Multibagger alert: This small-cap packaging company delivered 1.5x returns in just one year!

Multibagger alert: This small-cap packaging company delivered 1.5x returns in just one year!

Stock Recommendations
by 5paisa Research Team Last Updated: 2022-09-14T15:59:23+05:30

Meanwhile, the S&P BSE SmallCap index, of which the company is a part, climbed only 5.69%. 

TCPL Packaging Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price jumped from Rs 530.3 on 15 September 2021 to Rs 1378 on 13 September 2022, an increase of 159% in the one-year holding period. An investment of Rs 1 lakh in the shares of this company last year would have turned to Rs 2.59 lakh today. 

Meanwhile, the S&P BSE SmallCap index, of which the company is a part, climbed only 5.69%. In the last 1 year, the index has climbed from the level of 28,284.07 on 15 September 2021 to 29,893.97 on 13 September 2022. 

TCPL Packaging is one of India’s largest manufacturers of folding cartons, and India’s largest standalone converter of paperboard. TCPL manufactures folding cartons, printed blanks and outers, litho-lamination, plastic cartons, blister packs and shelf-ready packaging. TCPL has also ventured into the flexible packaging industry, with the capability to produce printed cork-tipping paper, laminates, sleeves and wrap-around labels. 

In the recent quarter Q1FY23, on a standalone basis, the company’s net revenue increased by 46.78% YoY to Rs 327 crore. Similarly, the bottom line increased by 275.44% YoY to Rs 22.58 crore. 

The company is currently trading at a TTM PE of 19.05x, as against the industry PE of 22.85x. In FY22, the company delivered an ROE & ROCE of 15.28% and 15.33% respectively. 

Today, the scrip opened at Rs 1388, which was also its day’s high. The stock touched an intraday low of Rs 1308.90. So far 6,507 shares have been traded on the bourses. 

At 3.15 pm, the shares of TCPL Packaging Ltd were trading at Rs 1,319, a decrease of 4.28% from the previous day’s closing price of Rs 1378 on BSE. The stock has a 52-week high & low of Rs 1,540.45 and Rs 452 respectively on BSE. 

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Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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