Systematix's research report on Huhtamaki PPL

[Rajesh Desai]

Systematix's research report on Huhtamaki PPL   Consolidated revenue declined by 1% yoy at Rs 5.2bn, due to higher realisations led by increase in RM prices, standalone revenue stood flat yoy at Rs 2.9bn, while Webtech and Positive Packaging’s (PPIL) revenue also stood flat yoy at Rs2.4bn. Overall volume increased by 5% yoy. Outlook We estimate HPPL’s revenue and net profit to post a CAGR of 12/23% during CY16- 18e. In the long term, we expect the company to be a larger player in India’s flexible packaging industry, due to its scale and leadership position, strong client base and parent back-up. We revise the target price to Rs278 (earlier Rs309), valued at 17x CY18e earnings, and maintain an Accumulate rating.
 

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CA. Rajesh Desai