This smallcap stock surges 11% today, hits new high; zooms 85% in 9 months

Shares of TCPL Packaging hit a new high of Rs 3,925, surging 32% in the past three weeks

Shares of TCPL Packaging (TCPL) hit a new high of Rs 3,925, as they rallied 11 per cent on the BSE in Wednesday’s intra-day trade on a healthy business outlook. In the past three weeks, the stock has surged 32 per cent after the packaging company reported a strong set of numbers for the quarter ended December 2024 (Q3FY25). In the past nine months, the price of this smallcap company has zoomed 85 per cent from the level of Rs 2,123.

 

In the past one year, TCPL has outperformed the market by surging 68 per cent. In comparison, the BSE Sensex was up 4.8 per cent, while the BSE Smallcap index was down 1.1 per cent.

 

TCPL is one of India’s leading producers of sustainable packaging solutions for customers across industries. The company partners with customers to provide paperboard-based packaging solutions including folding cartons, printed blanks and outers, litho-lamination, plastic cartons, blister packs, and shelf-ready packaging. TCPL has also ventured into the flexible packaging industry, with the capability to produce printed cork-tipping paper, laminates, sleeves, and wrap-around labels. 

 

In Q3FY25, TCPL’s consolidated net profit more-than-doubled to Rs 37.7 crore, from Rs 18.8 crore in Q3FY24. The company's total revenue grew 32 per cent to Rs 479.7 crore in Q3FY25, from Rs 363.6 crore in the corresponding quarter of the previous year. Earnings before interest, tax, depreciation and amortisation (Ebitda) grew 29 per cent year-on-year to Rs 70.60 crore, due to a favorable product mix, and continued expansion in customer base. However, margins remained flat at 14.7 per cent in Q3FY25 as against 15.0 per cent in Q3FY24.

 

The company achieved its highest-ever quarterly performance this quarter driven by strong growth in key segments, paperboard, and flexible packaging. Revenues rebounded strongly from a lower base last year, achieving significant Y-o-Y growth. Sequential revenue also remained healthy, reflecting sustained business progress.

 

The management anticipates a favourable shift in market dynamics as demand conditions improve, suggesting strong growth in the coming quarters. TCPL has also signed an exclusive manufacturing agreement with Ventit, a pioneer and patent holder in ventilated pizza box technology.

 

The growth outlook for the company appears steady aided by a clear strategic vision, an experienced management team, and a track record of market share gains, according to analysts. TCPL is well positioned to navigate future challenges and capitalise on growth opportunities due to better supply chain efficiencies. In the medium-term, the integration of a new flexible packaging line and advanced offset printing capabilities should drive volume growth further, adding to its earnings potential, analysts at Nuvama Wealth and Investment had said in a November 2024 report.

 

Meanwhile, as on December 2024, TCPL has a total 9.1 million outstanding equity shares. Of this, the promoters held a 55.74 per cent stake. The remaining 44.03 per cent shareholding resides with resident individual shareholders (25.21 per cent), mutual funds (7.73 per cent), alternate investment funds (3.95 per cent) and corporate bodies (3.52 per cent), shareholding pattern data on the exchanges shows.