Genuit Group’s (GEN) shares have almost halved since hitting an all-time high of 806p at the end of August 2021. The company, formerly Polypipe, deals largely in the manufacture of plastic pipes. This means it faces a double whammy in terms of hydrocarbon price hikes, given it uses crude as a feedstock and is also being hit by higher energy prices.
Indeed, its share price seems almost inversely correlated to the price of a barrel of Brent, which has jumped by about 48 per cent since Genuit’s share price peak.
The company said in its results in March that it is offsetting input inflation with “necessary market-leading price increases”.