Knack Packaging Limited is an integrated, innovation-oriented, export-led, and sustainable packaging solutions provider. The company offers a diverse range of customized packaging solutions, including Printed and Laminated Woven Polypropylene (PLWPP) bags and PLWPP Pinch Bottom bags that provide high-strength packaging for a wide range of sectors. Operating on a Business-to-Business-to-Consumer (B2B2C) model, Knack Packaging is recognized as one of the early movers in manufacturing BOPP/PLWPP bags and claims to be the first company in India and Asia to integrate a laser cut and easy-open feature into PLWPP pinch bottom bags. The company's operations are highly vertically integrated, encompassing PP granule processing, tape extrusion, weaving, printing, lamination, and final bag stitching. The company boasts a highly diversified and extensive customer base, serving over 1,950 clients across 71 countries. Their packaging solutions cater to multiple end-user industries, including grains and pulses (rice, dal, lentils), flour and spices, animal and pet foods, agrochemicals, cement, building materials, and fertilizers. The company’s top clients feature renowned domestic and international brands such as Cargill Inc., Sacos Y Empaques Internacionales S.A. de C.V., Baba Agro Food Limited, Drools Pet Food Private Limited, Repi Soap and Detergent PLC, and KRBL Limited. Notably, the company derives a significant portion of its revenue from exports, which contributed 56.15% in FY24, 56.06% in FY25, and 56.30% in FY26. Knack Packaging's manufacturing operations are spread across four facilities (Unit-1, Unit-2, Unit-3, and Unit-4) situated in Kadi, Mehsana, Gujarat. These facilities collectively span a net land area of over 1.23 million square feet and are equipped with advanced machinery and an in-house printing setup holding over 73,000 printing cylinders. The company has demonstrated strong and consistent production capabilities to meet both domestic and international demand. For the financial year ended March 31, 2026, the aggregate installed capacity for Printed and Laminated Woven Polypropylene was 55,800 Metric Tonnes (MT), with an effective installed capacity of 43,300 MT. During the same period, the actual production achieved was 35,344 MT, translating to a healthy capacity utilization rate of 81.63%. Previous years also saw robust utilization rates of 85.98% in FY25 and 88.65% in FY24. As per financial performance, Knack Packaging Limited has posted total income/net profits of Rs 659.01 Cr / Rs 45.98 Cr (FY24), Rs 747.38 Cr / 73.81 Cr (FY25) and Rs 843.77 Cr / 92.72 Cr (upto Q3 FY26). So as per previous financials data, company has shown steady growth, but debt increased three times from Rs 368.18 Cr in FY23 to Rs 1,303.21 Cr as of 9M FY26. Net Cash from Operating Activities collapsed from a positive Rs 610.89 Crores in FY23 to a negative Rs (92.00) Crores in FY25, and worsened to a bleeding negative Rs (387.70) Crores in 9M FY26. The company is recording accounting profits but burning immense cash. Company has an average EPS of Rs 7.86 and average RoNW of 38.08% for last three fiscals. Issue is priced at a P/BV of 2.77 as per NAV of Rs 30.82/- as on 31.03.26. If we attribute latest earnings of FY24, FY25 and FY26 on equity post issue, then asking price is at a P/E of around 45.24, 28.18 and 22.43 respectively. As per RHP, comparison between listed peers are shown in the above market. On BRLM's front, Systematix Corporate Services Limited, IDBI Capital Markets & Securities Limited, Pantomath Capital Advisors Private Limited are associated with this IPO, and has handled 20 IPOs in last three fiscal years. ( As on 24.06.26 ) As per financials, Turtlemint Fintech Solutions Limited has shown average results, RoNW is (47.29)% and P/E is NA, NA, NA and NA respectively as per FY24, FY25, TTM and annualised FY26 earnings. So issue looks fully priced, but negative cash flow, increase in debt and inventory are indicating risks. This IPO purely looks exit strategy for existing investors and no benefit to the company. Company is the leading non-ferrous metal recycler in terms of installed capacity, which is highly competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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