Worth peripherals- manufacturer of corrugated boxes

-Pioneers of the corrugated industry
-Abreast with the latest technology that the -Global Corrugated Industry offers
-Long standing relationships, of 25-30 years, with the majority of customers
-Nationally acclaimed for quality and service In-depth technical know-how of the
corrugation industry.

-Growth of Indian economy will increase consumption of goods YoY,
-Increasing demand for corrugated boxes
-Exploring new geographies, customers and product capabilities

Recently the company has completed a huge amount of expansion. The company has also applied for land purchases for more expansion.
Their products include Regular Slotted Containers,Corrugated Box / Trays, Z Sleeve, I/ Honeycomb Partitions etc

Customers include Parle Agro , Hindustan Unilever etc

Mcap of 174 cr. Annual sales of 161 Cr
Trades at a PE of just 9
Around 40 cr cash in hand
Low debt
Promoter holding of 74 %

They also recently entered the baby and adult hygiene industry through their subsidiary Worth Wellness Pvt. Ltd. - Mentioned in AR

Technically , the charts looks strong and the stock has been on an uptrend.Currently taking support at the trend line

Please share your views?

Sources - Annual Report , Trendyline, TradingView
Disclosure : Invested


Recently the company has completed a huge amount of expansion. The company has also applied for land purchases for more expansion

Please share the source.

I probably shouldnt have mentioned that as i read that from a thread on valuepikr itself
SmallCap Hunter : Trying to find the dark horses with triggers - Q&A: Questions & Answers / Portfolio Q&A - ValuePickr Forum

Here is another article mentioning their expansion plans
Worth Peripherals expands further – ThePackagingPortal.com

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I earlier had a position in this company and exited because they are overly dependent on a single set of products (corrugated boxes). They were trying to diversify into the personal wellness segment. However, the project seems to be halted (think temporarily).
Even though the opportunity might be big for a company of this size, It is inherently risky.
During my prior interaction with their CS (extremely good, informative, and kind), they take nearly a month to pass over the RM changes. Due to its small size and limited reserves, Its shock-bearing ability too is limited.
Standing on the sidelines Might take positions if something interesting happens



Any particular reason as to why they are not members of the Western India Corrugated Box Manufacturers Association (WICMA), which was established with the main objectives of promoting trade, commerce and industry connected with corrugated boards and boxes; to promote and advance commercial and technical education of corrugated packaging?

Here is the link to their Member’s Directory: https://wicma.com/membership/members-directory.php

Disc: not invested, researching

Gone through DRHP and picked these risk factors

Company seems to be good and promoters are also seems to be OK

  1. We do not own the land on which our manufacturing facility and registered office are located

Unit I of our manufacturing facility situated at Industrial Area, Pithampur Sector I, Dist, Dhar, Madhya Pradesh is taken on lease from M.P. Audyogik Kendra, Vikas Nigam, Indore, which is valid for a period of 30 years from August 11, 2004. Plot I of Unit II of our manufacturing facility situated at Industrial Growth Centre, Pithampur Sector 3, Dist, Dhar Madhya Pradesh at plot No.157D is taken on lease from M.P. Audyogik Kendra, Vikas Nigam, Indore, which is valid for a period of 30 years from July 01, 2010, Plot II of Unit II situated at. Plot No.157D 1, Industrial Growth Center, Pithampur Sector 3, Dist, Dhar, Madhya Pradesh is taken on lease from M.P. Audyogik Kendra, Vikas Nigam, Indore, which is valid for a period of 30 years from October 4, 2013. Our registered office is taken on rent from our Promoter, Amarveer Kaur Chadha for a period of 11 months from April 28, 2017.

  1. The shortage or non-availability of power facilities may adversely affect our manufacturing processes
    and have an adverse impact on our results of operations and financial condition.

No captive power plants , relying on DG is a big expense and buying power from grid is also very expensive

  1. The shortage or non-availability of water facilities may adversely affect our manufacturing processes
    and have an adverse impact on our results of operations and financial condition.
    Our manufacturing process requires substantial amount of water, particularly for generation of steam.
    Currently, our Company meets its water requirements from bore wells and tube wells, installed in the
    manufacturing facilities. We have not made any alternate arrangements for supply of water for our
    manufacturing facilities. Non availability of water may expose us to risk of production stoppage which
    would affect our financial condition

Make sense to buy around half the book value


I have written mail to CS and got below response las month

Please find herewith our response for your queries:

1- Can we have a conference call at-least 2 times in a year just to know about the business in detail.

