XPRO India Ltd: The only Indian manufacturer of Capacitor or Dielectric Films in India

XPRO India Limited is a company in India that is engaged in the business of polymer processing. Its Biax Division manufactures a range of coextruded biaxially oriented polypropylene (BOPP) films and dielectric films on the automated production lines, which uses in various food packaging, cigarette overwraps, and adhesive tapes. 

In the Coex Division, they produce sheets and films made by combining different types of plastics together. It is the largest supplier of Coextruded sheets/Liners to the Indian Refrigerator Industry. 

Furthermore, it holds a unique position as the sole manufacturer of dielectric films in India, fulfilling approximately 33% of the country’s domestic demand. As the rest of the demand is currently met through imports, this creates a natural market for the company. 

Capacitors play a crucial role in electricity distribution and consumption, and the market for them is continuously growing, especially with a strong focus on infrastructure development. 

Additionally, the Electric Vehicle segment offers significant opportunities, as capacitors are widely used in various applications related to EVs, including power control units, inverter circuits, DC link power capacitors, start-stop systems, high-intensity discharge xenon lamps, passive key entry systems, pressure monitoring systems, driver information and entertainment systems, climatization, airbags, and braking systems. 

Financial Overview 

If we check the company’s financials, annual revenue experienced an increase of 8.42%, from Rs 469 crore to Rs 509 crore. The operating profit of the company stands at Rs 74 crore, accompanied by an operating profit margin of 15%. Furthermore, the net profit of the company amounts to Rs 45 crore. The debt on the balance sheet is Rs 38.7 crore having a debt-to-equity ratio of 0.19 times. 

The company’s return on capital employed (ROCE) and return on equity (ROE) are reported as 28.4% and 26.6%, respectively.  The book value of the company is Rs 111 whereas the price to book value is 8 times. 

Share Performance 

Today, the stock commenced trading at Rs 920, down by 1.8% from the previous day’s closing price of Rs 903, and concluded the session at Rs 887.90, Rs 15.10, or 1.67% down on the BSE. The stock’s 52-week highs and lows are Rs 980.05 and Rs 528, respectively. Currently, its market capitalization stands at Rs 1572.59 Crore. 

Over the past six months, the stock has delivered an impressive return of 38%, while in the last two years, it has generated a multibagger return of 335%. In the last three years, the company’s returns would leave investors stunned, as they have reached an astonishing 5850%. 

In terms of ownership, the promoters hold 45.26% of the company’s shares, while foreign institutional investors (FIIs) and domestic institutional investors (DIIs) hold 11.96% and 0.67%, respectively. The Public investors hold a 42.07% stake in the company. Furthermore, as per the latest update, FII has raised its stakes significantly, increasing them from 0.08% to 11.96%. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.