TCPL Packaging Ltd. -- Statistical Facts & Figures -- Views Invited

(ragsingh0305) #103

Hi all,

Can we compile the list of all relevant questions (apart from what I mentioned in the above post) which others have and then can narrow down by deliberating answering those questions, which our member know.
Once we finalize the list of pertinent questions, then we can ask them with the management.
I am not sure how to reach out to this company’s management team, since I guess they don’t have quarterly earnings call??

Let me know if this sounds okay to you guys?

(Yogesh Sane) #104

Even though I like the business, I never invested in the business because I was not comfortable with the valuation when I first discovered the business about 2-3 years ago.

Between 2014 and 2016, EBITDA margins remained flat at around 16-17%, net margin almost doubled from 3% to 6% and stock price followed.

Source: Capitaline

Most of the change in net margin was simply because of change in depreciation

Source: Capitaline

which has reversed over last 2 years causing net margins to decline. I was actually surprised to see EBITDA margins decline so that’s an additional risk. I think market price does not fully reflect the risks so will stay away for some time.

(Rudra Chowdhury) #105

Most important metrics to focus for this company is cash flows, as due to nature of converter business it would remain depreciation heavy. For the first time in recent years, Capital WIP has moved higher while reducing long term debt (FY18 end), which signals something very positive.

Overall the RM pricing in paperboard remains a cause of concern and might need a few more quarters to stabilize.