

Company's promoters shareholding is healthy @ 44%. The stock dividend from Rak packaging is 10% on face value, the dividend yield comes at 7.7%. It is undoubtedly good dividend yield.
If you look at the stock chart in history, it shows you the cyclical nature of stock. It has never witnessed big growth in earnings and never posted the big numbers of growth. This shows the limitations of the business from growth perspectives.

I read a news about plans of expansion in last year around month of February but did not read if it has been completed. Definitely if this is completed and if it could increase productions for the company, it would be beneficiary for company growth and ultimately for shareholders. May be this development would provide the boost in earnings and business.
Market Cap 5.36
EPS (TTM) 2.00
** P/E 6.75
P/C 4.64
* Book Value 15.46
* Price/Book 0.87
Div(%) 10.00
Div Yield(%) 7.41
Market Lot 1.00
Face Value 10.00
Industry P/E 4.02
One may buy stocks of this company for steady dividend income. But you will need to track the stock and company at regular intervals. I would recommend to buy shares at around Rs. 10 - 11 levels. The business and the stock is not a high growth stock and so do not expect exponential growth in your investments. It is a slow growth stock with good dividends, but lacks any lucrative business story.
Your blog is excellent especially you pick unusual and unheard of stock like Raj pakaging and analyse it. What is your opinion on Zenith Fibres and Voith Paper fabrics? To me they look like Raj packaging. can I add more exposures? Pl. highlight. thanks in advance
ReplyDeleteAfter reading your analysis on Raj Packaging, could buy the shares of the company which I unheard about it earlier. Thanks!
ReplyDeleteWith the parameters you mentioned for Raj, I looked at other company Karur KCP Packaging. The company has a steady growth, now available at
P/B 0.58.
PE 5.49
EPS 9.4
What is your opinion?