One of the penny stocks engaged in manufacturing innovative, rigid thermoformed plastic packaging solutions for industries like food, beverages, pharmaceuticals, and electronics, focusing on quality, sustainability, and durability. Ace investor Dolly Khanna has made a fresh investment of 1.16 percent in the company.
Stock Price Movement
With a market capitalization of Rs. 260.81 crores, the shares of Rajshree Polypack Limited are trading at Rs. 35.56 per equity share, down nearly around 1.14 percent from its previous day’s close price of Rs. 35.97.
Company Overview
Rajshree Polypack Limited is a leading manufacturer of plastic rigid sheets and food packaging products. The company offers diverse solutions like yogurt cups, daily containers, and advanced barrier products for MAP and retort applications, serving the packaging needs of the food industry.
Shareholding pattern
In December 2024, Rajshree Polypack Limited had a majority stake held by the promoters at 44.11 percent and the public at 55.89 percent.
In public holding, Ace investor Dolly Khanna has made a fresh stake of 1.16 percent in the company, which had a holding value of Rs. 3.2 crore with ownership of 8,52,621 shares.
Management Guidance
The company maintains FY25 revenue guidance at Rs. 310-320 crore, targeting 12-15% growth in FY26. The company aims for 14% EBITDA margins, reflecting a conservative outlook. It also focused on improving the working capital cycle, targeting a reduction to below 100 days within two quarters.
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Product Development
Rajshree Polypack Limited expanded its injection molding portfolio by launching over 20 new products and adding 16 domestic and international customers. The company participated in major exhibitions to enhance brand visibility and strengthen market presence.
Olive Ecopack introduced 125 SKUs, stabilized production, and anticipates its first export order. The company revised sales expectations to Rs. 30-35 crore this year, with an ambitious potential of Rs. 180 crore next year.
Capacity Expansion
Rajshree Polypack Limited is rapidly expanding its production capabilities by adding a new thermoforming machine. This strategic move increases the company’s capacity to 10,770 metric tons annually, with another machine installation in progress to further boost capacity to 11,520 metric tons.
The company is also enhancing its extrusion line, planning to increase capacity from 20,000 to 24,000 metric tons, with commercial production set to begin in January 2025. Additionally, the injection molding capacity has been successfully expanded to 3,300 metric tons through a partnership with a toll manufacturer.
Recent quarter results and ratio
Rajshree Polypack Limited’s revenue has increased from Rs. 67.50 crore in Q2 FY24 to Rs. 88.28 crore in Q2 FY25, which has grown by 30.79 percent. The net profit has also grown by 45.45 percent, 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 should be 8.81 percent and 6.03 percent, respectively. The debt-to-equity ratio of the company is to be 0.66x. Waaree Rajshree Polypack Limited’s EPS is to be Rs. 19.1.
Written By – Nikhil Naik
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