Equity Watch

Paper Products is a Powerhouse of flexible packaging

Paper Products is a 59% holding subsidiary of world renowned Euro 2.1 billion collapsible packaging wonder huhtamaki ..Company specialises in Flexible packaging,Labelling Technologies,Specialised Cartons,Packaging Machines, Holographic options etc..

In India the average age of the growing population is only 27 years,and its imperative that for this age group  27 +/- 10 years excellwnt packaging of any consumer product is of paramount importance.Companies business is sustainable over the next 50 years with 2 digit consumption growth..

 With Three state of the art, fully integrated manufacturing facilities at Thane, Silvassa and Hyderabad; highly skilled and experienced staff, PPL is capable of working with the customer from product inception to the super market and with complete control and confidentiality.

Today, PP very much  matter to those, for whom packaging matters most. And this is reflected in the impressive client list that includes, Levers, Nestle, Cadbury, Britannia, Glaxo Smithkline, Coca Cola, Perfetti, Dabur, Marico, P&G

For a ZERO debt Co. with paid up share capital of Rs.12.5 cr ,a decent turn-over of more than 600 crores ( expected  Rs. 750 crs for FY10 ending Dec2010) and expected EPS of more than Rs. 10 for FY10, the share is going very cheap.FINANCIALs

Buy at present level with 2 year HOLD is recommended.

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

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3 thoughts on “Paper Products is a Powerhouse of flexible packaging

  1. Mahesh says:

    Dear Ashok Sir,

    Thank you for coming back, i have been waiting for your new analysis :).

    Packaging industry will be boom in the coming decades due to high quality requirement of youths.

    I have one question : How govt. “Ban on Plastic” will effect these plastic packaging company ?. As Govt. planning to pass the bill to ban plastic.

    In this case manjushree technopack will get affected, but parekh aluminex will benefit.

    If you have any other stock that benefit please let me know and also the impact of govt. policies on plastic :).

    Thank once again sir.

    Like

  2. Hi Mahesh,

    Good question!! How govt. “Ban on Plastic” will effect these plastic packaging company?
    Most of Paper Products clients are MNC’s with unparallel social responsibilities and committed to protecting the water bodies.I am sure they are proactive and use of plastics in flexible packaging is already getting minimized.
    Investment in PP is recommended as the PARENT( huhtamaki )Co. is Europe based and these issues of ban on plastics and use of economical bio-degardeable plastics in its place is already in vogue.PP shall benefit from its parent co.

    Uflex is another co with similar business as PP, but I dont like the Indian Mgt..You may also look at relatively unknown co ARROW COATED PRODUCTS .Its a KPO with some patents in bio-degradable plastics..

    Like

  3. Mahesh says:

    Ashok Sir,

    Thank you so much for candid reply.

    Keep posting your fundamental analysis, i am experiencing rich learning from your blog :).

    Thank you.

    Like

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