One of the packaging stocks engaged in manufacturing and trading specialty papers and moulded (tableware) products. The stock has jumped by 8.76 percent after reporting September quarter results in 2024. The company’s revenue increased by 14.77 percent to Rs. 111.09 crore, and net profit increased by 104.36 percent to Rs. 16.88 crore.
Stock Movement
After announcing its quarterly results, Pakka Limited‘s share has jumped by 8.76% from the previous close of Rs. 292.15. The stock opened at Rs. 311.95 and is currently trading at Rs. 317.75 with a high of Rs. 328 and a low of Rs. 305.60. The market capitalization now stands at approximately Rs. 1,251.38 crore.
Q2 FY25 Result Walkthrough
Coming into the financial analysis of Pakka Limited, the company’s consolidated revenue from operations increased by 5.73 percent YOY, from Rs. 105.07 crore in Q2 FY24 to Rs. 111.09 crore in Q2 FY25, and up by 14.77 percent QoQ from Rs. 96.79 crore in Q1 FY25.
Pakka Limited’s revenue mainly comes from paper and pulp by 88 percent, which is Rs. 101.27 crores, and moulded products by 12 percent, which is Rs. 13.81 crore in Q2 FY25
In Q2 FY25, Pakka Limited’s consolidated net profit increased by 52.21% YOY, reaching Rs. 16.88 crore compared to Rs. 11.09 crore during the same period last year. As compared to Q1 FY25, the net profit has increased by 104.36 percent, from Rs. 8.56 crore.
The basic earnings per share of the company increased by 96.79% and stood at Rs 4.29 as against Rs 2.18 recorded in the previous quarter FY25.
In terms of return ratios, Pakka Limited’s share ROE and ROCE are currently at 20.2 percent and 21.2 percent, respectively. Pakka Limited has a debt-to-equity ratio of 0.48x.
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Shareholding Pattern
In September 2024, Pakka Limited had a majority stake held by the promoters at 47.49 percent, foreign institutional investors at 0.37 percent, domestic institutional investors at 0.37 percent, and the public at 51.77 percent.
Company Overview
Pakka Limited was founded in 1981 and was formerly known as Yash Pakka Limited. The company is a leader in regenerative packaging solutions based in India. The company transitioned from a pulp and paper manufacturer to a sustainable packaging innovator in 2019.
Pakka specializes in creating compostable materials from agricultural residues, particularly sugarcane bagasse. The company emphasizes sustainability by generating 100% biomass-based energy and sourcing raw materials locally. The company’s product range includes food carry materials, molded food serviceware, and flexible packaging, serving clients like McDonald’s and Myntra.
Written By – Nikhil Naik
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