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Ventura Securities
TCPL Packaging (Buy)
Target: ₹961
CMP: ₹525.55
TCPL Packaging Ltd (TCPL) prides itself on its track record of consistent growth (17.7 per cent) over the last 15 years. It is also one among the 105 listed companies out of over 6,000 that have shown growth every year for the last 10 years. Today TCPL is one of India’s largest manufacturers of folding cartons and stand alone converters of paper boards. It is also a preferred sustainable packaging solutions provider having marquee clients across industries. The global sustainable packaging market is forecasted to grow at a CAGR of 6.7 per cent from $281 billion to $469 billion. This is expected to trigger another leg of high growth for the industry.
Consolidation of capacities in favour of environmentally friendly technologies is expected to lower competition. Being one of the larger players with better technology and know-how, the company is well poised to take advantage of this technology transition waiting to happen in the next 10-15 years.
Commissioning of the second manufacturing line in FY22 is expected to double the Flexible Packaging capacity. In its subsidiary TCPL Innofilms, the setting up of a poly-ethylene blown film line are baby steps in this direction. The output finds application not only in-house but also has huge commercial potential.
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