Kanpur Plastipack Limited (KANPRPLA) AI Stock Analysis

• Market Cap: ₹4.10B
• Dividend Yield: 0.52%
• Average Volume (3M): 3.17K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 1.40
• Revenue Growth: 23.02%
• EPS Growth: N/A
• Country: IN
• Employees: 1,258
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaging & Containers
• EPS (TTM): 3.33
• Shares Outstanding: 23,560,457
• 10 Day Avg. Volume: 895
• 30 Day Avg. Volume: 3,172
• PEG Ratio: 0.02
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 7.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹190.00 ▲(7.68% Upside)

The score is driven primarily by strong revenue growth and materially improved cash flow generation, which outweigh moderate leverage concerns. The main offset is weak technical positioning (below key moving averages and negative MACD), while valuation is reasonable but not strongly supported by dividend yield.

Positive Factors

Sustained revenue growth

High, sustained top-line growth (~25.9% YoY) signals expanding demand or market share in core packaging operations. Over the next 2–6 months this supports operational leverage, capacity utilization and reinvestment potential, making revenue a durable growth driver.

Free cash flow recovery

The large turnaround from negative to positive free cash flow indicates material improvement in cash conversion and working-capital management. Sustainable FCF strengthens funding for capex, deleveraging, or shareholder returns and underpins long-term financial flexibility.

Solid capital structure

An equity ratio of ~42% reflects a balanced capital base that supports resilience to demand shocks and provides room for prudent financing. Over months ahead, this structural strength helps maintain investment capacity and credit access without aggressive refinancing risk.

Negative Factors

Low net profitability

A net margin near 1.8% and ROE ~5.4% denote limited ability to convert sales into shareholder returns. Persistently thin net profitability restricts capacity to self-fund growth, lowers return cushions against cyclical downturns, and makes long-term earnings improvement critical.

Moderate leverage

Debt/equity ~0.70 implies meaningful financial obligations relative to equity. While manageable now, sustained leverage limits strategic flexibility and increases vulnerability to interest-cost rises; lowering leverage would materially improve long-term resilience.

Large gross-to-net margin gap

A wide spread between gross margin (~25.9%) and net margin (~1.8%) highlights high operating or overhead costs eroding profitability. Unless cost structure or pricing improves, this structural compression will constrain sustainable earnings and free cash generation.

Kanpur Plastipack Limited Business Overview & Revenue Model

Company Description

Kanpur Plastipack Limited manufactures and exports flexible intermediate bulk containers (FIBC) worldwide. It also provides HDPE/PP (polypropylene) woven sacks, PP box bags, PP multi firament yarn, and food grade bags; fabrics including laminated and unlaminated, bale wrap, PP courier bags, perforated bags, and duffle tops/bottom; and liner. The company offers filler cord, net baffle, webbings, body bags, and crimp yarn as well as AC, all purpose, bike, cycle, garden, tiffin, and vegetable covers. Kanpur Plastipack Limited was incorporated in 1971 and is based in Kanpur, India.

How the Company Makes Money

Kanpur Plastipack Limited generates revenue through several key streams. The primary source of income is the sale of its packaging products, which are designed to meet the specific needs of different sectors. The company benefits from long-term contracts with major clients in industries such as food and beverage, pharmaceuticals, and consumer goods, ensuring a steady flow of orders. Additionally, KANPRPLA engages in exporting its products to international markets, which contributes significantly to its revenue. The company also invests in research and development to innovate and improve its product offerings, enhancing its competitive edge and enabling premium pricing. Strategic partnerships with suppliers and distributors further expand its market reach and enhance profitability.

Kanpur Plastipack Limited Financial Statement Overview

Summary

Strong revenue growth (+25.9% from 2024 to 2025) and a meaningful free-cash-flow rebound support the score. However, profitability is constrained by a low net margin (1.8%) and modest ROE (5.4%), and leverage is moderate (debt-to-equity 0.70).

Income Statement

Kanpur Plastipack Limited has demonstrated strong revenue growth, with a significant increase of 25.9% from 2024 to 2025. The company maintains healthy gross and net profit margins of 25.9% and 1.8%, respectively. However, the net profit margin is relatively low, indicating potential areas for cost management improvements. EBIT and EBITDA margins are moderate at 5.0% and 7.6%, respectively, which suggests reasonable operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.70, which is manageable but could benefit from further reduction. The equity ratio stands at 42.2%, indicating a solid capital structure. However, the return on equity is low at 5.4%, suggesting limited profitability in relation to shareholder investment.

Cash Flow

There is a strong recovery in free cash flow, with a notable growth from -526 million to 316 million. The operating cash flow to net income ratio is favorable at 3.35, indicating efficient cash generation relative to net earnings. The free cash flow to net income ratio is also strong at 2.85, reflecting good cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.73B	6.26B	4.97B	4.74B	6.23B	4.51B
Gross Profit	1.76B	1.65B	1.25B	1.24B	1.12B	1.36B
EBITDA	568.96M	478.62M	311.85M	256.49M	618.27M	624.58M
Net Income	185.26M	111.05M	8.07M	36.07M	261.99M	303.11M
Balance Sheet
Total Assets	0.00	4.88B	4.76B	4.07B	4.20B	3.76B
Cash, Cash Equivalents and Short-Term Investments	91.58M	91.58M	35.05M	18.69M	6.78M	40.93M
Total Debt	0.00	1.45B	2.26B	1.66B	1.83B	1.58B
Total Liabilities	-2.06B	2.82B	2.96B	2.27B	2.41B	2.19B
Stockholders Equity	2.06B	2.06B	1.80B	1.80B	1.79B	1.57B
Cash Flow
Free Cash Flow	0.00	316.45M	-526.48M	260.70M	-108.21M	-359.95M
Operating Cash Flow	0.00	372.54M	-48.53M	685.09M	288.70M	-36.39M
Investing Cash Flow	0.00	-43.76M	-398.02M	-409.55M	-384.21M	-339.73M
Financing Cash Flow	0.00	-271.44M	451.16M	-263.45M	61.03M	413.00M

Kanpur Plastipack Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 176.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KANPRPLA, the sentiment is Negative. The current price of 176.45 is above the 20-day moving average (MA) of 173.55, below the 50-day MA of 186.61, and below the 200-day MA of 196.54, indicating a neutral trend. The MACD of -3.11 indicates Negative momentum. The RSI at 47.01 is Neutral, neither overbought nor oversold. The STOCH value of 68.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KANPRPLA.

Kanpur Plastipack Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KANPRPLA	66 Neutral	₹4.10B	15.94	―	0.52%	23.02%	―
TAINWALCHM	63 Neutral	₹1.71B	23.08	―	1.64%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BANARBEADS	60 Neutral	₹740.60M	39.28	―	1.72%	-22.27%	-42.61%
RPPL	60 Neutral	₹1.16B	10.30	―	―	10.14%	73.18%
SHRENIK	38 Underperform	₹238.68M	150.00	―	―	-3.26%	―

Kanpur Plastipack Limited Corporate Events

Kanpur Plastipack Limited Forms Joint Venture with Essegomma S.p.A.

Kanpur Plastipack Limited has entered into a joint venture agreement with Essegomma S.p.A., Italy, to form a Joint Venture Company in India. This collaboration aims to leverage Essegomma’s expertise in Taslan yarn technology and Kanpur Plastipack’s manufacturing capabilities to produce and supply high-performance polypropylene yarn. The joint venture is expected to diversify Kanpur Plastipack’s product portfolio and create new opportunities in global markets, particularly in technical and luxury textiles.