Sunday, January 10, 2010

A Multibagger again...

Dear friends,

I would like to recommend a scrip to readers as my gift on this new year 2010. My sense have already been diagnosed and decided this scrip to consider as a multibagger on the basis of their history as well as future growth prospects of the business model. This gem stock, I have already been recommended to my certain clients and most of them enjoying tremendous returns in a very short span of time. Hope they will comment their own about their experiences, gains and views. I am still confident on this company, it’s management and the business model they involved. Decide if you are convinced after a close scan on the following lines.

BSE Code - 532950
Scrip - Manjushree Technopack Ltd
Sector - Packaging (Plastic)
CMP - 52.55 (08/01/2010)
EPS - 6.60
PE - 7.96
BV - 43.88
FV - 10
52 Week L/H - 10.05/53.80
Buy Range - 40-55 (Accumulate in every falls before 55, reasonable in SIP manner even before 60)
Ever High post 2000 - 66.00(Feb 2008)
Market Cap - 71.21
MD - Vimal Kedia
Promoter’s holdings - 55%


a) Recession proof - MTL kept an average of more than 60% growth in PAT (Last 7 quarters).

b) The fast changing and innovative packing trends from conventional to compact with unique styles.

c) The dominant client base including established FMCG/Pharma giants.

d) Stable demand on packaging products ahead.

e) The growing retail industry and increasing power of purchase.

f) Efficient Management.

Bangalore based plastic packaging major; Manjushree Technopack Ltd (MTL) is a public limited company, with over 25 years of packaging experience. MTL has build expertise in entire variety of nonflexible packaging solutions including PET Containers, Multilayer PP Containers and PET Preforms which make use of the European, Japanese and Canadian technologies.

The variety of plastic packaging products of MTL for domestic as well as exports caters leading players in evergreen FMCG, Pharma and Food Processing segments including giants like Unilever, GlaxoSmithkline, P&G, Cadbury and Nestle etc. MTL is providing packaging solutions for a vast range of products such as Confectioneries, Tea/Coffee, Personal Care products, Pharmaceuticals, Food products, Sales promotional stuffs, iced tea, Ready-to-drink beverages, Fruit juices, Jams, Ketchups, Mayonnaise, Sauces, Milk & Dairy products, Infant foods, Soups, Agro-chemicals, Gherkins, Aerated Beverages, Household cleaners, Pickles, Health Supplements, Mineral water, and liquors etc.

A rough calculation of my own says, I buys more than 8-12 products indirectly of Manjushree in a month. This observation is factual and, I have accumulated their empty containers to count, for this purpose for more than three months. Funny, but in worth… Now, what about you? Observe and comment.

The 200,000 sq ft. facility of MTL includes two high-tech production plants that comply with European Food-Grade Manufacturing Standards, a 'Class 10,000 Clean Room' (The Hygienic standard specified for pharmaceutical containers). The company is capable to produce anything from 5 ml to 15L in various neck sizes and designs, with a wide range of closures & sealing options. To the entrepreneurs.., go ahead free with your products/business, the packaging solutions are ready. I am not neglecting the proposals to a possible ban on plastic products, but it will take time, because we are in India.

The company has won Asia Star and India Star awards on various packaging designs and innovations. The major clients includes Coca Cola, Pepsi, Kraft, Hindustan Lever, Nestle, Britannia, Glaxo Smith Kline, Procter&Gamble, Tata, Goodricke Group, Cadbury, McLeod, Godrej, Nutrine, Orbit Wrigley`s, Perfetti, Wipro, Parry`s, Kellogg’s, Henkel, Pfizer, MTR, Heinz and several other leading players in FMCG/Pharma segment. Marketing offices at the major metros/cosmos including Mumbai, Chennai and Bangalore effectively coordinating and liaise with clients across the country.

Mr. Vimal Kedia, Managing Director, under his impressive leadership, Manjushree has grown from being just a plastic product company to the today’s muscular stature. He has been felicitated with the “Best Entrepreneur Award” from the President of India. The company has ranked amongst Top 500 SMEs (Small and Medium Enterprises) in “India’s 1st SME Top 500 Awards”.

My View on the scrip

I strongly believe, this company will do miracles for you in long term. The packaging sector has not been greatly affected by recession. In fact they have registered growth in most of the cases. Coca Cola and Pepsi have even registered about 30% growth in the peak recession era.

The overall packaging (Packing/styles/dimensions/labeling) is increasingly becoming a differentiator for products in every FMCG categories. As you aware, the sectors, FMCG, Pharma and Liquor has been growing at a consistent pace, and the packaging sector has a constant demand simultaneously. These industries will continue to drive the growth of packaging industry, and at the same time modern retail spectrum is growing at a fast pace. The entry of payers like Walmart, Spencer etc… will surely accelerate this growth as well as leading home players like Reliance & Birla. Many FMCG companies have changed their formats of packaging from ordinary paper boxes, metal and glass containers to a variety of fancy plastic containers (baby foods/nutrition drinks etc) with varied options of closure systems, labeling and decorations and the process is ongoing.

Let me tell the most solid and positive point which established my faith on this company. The branded and popular packaging styles/patterns of leading products can not be easily changeable/modifiable by manufacturers especially in case of Consumer goods, Pharma & Edibles. The recognized brand or goodwill concept of products in certain shapes which carved in our brains is not easily changeable. In essence, the shape of Junior Horlicks container is established in your kids’ brain, you will strive hard to convince him/her with another container as Junior Horlicks. In simple words, companies have to spend millions again to market an existing product in new pack, will they?

