Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Creating Wealth through Alpha and Compounding

Yellowstone Equity

Providing unbiased and independent research on Indian equities to global institutions and individual investors


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Regulatory Disclosure: 
Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Research Analyst Contact Details:
Address: A-412, Shilp Aaron, Sindhu Bhavan Road, Ahmedabad, Gujarat - 380059
Email: services@yellowstoneequity.com
Mobile: +91-7575817289

Compliance/Grievance Officer:
Name: Ankit Agrawal
Email: services@yellowstoneequity.com
Mobile: +91-7575817289
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Equity Bottom-Up

<ul>
<li>Q1FY23 earnings came in strong for RPPL led by robust demand and margin expansion. Volumes grew by 23.6% YoY and 24.5% QoQ.</li>
<li>Operational EBITDA per kg grew by 25%+ YoY and 36%+ QoQ to INR 37.5+ per kg as the price rise in raw materials was passed on.</li>
<li>RPPL has guided for a strong FY23. It can clock a volume of 10500+ MT and EBITDA of INR 35+ per kg, barring any adverse volatility in raw material prices.</li>
</ul>


Q1FY23 earnings came in strong for RPPL led by robust demand and margin expansion. Volumes grew by 23.6% YoY and 24.5% QoQ.
Operational EBITDA per kg grew by 25%+ YoY and 36%+ QoQ to INR 37.5+ per kg as the price rise in raw materials was passed on.
RPPL has guided for a strong FY23. It can clock a volume of 10500+ MT and EBITDA of INR 35+ per kg, barring any adverse volatility in raw material prices.


RPPL: Strong Earnings Led by Robust Demand and Margin Expansion

<ul>
<li>RPPL posted a decent FY22 despite significant rise in the raw material costs. Sales volume grew 30%+ and EBITDA per kg improved by 11%.</li>
<li>FY23 is likely to be robust for RPPL. Revenue growth is likely to be strong at 20%+. Margins are guided to expand to 15%+ level from current 13.5%.</li>
<li>RPPL is consistently improving the mix of value-added products like Barrier Packaging and Tube Laminates. Contribution from Barrier Packaging is likely to grow to 10-15% in FY23 from 5% currently.</li>
</ul>


RPPL posted a decent FY22 despite significant rise in the raw material costs. Sales volume grew 30%+ and EBITDA per kg improved by 11%.
FY23 is likely to be robust for RPPL. Revenue growth is likely to be strong at 20%+. Margins are guided to expand to 15%+ level from current 13.5%.
RPPL is consistently improving the mix of value-added products like Barrier Packaging and Tube Laminates. Contribution from Barrier Packaging is likely to grow to 10-15% in FY23 from 5% currently.


<ul>
<li>RPPL reported decent Q3FY22 earnings as gross margins expanded to 36.9% vs 33.7% QoQ and EBITDA margins expanded to 13.7% vs 13.5% QoQ.</li>
<li>The margin expansion seems to have been led by higher utilization of finished goods and WIP inventory which helped in curtailing adverse impact of volatility in raw material pricing.</li>
<li>The material decline in depreciation and amortization expenses by 13% QoQ is likely due to consolidation of the Unit 1 and Unit 3 facilities.</li>
</ul>


RPPL reported decent Q3FY22 earnings as gross margins expanded to 36.9% vs 33.7% QoQ and EBITDA margins expanded to 13.7% vs 13.5% QoQ.
The margin expansion seems to have been led by higher utilization of finished goods and WIP inventory which helped in curtailing adverse impact of volatility in raw material pricing.
The material decline in depreciation and amortization expenses by 13% QoQ is likely due to consolidation of the Unit 1 and Unit 3 facilities.


Rajshree Polypack (RPPL): Margin Expansion Led The Q3FY22 Earnings Growth

<ul>
<li>This hidden nano-cap, RPPL, that we identified 6 months ago, is up ~55% since then and has now graduated to NSE Main Board from NSE SME exchange.</li>
<li>It also reported strong EBITDA growth (11% HoH, so 20%+ annualized) on the back of commercialization of its new facility, in line with our thesis.</li>
<li>RPPL continues to execute well and has potential to grow its earnings and revenues by 2.5-3x over the next 4-5 years.</li>
</ul>


This hidden nano-cap, RPPL, that we identified 6 months ago, is up ~55% since then and has now graduated to NSE Main Board from NSE SME exchange.
It also reported strong EBITDA growth (11% HoH, so 20%+ annualized) on the back of commercialization of its new facility, in line with our thesis.
RPPL continues to execute well and has potential to grow its earnings and revenues by 2.5-3x over the next 4-5 years.


Rajshree Polypack (RPPL): This Hidden Nanocap Is Now Listed On NSE Main Board

<p><a href="https://www.smartkarma.com/entities/rajshree-polypack-ltd" target="_blank" data-smartkarma-citation="entities:33486:1" rel="noopener">Rajshree Polypack (RAJPPL IN)</a> ["RPPL"] is a small company in the rigid plastic packaging industry. Currently it is listed on the NSE Emerge platform (dedicated platform of NSE for SME companies) and has plans to shift to the main board over time. It is a relatively new IPO with listing in Sep 2018.</p>

Rajshree Polypack (RAJPPL IN) ["RPPL"] is a small company in the rigid plastic packaging industry. Currently it is listed on the NSE Emerge platform (dedicated platform of NSE for SME companies) and has plans to shift to the main board over time. It is a relatively new IPO with listing in Sep 2018.

India's Hidden Nanocaps | Rajshree Polypack: Climbing Up The Value Chain

India

Rajshree Polypack Limited manufactures packaging products. The Company offers coffee cups, trays, lids, plates, bowls, and other containers, as well as plastics rigid sheet. Rajshree Polypack serves dairy, beverages, retail, pharmaceuticals, and electronics industries in India.

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Rajshree Polypack (RAJPPL IN)

RPPL: Strong Earnings Led by Robust Demand and Margin Expansion

RPPL is taking all the right steps to enhance its product offerings to deepen wallet share with existing clients. At current price, an investment...

Ankit Agrawal, CFA

RPPL: Set to Fire on All Cylinders

RPPL is making all the right moves: 1) Growing Volumes 2) Expanding Margins 3) Improving Mix of Value-added Products. FY23 is guided to see 20-25%...

Ankit Agrawal, CFA

Rajshree Polypack (RPPL): Margin Expansion Led The Q3FY22 Earnings Growth

RPPL reported decent Q3FY22 earnings as gross margins expanded to 36.9% vs 33.7% QoQ and EBITDA margins expanded to 13.7% vs 13.5% QoQ. This led to...

Ankit Agrawal, CFA

Rajshree Polypack (RPPL): This Hidden Nanocap Is Now Listed On NSE Main Board

This hidden nanocap, we identified 6 months ago, is up ~55% and has now graduated to NSE Main Board from NSE SME exchange. It continues to execute...

Ankit Agrawal, CFA

India's Hidden Nanocaps | Rajshree Polypack: Climbing Up The Value Chain

Rajshree Polypack is a small player in the large rigid plastic packaging industry. However, through its consistent innovation and growth mindset,...

Ankit Agrawal, CFA

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