A small cap company with a market capitalization of 301 crore in the packaging industry is GKP Printing & Packaging Ltd. Industries served by GKP Printing & Packaging Ltd (GKPL) include garment exports, steel utensils, playing cards, liquor, toys, pharmaceuticals, printers, engineering, confectionery and FMCG . One of the most prestigious brands in the packaging industry, GKP Printing & Packaging Ltd. is also one of India’s leading producers and exporters of Cardboard Boxes, Corrugated Boxes, Display Boxes, Mailing Boxes, Labels, Stickers, Inserts and Leaflets, Mono Boxes and others products. According to the company’s website, it also markets kraft paper, duplex paper, and low-density plastic.

Additionally, it recently purchased 43,234 square feet of land in Vapi, Gujarat, for relocation of its dominant production facilities and expansion of operations. GKPL currently generates around 200 MT out of a monthly installed capacity of 300 MT. The Vasai-based GKPL factory comprises 20,000 square feet of infrastructure, including two fully operational state-of-the-art factories which include the largest punching machine in Mumbai and Thane. Tata Consultancy Services, Spectra International, Naaptol, ShopCJ, SM Foods, Almats Branding Solutions, Rediff.com and Spectra International Limited are just some of the companies the company is affiliated with.

On July 6, 2022, the company informed BSE that its board of directors was considering filing an application for the company to be listed directly on the main board of the NSE platform and to authorize one of the directors / corporate secretaries of the Company to sign and execute all necessary documents and do whatever may be necessary to apply for the Company’s direct listing on the main board of the NSE Platform.

On BSE, the stock closed today at Level 205.70, up 1.26% from its previous close of 203.15. GKPL shares have gained 677.69% over the past year, from a price of 26.45 on July 9, 2021, at the current price of 205.70 as of July 7, 2022 at 3:43 a.m. IST. The stock has gained 42.35% year-to-date (YTD) so far in 2022. The stock has climbed 40.27% in the last six months and 30.23% in the month last. The stock’s return over the last five trading days was 5.22%. At the current price, the stock is trading 4.32% below its 52-week low and 691% above its 52-week low on BSE, where it hit a 52-week high of 215.00 on 07/07/2022 and a minimum of 52 weeks of 25.98 on 07/07/2021.

The company is virtually debt-free, which may be good news for the stock. Additionally, the stock made a positive break of the resistance level on Thursday. Since September 2019, the company’s sponsor stake at 52.95% and the public stake at 47.05% have remained stable. The company posted a low return on equity (ROE) for the quarter ended March 2022 at 3.60%, which is the lowest since March 2018. The return on assets (ROA) is also 2.14% , and it has steadily declined over the past four years. These two ratios show that the company’s profits are insufficient in relation to its equity and that it is unable to use its assets to their full potential to increase its profits. The stock is currently selling at a high EV/EBITDA ratio of 127.49 and has a book value per share of Rs. 14.84, meaning the shares are currently trading at a P/B ratio of 13.86 times its book value, indicating that the stock may be expensive.

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