This small-cap packaging stock is a hidden gem; do you have it?

Unilever, Nestle, Amul, Parle, Britannia, Ferrero, Patanjali, Haldiram, Colgate Palmolive, ITC Limited, Jio, Samsung, Raymond, Johnson & Johnson, Dabur, and Godrej are among the marquee customers of the company.

On November 9, the shares of TCPL Packaging Ltd surged 13.48 per cent and closed at Rs 1405. The stock opened at Rs 1429.95 and so far, has made an intraday high and low of Rs 1430.1 and Rs 1361.6, respectively. The stock is rallying on account of strong Q2FY23 results, which the company disclosed yesterday, on November 8. 

TCPL Packaging is one of India’s leading producers of sustainable packaging solutions. It caters to consumer goods, food and beverage, tobacco, liquor, agrochemicals, pharma, and various other industries. It is one of India’s largest folding carton manufacturers and converters of paperboard.  

The company has a long list of high-profile clients. Unilever, Nestle, Amul, Parle, Britannia, Ferrero, Patanjali, Haldiram, and others are among the companies in the food and beverages segment. 

Other notable customers of the company, across other industries, include Colgate Palmolive, ITC Limited, Jio, Samsung, Raymond, Johnson & Johnson, Dabur, and Godrej. 

The company announced Q2FY23 results yesterday. On a YoY basis, its revenue grew by 37.94 per cent and came in at Rs 349 crore. While, for the same quarter, its net profit jumped by 272 per cent YoY and stood at Rs 41 crore.  

About the shareholding pattern, 55.74 per cent of the company’s stake is owned by the promoters, 0.8 per cent by FIIs, 3.37 per cent by DIIs, and the rest 40.1 per cent by non-institutional investors.      

The company has a market capitalisation of Rs 1291 crore and is currently trading at a PE multiple of 17x. The stock has a 52-week high and low of Rs 1540 and Rs 452, respectively.