The shares of the leading Plastic rigid sheets manufacturer gained up to 6 percent after the company announced to set up a new unit for capacity expansion worth Rs 5 crore.
Price movement
With a market capitalization of Rs 187 crore, the shares of Rajshree Polypack Ltd were trading at Rs 25.50 per share, increasing around 4 percent as compared to the previous closing price of Rs 24.54 apiece.
Reason for Rise
The shares of Rajshree Polypack Ltd have seen positive movement after signing a five-year lease for a factory at Somnath Kachigam Road, Nani Daman, to establish Unit III. The new unit will expand capacity with 1,600 MTPA extrusion and 1,250 MTPA thermoforming, enhancing operations. The investment is valued at Rs 5 crore.
Financial condition
Analyzing the company’s financial performance, revenue zoomed by 12 percent from Rs 64.82 crore in Q3FY24 to Rs 72.70 crore in Q3FY25, during the same time, net profit slashed from a profit of Rs 2.55 crore to a loss of Rs (0.94) crore.
It has a P/E ratio of 29.3, compared to the industry’s P/E ratio of 22.8, indicating that the stock is trading at a lower price, the stock is overvalued. Additionally, the company’s debt-to-equity ratio stands at 0.66.
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Product Development
The company expanded its injection molding portfolio by launching 20+ new products in food packaging. It added 16 new domestic and international customers while enhancing brand presence through participation in Anuga Tech (Mumbai) and Fine Foods (Australia), reinforcing its global market reach and product innovation efforts.
Management Outlook
Management has deferred Odisha plant investment for 6-8 months to stabilize existing projects. FY25 revenue guidance remains at ₹310-320 crore, with 12-15% growth expected in FY26. Targeting 14% EBITDA margins, the company focuses on improving its working capital cycle, aiming to reduce it below 100 days within two quarters.
Company Snapshort
Rajshree Polypack Limited is engaged in the business of manufacturing and trading of Plastic Packaging Products. The Company operates through its three manufacturing units in Daman. It manufactures Plastic rigid sheets and Thermoformed packaging products ranging from Yoghurt containers to daily containers, sweet boxes, MAP, retort trays, and fruit punnets.
Written by Abhishek Singh
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