Surged over 600% in 1 year, BSE-listed multibagger stock to trade on NSE soon

A small-cap company with a market cap of ₹301 crore in the packaging industry is GKP Printing & Packaging Ltd. The industries served by G.K.P Printing & Packaging Ltd (GKPL) include garment exports, steel utensils, playing cards, liquor, toys, pharmaceuticals, printers, engineering, confectionery, and FMCG. One of the most prestigious brands in the packaging industry, G.K.P Printing & Packaging Ltd. is also one of India's top producers and exporters of cardboard boxes, corrugated boxes, display boxes, mailer boxes, labels, stickers, tags, inserts & leaflets, mono boxes, and other products. According to the company's website, it also trades kraft paper, duplex paper, and low-density plastic. 

Additionally, it recently purchased 43,234 square feet of land in Vapi, Gujarat, for the relocation of its prevailing production facilities and the development of its operations. GKPL is presently generating about 200 MT out of a 300 MT monthly installed capability. The Vasai-based GKPL factory comprises 20,000 square feet of infrastructure, including two fully operational, cutting-edge factories that include the largest punching machine in Mumbai and Thane. Tata Consultancy Services, Spectra International, Naaptol, ShopCJ, SM Foods, Almats Branding Solutions, Rediff.com, and Spectra International Limited are just a few of the companies with which the firm is affiliated.

On 6th July 2022, the company informed BSE that its Board of Directors has considered making an application for direct listing of the Company at the main Board of the NSE platform and to authorize any of the Director / Company Secretary of the Company to sign and execute all necessary documents and do all things as may be required to make application for Direct Listing of the Company at the Main Board of the NSE Platform.

On the BSE, the stock closed today at ₹205.70 level, up by 1.26% from its previous close of ₹203.15. The shares of GKPL have gained 677.69 per cent in the past year, from a price of ₹26.45 on July 9, 2021, to the current price of ₹205.70 as of July 7, 2022, at 3:43 IST. The stock has gained 42.35 per cent year-to-date (YTD) so far in 2022. The stock has climbed 40.27 per cent over the past six months and 30.23 per cent over the past month. The stock's return over the previous five trading days was 5.22 per cent. At the current price, the stock is trading 4.32 per cent below its 52-week low and 691 per cent above its 52-week low on the BSE, where it reached a 52-week high of ₹215.00 on 07/07/2022 and a 52-week low of ₹25.98 on 07/07/2021. 

The company is virtually debt-free, which may be good news for the stock. Additionally, the stock made a positive breakout of the resistance level on Thursday. Since September 2019, the company's promoter holding of 52.95 per cent and public shareholding of 47.05 per cent have remained steady. The company recorded a poor return on equity (ROE) for the quarter ended March 2022 at 3.60 per cent, which is the lowest since March 2018. The Return on Assets (ROA) is also 2.14 per cent, and it has been declining steadily over the past four years. These two ratios show that the company's earnings are insufficient compared to its shareholders' equity and that it is unable to utilise its assets to their full potential in order to increase profits. The stock is presently selling at a high EV/EBITDA ratio of 127.49 and has a book value per share of Rs. 14.84, meaning that the shares are currently trading at a P/B ratio of 13.86 times its book value, all of which indicate that the stock may be expensive.