Kanpur plastipack ltd -Outpacing commodity space, evolving through innovation

+65

Market Impact Score

-100 Bearish+100 Bullish

AI Analysis

The packaging sector benefits from industrial growth and demand for bulk packaging. Capacity expansions are key for market share and revenue growth.

Consider a long-term investment perspective for KPL, focusing on execution of the expansion and subsequent financial performance.

•KPL is undertaking a massive expansion amounting to 85 crore.
•The expansion involves incremental capacity addition of ~8500 tonne.
•It is expected to be financed with a mix of debt (~60%) & equity (~40%).
•Expected to be commissioned in H2FY19, ushering in volume led growth from FY19E onwards.
•At peak utilisation levels, it will generate sales of ~120 crore, with intended RoCE of ~16-18%.

Kanpur Plastipack Ltd

Positive

Capacity expansion is expected to drive significant volume and revenue growth from FY19 onwards.

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