Kanpur Plastipack Limited

Consumer Cyclical — Packaging & Containers · NSE

₹238.10+₹5.18 (+2.22%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Kanpur Plastipack Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kanpur Plastipack Limited manufactures and trades in industrial packaging solutions in India and internationally. It operates through Plastic Division, Consignmnet Stockiest and Trading; and Solar Power Division segments.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees1,491

Annual revenue₹714 Cr

How does it make money?

Turns over ₹714 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 1,491 employees supports ₹47.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹47.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 19.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +50% while net margin moved +628% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+50%

Margin effect+628%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.62 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

73/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

81/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

12.7x

3Y Median

64.9x

40 monthly readings · mean 146.3x · range 14.2x–638.8x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 80% below its 3y median of 64.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 82% below the peer median of 69.2x.

vs. its own history

Cheap

64.9x median over 40 months · -80%

vs. sector peers

Cheap

69.2x median of 4 peers · -82%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.4x

PEG

0.10

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 5.6% to 10.3% over 3 years.
Debt is being paid down
Total debt is down 32% over 3 years.
Cash generation is improving
Free cash flow is up 53% over 3 years.
Return on equity is rising
ROE has improved from 2.0% to 14.7%.
Return on capital is rising
ROCE has improved from 4.6% to 19.1%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 95% against revenue up 50% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 5.6% to 10.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 32% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 80% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 82% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 95% against revenue up 50%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.6% CAGR
Latest reported year was 13.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹36 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 4 neutral · 0 weak

Market Cap

₹583 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.7x

Cheap

Cheap against the generic band

P/B Ratio

2.17x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹18.81

Profitable

Profitable on a per-share basis

ROE

14.7%

Moderate

Moderate capital efficiency

ROCE

19.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.42x

Low

Conservative leverage

Revenue Growth (YoY)

13.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

112.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.50%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹36 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.0%

Average

Average margins

Net Margin

6.1%

Average

Average bottom-line conversion

Current Ratio

1.74

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.62

Defensive

Steadier than the market

52W Range Position

66%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

247.8 / 249.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹474 Cr	₹495 Cr	₹559 Cr	₹714 Cr	+14.6%
EBITDA	₹27 Cr	₹30 Cr	₹56 Cr	₹73 Cr	+40.2%
EBITDA Margin	5.6%	6.1%	10.0%	10.3%	—
PAT (Net Profit)	₹4 Cr	₹1 Cr	₹11 Cr	₹39 Cr	+122.1%
EPS	₹1.68	₹0.38	₹5.03	₹16.8	+115.4%
ROE	2.0%	0.4%	5.4%	14.7%	—
ROCE	4.6%	5.8%	15.9%	19.1%	—
Total Debt	₹166 Cr	₹224 Cr	₹145 Cr	₹112 Cr	-12.1%
Free Cash Flow	₹24 Cr	-₹47 Cr	₹32 Cr	₹36 Cr	+15.2%

🟢 Revenue has grown at 14.6% a year over 3 years.

🟢 EBITDA has grown at 40.2% a year over 3 years.

🟢 EBITDA Margin has risen from 5.6% to 10.3% over 3 years (+4.7 pts).

🟢 PAT (Net Profit) has grown at 122.1% a year over 3 years.

🟢 EPS has grown at 115.4% a year over 3 years.

🟢 ROE has risen from 2.0% to 14.7% over 3 years (+12.7 pts).

🟢 ROCE has risen from 4.6% to 19.1% over 3 years (+14.5 pts).

🟢 Total Debt has shrunk at 12.1% a year over 3 years.

🟢 Free Cash Flow has grown at 15.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹470 Cr

Total Liabilities

₹201 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹51 Cr

Capex

-₹15 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.2%

Corporate Actions

Dividend Rate

₹1.2

Ex-Dividend Date

03 Aug 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive2 mixed3 general

Kanpur Plastipack Share Price News: Price Action Review

Univest, 13 Oct

Kanpur Plastipack schedules Q2FY27 earnings call for October 29

scanx.trade, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Investors Shouldn't Be Too Comfortable With Kanpur Plastipack's (NSE:KANPRPLA) Earnings

Simply Wall Street, 22 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Compare KANPUR PLASTIPACK with

Equitymaster, 03 Oct

Kanpur Plastipack Q1 Net Profit Drops to 121M Rupees, Revenue Rises to 2.02B Rupees

Sahi, 27 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Kanpur Plastipack vs Nifty 50: Share Price Performance Compared

Univest, 01 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