[Worth]: We publish regular updates on our website & NSE website. However, we can look into the same in the future.

2- Do we have any plan for further expansion with existing capacity?

[Worth]: We are in the process of planning further capacity expansions. Further updates will be shared via public forum.

3- Can we also have partnership/tie up with major companies like Reliance Jiomart, Amazon etc. for corrugated boxes supply. I feel we have the latest technology and excellent capability team to attract all kinds of customers.

[Worth]: Yes, definitely. We are already working with Major MNCs and we strive to serve more prestigious customers.

4- It’s rare to get an update/visibility about Worth Peripherals among domestic/foreign investors, do you have plans to have investors meeting to bring new investors to our company for further expansion.

[Worth]: Information about the company is frequently updated on the NSE website and our website.

  1. I am happy to get a good dividend, can we focus on growth/expansion instead of paying dividend to shareholders which will be beneficial in the long run.

[Worth]: Dividends majorly depend on the performance of the company and further expansion plans.

  1. I am not sure how we are procuring our raw materials (Kraft Paper) to manufacture corrugated boxes. Is there any optimal way to reduce cost either direct import or any other method - You and Your team are subject matter experts but i thought of just sharing it.

[Worth]: The company always strives for improving efficiencies and keeping the costs in check.

I would also like to understand the impact on Raw Material Price Hike on Kraft Paper.

[Worth]: Kraft paper has been bullish worldwide ever since the onset of Covid Pandemic. Due to various reasons such as shortage of raw material, rise in container costs, rising fuel costs and other supply chain disruptions, etc.

Disclosure: holding from IPO price


Is there any competitive advantage with the company, apart from its long standing relationships with big corps ??

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Few follow-ups if you can ask them or if you already know answers

Do they have any captive power plant ?
Do they any ZLD (Zero Liquid Discharge) process in place ?
Do they have any plans to backward integrate and produce their own Kraft paper ?


Where can we find the customers of this company

Competitive Advantage - Long standing relationshiops with Big Corporates like HUL, Cargil, Parle etcc…Surprised to see big corporate customers who have long standing relationship and also they could pass price increase.

Fully automated plant with latest technology

Only Listed Player in corrugated Industry. Sector is going through lot of -ves for past 2 years mainly because huge increase in Kraft Paper (Raw Material Prices), GST, Power Shortage etc… Still they could report good profit and increased revenue consistently. Their balance sheet is clean. Promoters have waived off their dividend as well to put money back into business. They are not aggressive but very careful.
You can google it, so many corrugated factories have closed due to raw material spike for last 2 years, GST etc…

Though industry is highly fragmented but automated plant with unique technology is very less otherwise why should big corporates have chosen worth as long term partner.

Demand side is only +ve. I have got update from company today that they kept diaper manufacturing project on hold




They have their own fleet to supply as per customer needs.
They are also in the process of expansion.


  • There is no captive power plant
  • There is no backward integration to produce their own kraft paper
  • Management is not aggressive to explore new regions

I am holding decent lots since IPO Price. Good margin of safety. Will watch closely.


Is it on & above of 2020-21 capex ?
And also did management mention any plan to use diaper plant for corrugated boxes or will those assets stay un-utilized on balance sheet ?

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CFO resigned last month. Any particular reason or information over that ?

Nothing major,

Just Next-generation management taking control of the company now. (Positive)

“The active involvement of my son, Jayvir, who represents the next generation of the family in the business, further accelerates the company’s growth – he is overseeing all the expansion plans in his capacity as a Director.”


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Co. Announces dividend of 1 Rs per share.

Result seems to be good. OPM margin has increased compared to previous qtr. Please remember this is extremely tough time for corrugated sector due to huge cost in Kraft Paper / Fuel etc… I was expecting bad result but still they could pass prices to customer. They were never impacted durign covid time as well. Cash flow is good. 1 Rupee dividend is good (even LIC gives 1.2 rs dividend). I am looking forward to see annual report + Capex Plan. Disclosure: Holding it from lower levels.

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This is on top of 2020-21 capex. I don’t have clear update on diaper plant? I guess this is very early stage and on hold as well.

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