Plus, the ongoing fully automatic filling processes designed in compatible with existing container patterns may restrict companies from frequent changes in packing. Both the above reasons are specific to packaging industry and moreover I hope, it will keep the clients with MTL for long term which will ensure stable demand for their products.

Manjushree Technopack Ltd comes under a unique class in the sector in all respects and keeping a superior reputation in the field. Accumulate!..

We will talk about this scrip again ...after 3 years….

Comment please…

Shabu Thachat –



  1. Hello Shabu,

    Thanks a lot for recommending this script sometime back (when it was not moving at all). As soon as I bought it (for around Rs.32), it has started moving like a rocket. I know the tremendous movement is very fast that the sustainability of such a propulsion is a question over long time (It have given me around 70% returns now in just one month. I will become a multi billionaire if the same continues for 2 years. I believe it is not possible at all). The thing I am happy about is I entered the script at a very reasonable price, and now am enjoying its fruits.

    Once again thanks a lot!!!


  2. Dear Madan,

    Thanks a lot for the comment. I don't expect a 70% reverse at any cost even in extreme fluctuations for this scrip.

    I am remembering your mail query regarding this scrip when I recommended u at very first. It was a genuine query with reliable news and I wish we will exit well in advance in any such case..

    Any way, I am happier than you clients because such gains are boosting my confidence on the track I follows.

    Happy investing and regards

    Shabu Thachat

  3. Shabu Sir.

    My Few Cents for your Best Phrase that caught my eye.
    This Sentence : "In essence, the shape of Junior Horlicks container is established in your kids brain, you will strive hard to convince him/her with another container as Junior Horlicks" Reminds me of google Tactics and why they are very very desperate of youths.

    Google Targeting Youths(school and college) by giving away sexy products /app's 100% Free(Google Earth, Time Pass Orkut, GTalk, Blogspot, Chrome, Google Web Office, Humungous Trafficed YouTube etc..) WHY ? : In order to Catch Them Young and Hook Them All Forever and Monitize All sexy products Forever while M$ still Scratching Head to catch up, break the firewall to get in to school and college. Soon the next gen youth read M$ in history books only after Google Acquires more youths in the comming days.

    Manju Products seems to know better Neuro Marketing [Where Science of Brain meets Marketing ] then its compitator. Manju Products Dont Let Buyers to look @ competitor products becuz they have carved in such a way that makes us decisions to buy Maju Products only. Its all about Packaging then taste.

    Protinules from Alembic is far better in term of effective to health then Bournvita But Still we buy Bournvita, Why ?. Do People Leave Smoking. No. Why?. You know the answers :)

    The Theme is how Product Marketing injects in to Human Neurons/6th sense that makes us hard to select others. We Should Buy Such type of Product's Stock and Manju Clearly Stands @ that point and The Long term for it is Good.

    For Those who love Neuro Marketing this one stands out most

    Thank you.

  4. Hi shabu,
    I second Mr Madan's Comments. I too was hesitant in buying this script when you recommended. Not only there was NO price movement, the volume too was very low @ that time when the price was around 30-33. But when you insisted me on your next advisory, i plunged in to it which has rewarded beyond expectation and that has proven your analysis.

    Thanks and keep continuing your work which is of real bless for small retail investors like me.


  5. Thanks Shabu for recommending this script earlier (I have entered at 32).....After reading through your article this really seems to be a gem.....Thanks a lot.

  6. Dear Mahesh,

    Thanks a lot for such a power packed comment flled with knowledge and analytical views. Thanks for the link too.


    Shabu Thachat

  7. Dear Arul & Jagadeesh,

    Thanks for the heartful comments. Looking forward to sharing of more such scrips in the days to come.

    regards and Happy investing

  8. Sir,

    I am happy that I realized your ability before madan, arul and jagadeesh. I was able to buy the stock below 23. When I brought the stock, the stock was trading near 52 weeks high. But you were so confident that you suggested me to buy the stock in huge quantity. Now also the stock is near 52 weeks high but cmp is 57.1. But even now the stock is under valued. One good thing I noted about this company is they have given 3 years contract to supply raw materials. So if inflation increases in future, it will be good for this company. I don't think govt. will ban plastics before we book multi bagger profits.

  9. Dear James,


    Heartfully thanking for the sheer trust you shown and you are one of the very few who invested just after me...

    Be patient... as you said, we will exit..when our leaders will start discussion in the parliament on plastic ban.


  10. Hi Shabu,
    I came accross your blog when I was surfing the net. Excellent articles related to stock market.
    Kep the good work going.

  11. Wonderful Work Shabu.. I hope i would be able to avail your service soon.

  12. Dear Shibu,

    Thanks for the encouraging comment.. and welcome to my services.


  13. Dear Shabu,

    I have seen some news government banning the plastics. Will it affect this stock.




The blog is associated with information on Indian stock market and author’s investment view points on various emerging stocks/sectors. The contents discussed in this blog are purely my own personal opinion and in no case weigh it as any kind of recommendation for stock market investment. The sheer purpose of this blog is to educate the interested community on market related subjects based on my experience and I am, in no way, responsible for investment decisions based on the contents described in this blog.

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