The giant of the packaging sector has once again proven its dominance. In Thursday’s trading session, the company’s shares reached their highest level of INR 4,320 per share. Here, we are talking about TCPL Packaging. Renowned investors Anil Goel and Seema Goel hold 7.69% and 1.38% stakes in the company, respectively. Based on the December quarter, the value of Anil Goel’s investment has surged to approximately INR 340 crore.
A Look at TCPL Packaging
TCPL is a well-known name in the packaging industry. The company provides its services to businesses in the food, beverages, pharmaceuticals, and FMCG sectors. It is primarily known for its foldable paperboard solutions.
The company’s product portfolio includes folding cartons, litho-lamination, and blister packs. Additionally, TCPL has launched new products such as printed cork-tipping paper, laminates, sleeves, and wrap-around labels. This expansion has further strengthened the company’s reputation in the packaging industry.
Stock Performance: A Staggering Rally
In 27 February’s trading session, TCPL’s stock surged to INR 4,320 per share which is a 2,700% increase from its four years lowest price of INR 156 per share. To put this in a scenario, if you had invested INR 1,00,000 at its lowest price, it would have grown to INR 28 lakh today. If we talk about the last 365 days’ performance, TPCL rode the wave and surged ~95% in a year, which means it almost doubled the investment.
The last two days alone saw a ~10% rise and the stock reached its all-time high of INR 4,230. All technical indicators are indicating bullish momentum. The stock is trading above its 50-day, 100-day, and 200-day moving averages. It indicates a strong upward trajectory.
Blowout Financial Performance in Q3FY25
TCPL Packaging’s third quarterly report also fuelling this tremendous growth. The company’s net profits doubled to INR 37.7 crore, revenues surged 32% YoY. Ebitda also climbed to INR 70.60 crore reflecting a 29% increase from the previous year. The company’s profit margins stand at 14.7% suggesting that the company’s operations are cost-effective.
Valuation and Market Sentiment
TCPL’s price-to-earnings (P/E) ratio stands at a reasonable 26.9x—aligning with the industry’s standards. Earnings per share (EPS) of the company also increased to 217% in the last three years. Apart from this, investors are taking a cautious stance in the ongoing market turmoil.
Why Long-Term Investors Should Take Notice
TCPL Packaging is a classic example of how patience is rewarded in the stock market. The company is evolving over time and delivering impressive results. As of December 2024, promoters are holding a 55.74% stake in TCPL. A high percentage of promoter’s holding indicates the promoter are believing in the company and further increases the investor’s confidence.
Final Thoughts
India has a rapidly growing stock market. There are so many companies that daily touch their all-time high but for a company to reach an all-time high in a falling market is extraordinary. Analysts are optimistic about the packaging industry as the companies are shifting towards ecofriendly packaging and TCPL has its chance to capitalize on it. TCPL’s commitment to sustainability and innovation will likely keep it ahead of the curve—and in the portfolios of savvy investors.
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