Brokerage firm InCred Equities has retained its high-conviction 'ADD' rating on TCPL Packaging shares, with a revised target price of ₹5,270, implying an upside potential of nearly 18% from the stock's latest closing price of ₹4,471 on November 9. The brokerage's positive outlook comes on the back of improving core business momentum, strong September-quarter performance and the company's planned entry into the lithium-ion battery separator film business.
In its latest research report, InCred Equities said TCPL Packaging's growth momentum has improved across its paperboard and flexible packaging segments, supported by healthy customer demand, better sales mix and price hikes. The brokerage also sees the company's new battery separator film venture as a potential long-term growth driver, with opportunities arising from India's expanding electric vehicle and energy storage ecosystem.
TCPL Packaging reported a strong performance for the September quarter of FY27, with consolidated sales growing 21.8% year-on-year and 13.8% sequentially to ₹560 crore. The revenue figure was 8% higher than InCred Equities' estimates. Revenue growth for the first half of FY27 stood at 19.1%.
According to InCred Equities, this marked a significant acceleration from the 16.1% growth recorded in the June quarter and the subdued performance during Q2 and Q3 FY26, when exports were affected by geopolitical tensions.
The brokerage attributed the improvement to stable domestic FMCG demand, a recovery in exports on a lower base, better sales mix and price hikes that supported realisations. Management also highlighted healthy demand across both paperboard (folding cartons) and flexible packaging businesses.