Pakka Limited zooms 20% and hits the upper circuit
The Shares of the company have generated an impressive 330% return in the last three years.*
Pakka Limited, a prominent player providing sustainable packaging solutions for food transportation, packaging, and services, witnessed a significant surge in its shares today.
The stock opened trading at Rs 220.95 per share, reflecting a moderate 1.6% increase compared to the previous day’s closing price of Rs 217.45 per share on the BSE. As of writing this article, the stock is trading at Rs 260.90 per share, marking an impressive gain of 19.99% from its previous closing price. It reached the upper circuit price limit of 20%, indicating strong demand, with no sellers willing to part with their shares.
Additionally, there was a significant uptick in the trading volumes of the company’s stock today, which is 7.20 times higher than its average daily volumes.
The current market capitalization of the company stands at Rs 1,021.90 crore, and the stock has exhibited exceptional performance in recent periods, delivering an impressive multibagger return of 135% over the past year.
Pakka Limited, formerly known as Yash Pakka Limited, is an India-based company specializing in sustainable packaging materials. The company provides eco-friendly packaging solutions for food transportation, packaging, and service.
Its product range includes food carry materials, moulded food service ware, flexible packaging, and agricultural pulp. The food carry materials are used for McDonald’s takeaway, food grocery bags, bakery bags, and Myntra e-commerce bags. CHUK, one of their products, is made from agricultural residues and is microwaveable, freezable, and oven-safe. Speciality papers, such as greaseproof, glassine, release base, parchment, tissues, and moulded products, are produced from their wet lap pulp. The materials for carry bags are created from locally sourced agricultural residue.
In the June quarter of FY24, the company witnessed a substantial YoY increase in its revenue from operations, surging from Rs 87 crore to Rs 106 crore, marking a 22% growth. The company reported an operating profit of Rs 26 crore, compared to Rs 20 crore in the corresponding quarter of the previous year. The operating profit margin stood at 24% during the June quarter.
Meanwhile, the company’s net profit for the quarter amounted to Rs 16 crore, a significant improvement compared to the profit of Rs 11 crore in the corresponding quarter of the previous year. In the last quarter of FY23, the company reported a net profit of Rs 12 crore. The ROCE (Return on Capital Employed) and ROE (Return on Equity) are 28.5% and 27.2%, respectively. The company’s shares are trading at a P/E (Price-to-Earnings) ratio of 18.3 times in the market.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.