📌 At a Glance

A BOPP tape and packaging manufacturer with 23% ROCE, steady profits, and a ₹51 Cr market cap. Revenue growth is slowing, but margins are stable and the dividend yield is surprisingly solid. Cheap? Maybe. Boring? Definitely not.

1. 🧨 Intro: From BOPP to Big Dreams

India loves packaging. Whether it’s 3 layers for a single Parle-G biscuit or 4 kg of bubble wrap for a lipstick, we take our packaging very seriously.
Enter D.K. Enterprises Global Ltd – manufacturer of BOPP tapes, laminates, corrugated boxes and sleeve rolls – all essential to making Amazon and Flipkart survive daily delivery wars.

SME stock? ✅
Low float? ✅
Insane volatility? ✅
But is it investable? Let’s find out.

2. 🏭 WTF Do They Even Do? (Business Model)

DK Enterprises is basically a factory that churns out:

• Self-Adhesive BOPP Tapes (used in cartons and packaging lines)
• Laminated Rolls (used in pouches, labels, FMCG packs)
• Corrugated Boxes & Sleeve Rolls
• Operates out of 3 manufacturing plants in Haryana, Gujarat & Himachal
• Certified with ISO 9001 & ISO 14001 = quality + environmental compliance 🧼♻️
• Supplies to packaging vendors, FMCG companies, and industrial clients

So not your sexy AI startup — but an actual product business with sticky margins.

3. 📈 Financials – Profit, Margins, ROE, Growth

🧠 Key Takeaways:

• Revenue CAGR (FY21–FY25): ~24%
• Profit CAGR: ~30%
• Margins slightly improving post-COVID era
• EPS in FY25: ₹7.55 → At CMP ₹68, that’s a P/E of ~9x

4. 🧮 Valuation – Is It Cheap, Meh, or Crack?

Let’s check relative sanity:

• Stock P/E: 9
• ROCE: 23.9%
• ROE: 21.3%
• Dividend Yield: 2.94% (in SME? hello!)
• Book Value: ₹37.8 → Price/Book ~1.8x

🔍 Fair Value Range (Valuation Logic)

Let’s assume FY26 EPS ~₹8.7 (15% growth), and apply:

• Conservative P/E (8x): ₹70
• Optimistic P/E (12x): ₹104
• Very Optimistic P/E (15x): ₹130

🎯 FV Range: ₹70 – ₹104 (with ₹130 as upside tail scenario)

So… current price ₹68 is close to fair value, but not screaming “undervalued.”

5. 🍿 What’s Cooking – News, Triggers, Drama

• ✅ No deviation in IPO fund utilization (June 2025 update)
• ✅ Promoter holding stable at 73.3%
• 🧾 FY25 results approved with reappointment of key directors
• 🧘‍♂️ Zero pledging. Zero drama. Almost boringly clean.

Triggers could include:

• Capex expansion in Gujarat
• Entry into export markets
• Higher-margin laminated FMCG contracts

6. 🏗️ Balance Sheet – How Much Debt, How Many Dreams?

• D/E ratio < 0.5 → Healthy
• Assets: ₹57 Cr total
• No scary working capital issues
• Cash flows stable; no funny business

7. 💸 Cash Flow – Sab Number Game Hai

• Not cash-gushing, but not a cash trap either.
• Steady internal accruals funding ops & dividend.

8. 🧪 Ratios – Sexy or Stressy?

Verdict: Very SME Efficient. These are “grown-up” ratios.

9. 💥 P&L Breakdown – Show Me the Money

• Sales grew from ₹45 Cr (FY20) to ₹155 Cr (FY25)
• Profit tripled from ₹2 Cr to ₹6 Cr
• Margins are thin (~6% OPM), but stable
• Growth slowing slightly post-FY24 → worth watching

10. ⚔️ Peer Comparison – Who Else in the Game?

💡 DK is the SME underdog. High ROCE, low P/E, but much smaller scale and thinner margins.

11. 🧬 Misc – Promoters, Shareholding, Goodies

• Promoter Holding: 73.3% (solid 💪)
• DII stake: 4.58% – rare in SMEs!
• Retail float is small → makes it volatile
• ~350 shareholders. Still illiquid-ish.

🧑‍⚖️ EduInvesting Verdict™

✅ Profitable
✅ Growing
✅ Debt light
✅ Dividends in SME = 🤯
✅ Cheap valuation

But…
⚠️ Growth slowing
⚠️ Margins remain thin
⚠️ Volatility risk due to low float

🎯 FV Range: ₹70 – ₹104
➡️ Currently priced at ₹68 = Fair, not fire-sale

This tape may not stick like Fevicol, but it ain’t peeling off either.

✍️ Written by Prashant | 📅 9 July 2025
Tags: SME IPO, BOPP Tapes, Packaging Stocks, D.K. Enterprises Global, Dividend Yield, SME Stocks India, EduInvesting SME Series