Indian Stocks News - Your Guide To Stocks, Investments and Money - Homepage
 
Powered By
Home Stocks To Buy Stock Tips Stock Trading Investment Growth Stock Penny Stocks To Buy   Mutual Funds
| Share

Saturday, August 1, 2009

Small Cap Stock - Raj Packaging Industries

One of my readers Mr. Ramesh Nevada asked my opinion on this small cap stock. I found his initial information interesting about this company. Raj packaging has dividend yield of almost 8% at CMP though it is very very small company with only 5 Crores market cap at present share price. Here is my stock analysis.

Small Cap Stock - Raj Packaging IndustriesCompany has a steady growth rate for past few years and it is growing slowly. The company is involved in business of providing packaging films mainly for food industry which seems to be a steady business.

Small Cap Stock - Raj Packaging Industries

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.

Small Cap Stock - Raj Packaging Industries-Stock chart
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.

2 comments:

  1. 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

    ReplyDelete
  2. After reading your analysis on Raj Packaging, could buy the shares of the company which I unheard about it earlier. Thanks!

    With 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?

    ReplyDelete

Leave Your Opinion Here... (All comments are manually moderated)