Huhtamaki PPL Ltd
MARKET CAP: 1600 CRORES
PRICE TO EARNING: 9x
DEBT: 268 CRORES V/S 3 YEARS AGO 400 CRORES.
DEBT TO EQUITY: 0.39
PROMOTER HOLDING: 66.94%
HPPL mainly caters to the premium segment of packaging. It has 65% market share in flexible packaging.
HPPL derives 80-90% of its revenues from the FMCG industry.
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.
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.
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.