Essel Propack claims to be “the largest global specialty packaging company in the world”. Tell me, which product does not need packaging! Every product does.

Essel Propack provides packaging solutions not only to Beauty & Cosmetics companies, and  pharmaceutical companies, but also to the food packaging industries.

Now what got me interested in EP? Two news points: 

• A huge drop in crude oil price has benefited many companies from the industry, as plastic is derived from by petroleum refining products. Lower the cost of oil, lower is the cost of plastic raw materials used across product manufacturing units to produce finished goods. 
  Read more at: economictimes.indiatimes.com

• Essel Propack, the world’s largest laminated tubes manufacturer, is understood to design and manufacture tube packaging requirement of Patanjali, which is growing in triple digits and is expected to touch Rs 10,000 crore turnover in the current fiscal.
  Read more at: economictimes.indiatimes.com

Additionally, if you look at the fundamentals, it does seem like pretty good, if not great, investment opportunity given the abundance of over-valued stocks around us. A P/E ratio below 21 in this investment climate seems pretty decent.

What do you think? 

P.S.: At the time of writing this blog (end of day 4th July, 2017), the share of Essel Propack had been trading at Rs. 242.00 in the NSE.