TCPL Packaging Sharekhan Research Report

TCPL would be one of key beneficiaries of the improving demand environment in the FMCG space. Further, the rising trend in the E-Commerce space would add on to the overall revenues in the coming years. We expect TCPL’s revenues and PAT to grow at a CAGR of 19% and 28% respectively over FY2015-18. Despite consistent operational performance, TCPL is trading at 7.2x its FY2018E earnings, which is at a discount to its peers, such as Huhtamaki PPL and Essel Propack, which are trading at 15x and 12x respectively their FY2018 consensus estimates. Hence, in view of consistent operating performance, better earnings visibility and discounted valuations, we have re-initiated our positive view on the stock with an upside of 20-25%

TCPL-Packaging-Sharekhan