Shares of TCPL Packaging hit an all-time high of Rs 1,650.30 in intraday trade on Friday, up 16% on the BSE, while the market was flat amid a healthy business outlook. Shares of the packaging company surpassed the previous high of Rs 1,540.45, registered on September 5, 2022. In contrast, the S&P BSE Sensex was down 0.04% at 61,725 at 09:34 am.

Shares of TCPL Packaging have soared 44% over the past two weeks after the company reported a strong performance for the September quarter (Q2FY23) amid a challenging operating environment. In Q2FY23, the company’s consolidated revenue rose 43% YoY to Rs 361.7 crore on the back of higher volumes and better realisation.

In addition, the company witnessed the stabilisation of its key raw materials, which enabled it to achieve strong profitability during the quarter. Ebitda rose 60% year-on-year to Rs 57.5 crore, while the margin expanded 165 basis points to 15.9%. Consolidated profit after tax doubled to Rs 39.5 crore from Rs 10.6 crore a year earlier. The company said that this involves an insurance claim of Rs 17.3 crore arising from the loss of fixed assets damaged by fire and loss of profit in the previous year.

TCPL Packaging is one of India’s leading producers of sustainable packaging solutions, providing solutions to clients from various industries. The company said that the packaging industry is expected to witness huge growth in the coming years as manufacturing in various sectors in India becomes self-reliant.

However, some key underlying industries are witnessing an environment of subdued demand. As such, management remains cautiously optimistic about the near-term outlook. However, the long-term trends in the packaging industry remain very positive.

Through the acquisition of Creative Offset Printers Private Limited (COPPL), TCPL Packaging has entered the high-potential hard box segment, serving several fast-growing end-user electronics industries. According to management, since the acquisition, the company has expanded its product portfolio to include smartphones, smart watches, earphones, etc., adding several well-known brands in the electronics industry.

Meanwhile, shares in TCPL Packaging have soared 110% over the past six months, compared with a 14% gain in the S&P BSE Sensex. It has risen 219% in 2022, compared with a 4% gain for the benchmark index.