1. At a Glance – Plastic, Profits & Paranoia
Rajshree Polypack is that stock which looks cheap enough to tempt value hunters and ugly enough to scare growth investors. Market cap of ~₹135 Cr, stock price around ₹18, trading at 0.75× book value and P/E of ~9.3, while the packaging industry median P/E chills at ~18. On paper, this looks like a clearance sale.
But zoom in. FY25 sales stand at ₹330 Cr, PAT at ₹14.5 Cr, operating margins around 12%, ROCE ~11%, ROE ~9%. Nothing explosive, nothing disastrous. The stock is down ~45% YoY, promoters have quietly reduced stake over three years, debt has ballooned to ₹120 Cr, and contingent liabilities sit at an eye-watering ₹122 Cr.
Yet, capacity is expanding, order wins keep trickling in, exports are rising, and the company is experimenting with eco-friendly packaging via Olive Ecopak JV. Is this a boring plastic box maker… or a misunderstood packaging platform quietly sweating assets?
Before you judge, let’s rip open the plastic wrap.
2. Introduction – The “Dabba” Business Nobody Brags About
Plastic packaging is the least glamorous corner of manufacturing. Nobody flexes yoghurt cups at cocktail parties. But this sector quietly rides India’s FMCG, dairy, QSR, and ready-to-eat boom. Every Swiggy order, every Amul tub, every ice-cream stick needs packaging that is cheap, compliant, leak-proof, and delivered yesterday.
Rajshree Polypack has positioned itself as a mid-sized, multi-process packaging player: extrusion, thermoforming, injection moulding, rigid sheets, barrier packaging. It doesn’t bet on a single customer or single SKU. Instead, it survives on volume, repeat orders, and operational discipline.
This is not a brand business. This is not pricing power nirvana. This is a “run the machines hard and don’t screw up quality” business. And Rajshree has been running those machines harder every year—sometimes funded by debt, sometimes by patience-testing equity dilution.
The question isn’t whether packaging demand exists. It does. The real question is: can
Rajshree earn respectable returns without choking on working capital and interest costs?
3. Business Model – WTF Do They Even Do?
Imagine you are a large FMCG or dairy brand. You don’t want to think about cups, trays, lids, or containers. You want someone else to obsess over that mess. Rajshree is that someone.
What they sell:
- Barrier Packaging – keeps oxygen, moisture, and contamination out. Vital for yoghurt, dairy, RTE foods.
- Rigid Packaging – tubs, containers, cups that don’t collapse like investor confidence in bull markets.
- Plastic Rigid Sheets – used in form-fill-seal lines.
- Injection Moulding – precision components, lids, specialised food trays.
Who they sell to:
Cafe Coffee Day, Unilever, Swiggy, Nestle, Amul, Havmor, Milky Mist, Mother Dairy, Nissin, Lulu Mall… basically brands you already consume without noticing Rajshree’s existence.
Revenue mix FY25:
- Packaging products: ~62%
- Sheet sales: ~19%
- Injection moulding: ~18%
- Others: negligible
This is a B2B institutional-heavy model (82.6% institutional customers). Low drama, low bargaining power, but sticky once approved. Lose one client, margins cry. Win one big client, volumes explode but margins still don’t party.
4. Financials Overview – Quarterly Reality Check
Quarterly Performance Table (₹ Cr)
| Metric | Latest Qtr (Dec FY25) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 71.6 | 72.7 | 86.4 | -1.5% | -17.1% |
| EBITDA | 8.7 | 7.7 | 10.9 | 12.7% | -20.2% |
| PAT | 2.2 | 1.7 | 4.6 | 31.7% | -52.2% |
| EPS (₹) | 0.30 | 0.23 | 0.62 | 30.4% | -51.6% |
Margins stayed stable, but volumes clearly wobble quarter to quarter. This
