Huhtamaki PPL Ltd
NSE: PAPERPROD
CMP: 215
MARKET CAP: 1600 CRORES
PRICE TO EARNING: 9x
ROCE: 15.22%
DEBT: 268 CRORES V/S 3 YEARS AGO 400 CRORES.
DEBT TO EQUITY: 0.39
PROMOTER HOLDING: 66.94%
(1/n)
HPPL mainly caters to the premium segment of packaging. It has 65% market share in flexible packaging.
(2/n)
HPPL derives 80-90% of its revenues from the FMCG industry.
(3/n)
Currently stock trades at 0.60x market cap to sales, lower than peer Essel Propack into tubes etc which trades at 2x market cap to sales.
(4/n)
Post COVID era growth in packaged food sector is expected to acclerate, as a result most of the FMCG Stocks are back to all time highs.
(5/n)
Stock should be back to its recent highs made in February of 300+.
As it is an MNC, HPPL can be be given space in the Core Portfolio.
(6/n)