Brokerage InCred Equities Keeps Add Rating on TCPL Packaging as Sales Grow

Brokerage firm InCred Equities keeps its high-conviction add rating on TCPL Packaging shares with a revised target price of 5,270 rupees. This price implies an upside potential of nearly 18 percent from the stock price of 4,471 rupees on November 9. The positive outlook comes from better core business momentum, strong September-quarter results, and a planned entry into the lithium-ion battery separator film business.

Financial Growth

TCPL Packaging reports a strong performance for the September quarter of fiscal year 27 with consolidated sales growing 21.8 percent year-on-year and 13.8 percent sequentially to 560 crore rupees. This revenue figure is 8 percent higher than estimates by InCred Equities. Revenue growth for the first half of the fiscal year stands at 19.1 percent. Consolidated EBITDA reaches 100.1 crore rupees for the quarter with an EBITDA margin of 17.7 percent. Net profit increases 58 percent year-on-year to 45.3 crore rupees while cash profit rises 44 percent to 84.9 crore rupees.

New Venture

A key growth driver is the company entry into the lithium-ion battery separator film business through its wholly owned subsidiary, TCPL Energy Materials, set up on September 24, 2026. The firm plans to invest 125 crore rupees over the next 18 months to build an initial manufacturing capacity of 70 million square metres every year. Commercial production is targeted for the fourth quarter of fiscal year 28. Management aims to scale capacity up to 500 million square metres annually over the next five to seven years.

Context

Brokerages often issue target prices and ratings like add or buy to help investors understand a stock potential based on current financial health and future expansion plans. Expanding into electric vehicle supply chains allows traditional packaging firms to tap into new high-growth manufacturing sectors within India.