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

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

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Yellowstone Equity

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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.

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

<ul>
<li>Despite early monsoon resulting in weak demand, RPPL posted a decent revenue growth of 4.9% YoY in Q1FY26. This was led by 45% YoY growth in exports.</li>
<li>RPPL's injection molding segment has been doing exceptionally well with revenue doubling in Q1FY26. RPPL's Olive Ecopak JV has started slow but holds significant potential.</li>
<li>At current valuation, RPPL's stock offers an attractive entry point with potential to more than triple over a holding period of three years. </li>
</ul>


Despite early monsoon resulting in weak demand, RPPL posted a decent revenue growth of 4.9% YoY in Q1FY26. This was led by 45% YoY growth in exports.
RPPL's injection molding segment has been doing exceptionally well with revenue doubling in Q1FY26. RPPL's Olive Ecopak JV has started slow but holds significant potential.
At current valuation, RPPL's stock offers an attractive entry point with potential to more than triple over a holding period of three years. 


Rajshree Polypack (RPPL): Decent Q1FY26, Considering Weak Demand Environment

<ul>
<li>
<a href="https://www.smartkarma.com/entities/rajshree-polypack-ltd" target="_blank" data-smartkarma-citation="entities:33486:1" rel="noopener">Rajshree Polypack ("RPPL")</a> reported excellent Q4FY25 led by strong growth in injection molding and exports revenue. Exports quarterly revenue grew to INR 20cr vs INR 10cr+ run-rate earlier.</li>
<li>Injection molding segment has grown well. It clocked INR 15cr+ in revenue in Q4FY25 vs INR 8cr YoY. For FY25, revenue from injection molding more than doubled to INR 40cr+.</li>
<li>Led by growing mix of high-value segments like injection molding, barrier packaging and exports in Q4FY25, EBITDA margin improved to 13.7% vs 13.5% YoY and 12.5% QoQ.</li>
</ul>



Rajshree Polypack ("RPPL") reported excellent Q4FY25 led by strong growth in injection molding and exports revenue. Exports quarterly revenue grew to INR 20cr vs INR 10cr+ run-rate earlier.
Injection molding segment has grown well. It clocked INR 15cr+ in revenue in Q4FY25 vs INR 8cr YoY. For FY25, revenue from injection molding more than doubled to INR 40cr+.
Led by growing mix of high-value segments like injection molding, barrier packaging and exports in Q4FY25, EBITDA margin improved to 13.7% vs 13.5% YoY and 12.5% QoQ.


RPPL: Strong Q4FY25 | Next 2Y Look Promising

<ul>
<li>Earlier this month, RPPL announced a new factory to expand its thermoforming and extrusion capacity by 1250 MTPA and 1600 MTPA, respectively. This will come on-stream within a month.</li>
<li>RPPL reported a weak Q3FY25 due to adverse fluctuation in raw material prices as well as seasonal impact. Q3 tends to be a weak quarter seasonally.</li>
<li>RPPL's capacity expansion has been leading to upfront expenses. The new Olive Ecopak JV also reported losses, share of which was INR -2.6cr in Q3FY25.</li>
</ul>


Earlier this month, RPPL announced a new factory to expand its thermoforming and extrusion capacity by 1250 MTPA and 1600 MTPA, respectively. This will come on-stream within a month.
RPPL reported a weak Q3FY25 due to adverse fluctuation in raw material prices as well as seasonal impact. Q3 tends to be a weak quarter seasonally.
RPPL's capacity expansion has been leading to upfront expenses. The new Olive Ecopak JV also reported losses, share of which was INR -2.6cr in Q3FY25.


RPPL: Weak Q3FY25, However Medium-Term Outlook Is Strong

<ul>
<li>Q2FY25 performance was strong led by volume growth and margin improvement. Q2FY25 revenue grew 31% YoY and 12%+ QoQ. Volumes grew 24.6% YoY (9.5% QoQ) led by strong demand environment.</li>
<li>Margins have now normalized as raw material prices have stabilized. EBITDA margin improved to 14.9% vs 14.7% QoQ and 13.5% YoY. PAT margin grew to 5.8% vs 3.2% YoY.</li>
<li>RPPL's value-added segments like barrier packaging and injection molding are growing rapidly. Exports are also steady at INR 10cr+ per quarter and have a strong order pipeline.</li>
</ul>


Q2FY25 performance was strong led by volume growth and margin improvement. Q2FY25 revenue grew 31% YoY and 12%+ QoQ. Volumes grew 24.6% YoY (9.5% QoQ) led by strong demand environment.
Margins have now normalized as raw material prices have stabilized. EBITDA margin improved to 14.9% vs 14.7% QoQ and 13.5% YoY. PAT margin grew to 5.8% vs 3.2% YoY.
RPPL's value-added segments like barrier packaging and injection molding are growing rapidly. Exports are also steady at INR 10cr+ per quarter and have a strong order pipeline.


RPPL: Strong Q2 Led by Volume Growth and Margin Normalization

<ul>
<li>RPPL reported a strong Q1FY25 led by margin improvement. EBITDA margin rose to 14.7% vs 13.5% QoQ and 12.0% YoY. Stability in raw material pricing and operating efficiencies helped margins. </li>
<li>While growth in overall revenues was average at 8.3% YoY, growth in high-margin packaging products segment, which contributes 80% of total revenues, was strong at 16% YoY. </li>
<li>Exports at INR 9.2cr were below the INR 10cr+ run-rate, however, the growth momentum is intact. RPPL is in process of finalizing an export contract with a major global distributor.</li>
</ul>


RPPL reported a strong Q1FY25 led by margin improvement. EBITDA margin rose to 14.7% vs 13.5% QoQ and 12.0% YoY. Stability in raw material pricing and operating efficiencies helped margins. 
While growth in overall revenues was average at 8.3% YoY, growth in high-margin packaging products segment, which contributes 80% of total revenues, was strong at 16% YoY. 
Exports at INR 9.2cr were below the INR 10cr+ run-rate, however, the growth momentum is intact. RPPL is in process of finalizing an export contract with a major global distributor.


RPPL: Scaling Up Well With Consistent Execution

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)

Rajshree Polypack (RPPL): Decent Q1FY26, Considering Weak Demand Environment

RPPL reported a decent Q1FY26 despite weak demand environment, led by strong exports and exceptionally strong growth in the injection molding...

Ankit Agrawal, CFA

RPPL: Strong Q4FY25 | Next 2Y Look Promising

RPPL has added value-added categories like barrier packaging and injection molding that are ripe to scale up well. Its new venture into eco...

Ankit Agrawal, CFA

RPPL: Weak Q3FY25, However Medium-Term Outlook Is Strong

RPPL reported a weak Q3FY25 due to seasonality and volatility in raw material prices. It has been also in investing mode, which has upfronted...

Ankit Agrawal, CFA

RPPL: Strong Q2 Led by Volume Growth and Margin Normalization

RPPL reported a strong Q2 led by robust volume growth. Margins have normalized with stable raw material prices. Value-added segments - barrier...

Ankit Agrawal, CFA

RPPL: Scaling Up Well With Consistent Execution

RPPL is consistently scaling up its capacities while also introducing new value-added products and technology. It is executing well to sustain its...

Ankit Agrawal, CFA

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