Dolly Khanna acquires new stake in stock during Q3 – a potential investment opportunity worth monitoring
Dolly Khanna: Rajshree Polypack Limited is a penny stock company that specializes in manufacturing innovative, rigid thermoformed plastic packaging solutions for various industries such as food, beverages, pharmaceuticals, and electronics. The company prides itself on its commitment to quality, sustainability, and durability. Notably, renowned investor Dolly Khanna has recently acquired a 1.16 percent stake in the company.
Stock Price Movement
Currently, Rajshree Polypack Limited has a market capitalization of Rs. 260.81 crores, with shares trading at Rs. 35.56 per equity share. This represents a slight decrease of approximately 1.14 percent from the previous day’s closing price of Rs. 35.97.
Company Overview
Rajshree Polypack Limited is a prominent manufacturer of plastic rigid sheets and food packaging products. The company offers a wide range of solutions, including yogurt cups, daily containers, and advanced barrier products for MAP and retort applications, catering to the packaging needs of the food industry.
Shareholding Pattern
As of December 2024, the majority stake in Rajshree Polypack Limited is held by the promoters at 44.11 percent, with the public holding 55.89 percent. Notably, Dolly Khanna has acquired a fresh stake of 1.16 percent in the company, amounting to a holding value of Rs. 3.2 crore, with ownership of 8,52,621 shares.
Management Guidance
The company has set its FY25 revenue guidance at Rs. 310-320 crore, with a target of 12-15% growth in FY26. Rajshree Polypack Limited aims to achieve 14% EBITDA margins, reflecting a conservative outlook. Additionally, the company is focused on improving its working capital cycle, aiming to reduce it to below 100 days within the next two quarters.
Product Development
Rajshree Polypack Limited has significantly expanded its injection molding portfolio by introducing over 20 new products and acquiring 16 new domestic and international customers. The company has actively participated in major exhibitions to increase brand visibility and solidify its presence in the market.
Olive Ecopack has successfully launched 125 new SKUs, improved production stability, and is now expecting its first export order. The company has adjusted its sales projections to be between Rs. 30-35 crore for this year, with an ambitious goal of reaching Rs. 180 crore next year.
Capacity Expansion
Rajshree Polypack Limited is currently in the process of expanding its production capabilities by installing a new thermoforming machine. This strategic decision will increase the company’s capacity to 10,770 metric tons annually, with plans for another machine installation underway to further boost capacity to 11,520 metric tons.
Furthermore, the company is enhancing its extrusion line to increase capacity from 20,000 to 24,000 metric tons, with commercial production scheduled to commence in January 2025. Additionally, the injection molding capacity has been expanded to 3,300 metric tons through a successful partnership with a toll manufacturer.
Recent Quarter Results and Ratios
Rajshree Polypack Limited has experienced a significant revenue growth from Rs. 67.50 crore in Q2 FY24 to Rs. 88.28 crore in Q2 FY25, representing a 30.79 percent increase. The net profit has also seen a substantial growth of 45.45 percent, rising from Rs. 2.09 crore in Q2 FY24 to Rs. 3.04 crore in Q2 FY25.
In terms of return ratios, the company’s ROCE and ROE are expected to be 8.81 percent and 6.03 percent, respectively. The debt-to-equity ratio of the company is projected to be 0.66x. Wa
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.