Sep 23, 2014

Kanpur Plastipack Ltd: Value and Growth Stocks

These days packaging industry stocks are very much in discussion and it is catching investors attention. One such company which is in packaging industry is Kanpur Plastipack Ltd.
It is in industrial segment mostly provides packaging to industries. It is attractive at very low valuation.

The Company's products are used across a range of applications that include fertilizers, cement, animal feed and pet food, seeds, chemicals and minerals, sugar and flour, among others.

CMP= 55.50,
PE = 4.38,
P/B = 0.95,
P/S = 0.20.

Other things are also looking good.

It started with jute bag which you may be missing these days. Due to some regulation by govt, they saw a huge loss in its life but after rehabilitation by Board for Industrial and Financial Reconstruction (BIFR) in 1991, it started to stand up on its feet.  The turnover has reached to about Rs. 200 Crores from 44 Lacs with about 85% exports.

Seeing growth ahead in economy, we will definitely see increased demand for this company product's. This company produce big size bags used in various industries - cement, food grain, fertilizer, etc.
It also product woven bag accessories.

It started exporting to different countries as well.

Update: I just missed one problem and the problem is big enough to ignore. It is - Contingent liabilities of Rs.142.96 Cr. Compared to its size, this liability is big. The stock is in uptrend and if you have got it then hold for short period.