Kanpur Platipack Limited : Fast growing Undervalued company in packaging industry Buy at CMP 77-78

Kanpur Plastipack is Kanpur based Manufacturers of Flexible Intermediate Bulk Containers or FIBC, also known as Bulk Bags, Big Bags, Jumbo Bags for industrial and bulk transportation of cement, food grains, chemicals, fertilizers, pharmaceuticals and such material.

It has 3 manufacturing units in Kanpur.

Company is supplying products globally to countries like S,UK,Germany,Netherlands,Spain.Middle east South Africa Australia almost all over the Globe.

It achieved turnover of 215 crores in year 2013-2014 and expected to deliver turnover of 260 crores.The margins are expected to improve with fall in crude oil prices and reduction in raw material cost it should deliver EPS in range Rs18- 20 by year end at forward PE multiple  stock is available at PE multiple of 4-4.2.

Considering the existing price of 75-77 the stock appears to be very cheap.Looking at future growth potential lowering interest rates company has huge potential for growth from current levels.My target price for the stock is 140 which is almost 100% returns from current levels.

Company has been consistently paying dividend and last year dividend was 12%.

Promoters hold 70% shares in the company and currently there is no FII or DII invested which could be concern but once the stock gets intention from HNI, institutional investor should start rising from current levels

Investors with minimum 1 year horizon can invest at current levels for 100% returns.

Happy investing !