Kanpur Plastipa. (KANPRPLA)

FairStock Score: 54/100 — MIXED

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Strong growth: sales up 19.16% and profit up 23.03%
• Reasonable valuation: P/E 11.79 with PEG ratio of 0.56
• Healthy profitability: ROE 14.00% and ROCE 11.99%
• High promoter holding of 67.63% aligns management with minority shareholders
• Piotroski F-Score of 7/9 indicates solid financial fundamentals

Concerns

• Thin net margin of about 4.7% in the latest quarter, leaving little cushion for downturns
• Low dividend yield of 0.51%, so returns depend entirely on stock price appreciation
• P/B of 2.55 offers limited margin of safety versus net asset value
• Packaging is a competitive, low-moat industry exposed to raw material price cycles

AI Analysis

Let me look at Kanpur Plastipa as I would any business. It earns a decent 14% return on equity, while its return on capital employed is just under 12%. That tells me the management is putting capital to work reasonably well, though not spectacularly. The balance sheet looks manageable with debt-equity at 0.56, so I am not losing sleep over leverage. But I must ask: what is the moat? Packaging is a competitive, low-differentiation business. There is no strong brand or pricing power visible here. The valuation, however, catches my eye. At a P/E of 11.79 and profit growth of 23%, the PEG is 0.56. That suggests the market is pricing in very little growth, or is skeptical about its sustainability. For a growing business, this is an interesting gap. The Piotroski score of 7 out of 9 also indicates solid financial health across profitability, leverage, and efficiency. Promoters holding 67.63% aligns their interests with mine, which is always reassuring. But I must stay cautious. The dividend yield is a mere 0.51%, so the only return is capital appreciation. The latest quarter shows net profit of ₹9 crore on sales of ₹192 crore, a margin of only about 4.7%. That is thin. In a cyclical industry, such margins can compress quickly. Book value is ₹76.82, and the stock trades at 2.55 times book. That is not a Graham-style asset bargain. In short, Kanpur Plastipa appears to be a reasonably-run, growing packaging company offered at a fair price, but without a wide moat. I would need to see sustained growth and disciplined capital allocation before committing a large sum. For a retail investor, it deserves study but not blind faith.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer