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Systematix Research Report
TCPL Packaging Ltd. is India's leading packaging solution provider that specializes in manufacturing paperboard and flexible packaging materials. We met the company's management to understand its business outlook. Incorporated in 1990, TCPL is promoted by the Kanoria family, known for its varied business interests in jute, tea, textiles, pharmaceuticals and chemicals.
Under packaging, the company offers folding cartons, flexible packaging, and specialty packaging options. Headquartered in Mumbai, the company has pan-India presence with eight state-of-art manufacturing facilities, set up across 5 locations. It has marketing offices in key metro cities and international presence in through its office in UAE.
In FY23, the company operated at an installed capacity of 100,000 tonnes per annum. Since inception, the company has maintained its stellar revenue and profit track record, having leveraged its capabilities in sustainable packaging solutions.
TCPL is one of the few companies in India to have clocked ~18% revenue compound annual growth rate over last 15 years. Exports constituted 26% of the company's revenue during 9M FY24.
The company is poised for continued growth, buoyed by-
strong industry tailwinds,
expanded production capabilities,
diverse product portfolio, and
a growing customer base.
The company's strategic focus revolves around-
optimising capacity utilisation,
enhancing product mix,
exploring newer geographies, and
bring cost efficiency.
We do not have a rating on the stock, which currently trades at 14 times FY25 consensus earnings per share of Rs 155 (Bloomberg).
Key risks:
intense competition,
raw material price volatility, and
growth slowdown in the end-user industry.
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