Packaging stocks in focus; Everest Kanto up 10%, Cosmo Films hits new high

Cosmo Films gained 1.82 per cent to its fresh all-time high of Rs 488.95 on the BSE after announcing its June quarter earnings

Shares of packaging companies were in focus at the bourses on Thursday and rallied as high as 10 per cent on the back of decent June quarter results.

Cosmo Films rose 1.82 per cent to its fresh all-time high of Rs 488.95 on the BSE after announcing its June quarter earnings (Q1FY20) yesterday. The company posted a 69.15 per cent year-on-year (YoY) increase in consolidated net profit at Rs 46.99 crore for the first quarter ended June 2020.

Among other stocks, Everest Kanto, Essel Propack, Jindal Poly Film, Kanpur Plasti, Ester Industries, and Hitech Corp all gained in the range of 5-10 per cent. Out of these Essel Propack, Jindal Poly Film, Kanpur Plasti, Ester Industries, and Hitech Corp scaled their fresh 52-week highs.

Besides, Polyplex Corporation gained 2.6 per cent, Uflex rose 3.22 per cent (fresh 52-week high), Hindustan Tin Works was up up 3.5 per cent, and Control Print was up 4.28 per cent. 

Among individual stocks, Essel Propack hit a fresh 52-week high at Rs 299.70 after gaining 6.74 per cent. For the June quarter of FY21, the company reported a 14 per cent increase in its consolidated net profit at Rs 45.62 crore for the June quarter. Revenue from operations climbed 17.72 per cent to Rs 741.49 crore, as against Rs 629.83 crore in the corresponding quarter of the previous fiscal. Total expenses were at Rs 669.04 crore compared to Rs 591.77 crore earlier, up 13.05 per cent.

Post the result announcement on July 30, Edelweiss Securities had upgraded the stock to "BUY" from "HOLD" citing the company's "strong delivery on sales and earnings, and sustained capital-efficient growth across geographies."

The brokerage noted that Essel Propack (EPL) continues to deliver on return on capital employed (RoCE), up 421 basis points (bps) YoY in Q1FY21 to 19.9 per cent. "It remains the market leader in oral care space and is accelerating personal care performance. With its eco-friendly solutions (Platina, Green Maple Leaf), EPL has attained recognition from key agencies," it wrote in a result review note issued on July 30.

Shares of UFlex also rose 3.22 per cent to a fresh 52-week high of Rs 373. The packaging materials and solution company had reported over two-fold jump in its consolidated net profit at Rs 196.54 crore for the first quarter of 2020-21 (Q1FY21). Its total income rose marginally by 0.78 per cent to Rs 1,997.54 crore during the quarter under review.

Total production volume during the quarter under review grew 13.44 per cent year-on-year (YoY) to 1,07,599 metric tonnes (MT), while total sales volume increased 8.97 per cent YoY to 1,03,575 MT.

"Due to the pandemic, consumption trends have witnessed a shift and flexible packaging has gained much more importance especially because of the hazards attached to non-packaged products. This resulted in higher production and sales volume," UFlex had said in a statement after the results announcement on Tuesday.