looks cheap ,but the promoters dont inspire confidence.If they can cheat people on land they can cheat shareholders too.

Disclosure :Not invested

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2018 polyplex analysis
Hi everyone,
i have just started with the process of analyzing companies; below is my analysis of Polyplex Corp, please share your valuable inputs on the analysis;

Polyplex Corporation
About Company:

  1. Manufactures PET film
  2. Customers in 70 Countries
  3. operation in 6 different countries


  1. Manufacturing Facility closer to regional market
  2. expected CAGR of 7% in food packaging industry
  3. Emerging demand from Asian countries like India, China and SE regions
  4. New Manufacturing Facility in Indonesia
  5. Backward integration of manufacturing for greater efficiency
  6. top five global producers and plastic film manufacturers of thin PET films


  1. Growing alternatives of food packaging
  2. Mature American Market (Polyplex have presence in US)


  1. Great Positive Cash Flow from operations (around 440 cr in 2017)
  2. P/E=11; low as compared to industry (5 year EPS growth 18.7%)
  3. (Debt/Equity) Ratio=0.84 (Not that great)
  4. Sales growth for past 3 years=.37% (dismal rate)

with the presence of manufacturing facility in SE Asian region, the company can show good growth rate in the future, but it has to make some rationing for R&D in order to compete with the alternative products.

Please share your view on the analysis above, what should i incorporate more to get better picture of the company investment scene.
Need help from seniors @Donald @hitesh2710 @bheeshma


I just checked on, and the PE seems to be 5.72 and the D/E 0.34.

How did you get the higher numbers?

Hi tamnay,
i got the data from screener, its 10.7 there.

There is a huge cash in the books. But what is puzzling is there is also a huge debt in the books as well. Per latest annual report the long term borrowing is ~255 crore. As per notes section most of this is in foreign currency. The short term borrowing is 484 Crore. Most of this short term seems to be for working capital requirements. Creates some doubts as why such huge borrowing if there is such a huge cash.

The interest income from Financial Assets is 29 Crore as per the notes section in AR. The Interest expense ans other borrowing expense is 39 Crore. Clearly the higher cash in Balance Sheet is earning less than the debt expense in Balance sheet. Why not pay off the debt?

This could otentially be another “curious case of Polyplex corporation”


The figures appear too good to be true.

In the consolidated figure the Company is having

a) Other Financial Assets (10) Rs 278.48 Cr
(Fixed Deposit with Banks (Refer note 44)

b) Cash & Cash equivalents (16) Rs 333.70 Cr

c) Bank balances other than above (17) Rs 449.94 Cr

Total cash a+b+c = 1062.12 Cr

Borrowing Long term Rs 245.48 Cr
borrowing Short term Rs 418.75 Cr

Total Rs 664.23 Cr

Why is Company carrying debt of around Rs 664.23 Cr when it is having cash of around Rs 1062.12 Cr in its book.

Net Enterprise value : Rs 1000 Cr
Last year Consol EBIDTA Rs 890 Cr

Disclosure : Not invested but tracking if the story is worth…

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The company has contingent liability of around 1400 Cr, and they have written in there AR FY19 that it is probable that they will have to settle the liability.

This can be the reason of not using cash to settle debt.

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I could not find in the Annual report , can you please advise the page number.

I forgot to mention page number in my previous reply.
You can get this on page 92 (standalone) and on 149 (consolidated).

But there is no major change in consolidated numbers.

I am still not able to find in relevant pages. …Please advise

In this para the company have stated that “It is probable that the group will be required to settle the obligation, whose amount can be recognised”

And in note 44 the amounts are given.

The amounts are in lacs and not crores. Let me know where is it mentioned 1400 crores??

My bad, i just checked.
I dont know how i missed that.
Sorry for misleading.

Hi Parth, thanks for clarifying