Best Packaging Stocks in India: Which Stock Has the Largest Market-Cap?

Top Packaging Companies in India: An Overview

Over the years, we are seeing the Indian packaging industry expand its wing and substantially grow in size. Also, the increasing awareness of getting clean water, safe food, and pharmaceuticals aggressively will make changes to this industry, and it is also said to be a driving force in the Indian packaging industry. Truth be told, the packaging sector has made its name in the fastest-growing industry across all countries. In 2019 it was recorded that the packaging sector has swollen into a $ 917 billion industry globally with a CAGR of 2.8%. As a result, it is predicted that by the end of 2024, this sector is going to reach the mark of $ 1.05 trillion. 

Indian Packaging Industry

Now coming to the Indian packaging sector, it is widely known that the Indian packaging industry is rapidly increasing, and this results in the packaging industry being the fifth largest sector which helps in uplifting the economy. Also, it is the highest growth sector in the Indian market, with a CAGR ranging between 22% to 25%, according to the reports published by the Packaging Industry Association of India (PIAI). Apart from this, due to its immense growth in a short span of time. Thus, the packaging sector is also leading in innovation growth in the country in a number of manufacturing sectors like agriculture and other FMCG segments.

Packaging consumption in India has grown by over 200% in just the last ten years. This results in the growth of packaging at the rate of 4.3 Kg per person per annum (pppa) to 8.6 Kg pppa by the end of the financial year of 2020. Even after such impressive growth, the packaging sector of India still has a lot of headroom growth when compared to other industries present in India. The rise of the packaging sector is because of favorable demographics, rising consumer awareness, and an increase in demand for processed food. 

Top Packaging Companies In India 

Given below are the top 3 packaging companies in India which are trendsetters and leading innovators in this industry. 

1. Balmer Lawrie & Company Ltd.

This one company is considered to be the best packaging service provider in India, and you will be surprised to know it was formed by two Scotsmen, Stephen George Balmer and Alexander Lawrie. The company has an experience 154 years of and in the present day, it is a public sector enterprise that comes under the management of the Ministry of Petroleum and Natural Gas, Government of India. The company has recently produced a turnover of Rs 1593 crores which lead to a profit of Rs 157 crores. 

• Market Cap:- 1,883 Crores
• Divided Yield:- 5.90 
• Sector PE:- 34.71 
• Shareholdings:- 95.87% Public, 1.61% FII, and 2.52% DII
• Revenue March 2022:- 2,055 Crores.
• Net Profit 2022:- 89 cores. 

2. AMD Industries Ltd 

AMD industries were founded in the year 1958, and over the years, the company has made its name in being the leading force in the packaging industry of India. Some of the well-known multinational companies which are engaged in the making of beverages, liquor, and processed food use AMD industry’s packaging to ensure their product deliver safely. This company work with both small size ventures to multinational companies, which have their branches spread all over the globe. The main focus of AMD industries is to provide manufacturing of packaging articles that are used in soft drinks, beverages, water, beer, and even in the pharmaceutical industry. 

• Market Cap:- 139 Crores
• Divided Yield:- 1.03
• Sector PE:- 8.68 
• Shareholdings:- 66.64% Promoter, 33.31% Public, and 0.05% FII
• Revenue March 2022:- 209 crores. 
• Net Profit 2022:- 8 Crores. 

3. Cosmo First Ltd.

Cosmo films are also one of the well-known names in the Indian market, and the company was established in 1981. Apart from this, Cosmo now comes in the top five companies around the globe that manufactures specialty films for packaging, lamination, and even for labeling applications. Some of the significant offerings of this company are biaxially oriented polypropylene (BOPP) films and cast polypropylene (CPP). In addition to this, the research and development team of Cosmo Films Ltd is working hard to bring biaxially oriented polyethylene terephthalate (BOPET) films into production.

The manufacturing unit is located in India and Korea, and it has a BOPP manufacturing capacity of 200,000 TPA. Along with this, the manufacturing capacity of 9,000 TPA with a turnover of $ 311 million. 

• Market Cap:- 2,019 Crores
• Divided Yield:- 4.72
• Sector PE:- 29.38 
• Shareholdings:- 44.09% Promoter, 47.88% Public, 5.96% FII, 0.94% DII, and 1.13% others. 
• Revenue March 2022:- 3038 crores. 
• Net Profit 2022:- 396 crores. 

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Best Packaging Stocks In India 

(Data as of 21st October 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Wrapping Up

So this was some of the vital information regarding packaging stocks in India. India exports tons of products and materials all over the globe. As a result, the need for proper packaging isn’t going anywhere soon. So, if you are interested in investing in packaging stocks, we believe you can make out of it if you plan wisely. 

This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.