Company Profile -
The company is the leader in manufacturing plastic packaging products including pails. It specialists in both standard and made to order packaging solutions for industries like paints, lubricants, cosmetics, pharmaceuticals etc.
In a new development the company is venturing into providing packaging solutions for ice creams by making tubs for packing ice creams and orders for the same have started from players like Baskin Robbins and other ice cream brands.
The company has for the first time in India introduced In Mould Labeling (IML) decorating system to expand the product range.
Investment theme -
Recession proof, high dividend paying, good growth, market leader.
Financials -
In the March quarter company has posted revenue of 68 crores and EPS of close to 2 rs. for the quarter. Every quarter company is posting decent numbers and close to 5% growth in revenue numbers. As company has very good brand like Amul and Castrol in their hand, they are likely to improve their margin in coming quarters. Further, promoters and FII both are buying the quantity of this stock as it looks cheaper from their competitors. With 3 Rs. dividend paying on YOY and 8 Rs. of EPS company is ruling at PE of 8 at CMP of 64. We recommend to buy for the short term target of 84.
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