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Check Before You Invest : Knack Packaging Ltd

BSE: 544814 NSE: KNACK ISIN: INE17QZ01016
  |   Sector:  FMCG   |   Industry:  Packaging

Snapshot

Q.1 Which industry/sub-sector does Knack Packaging Ltd belong to?
Knack Packaging Ltd belongs to the FMCG sector, operating specifically within the Packaging segment.
Q.2 Is Knack Packaging Ltd a good quality company?
Knack Packaging Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Knack Packaging Ltd undervalued or overvalued?
Knack Packaging Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 26.96 26.61
Price to Book 3.52 3.48
Price to Sales 2.98 2.94
EV to EBITDA 15.6 15.41
Q.4 Is Knack Packaging Ltd a good buy now?
Knack Packaging Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Knack Packaging Ltd?
Knack Packaging Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.3% for FY-2026, which is above its 3-year median of 16.9%, indicating increasing margins.

Q.2 Operating Profit Margin of Knack Packaging Ltd?
Knack Packaging Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.97% for FY-2026, which is in line with its 3-year median of 17.9% indicating stable margins.

Q.3 Net Profit Margin of Knack Packaging Ltd?
Knack Packaging Ltd Net Profit Margin is 11.04% for FY-2026, is above its 3-year median of 9.78%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 18.3 16.9
Operating Profit Margin (%) 17.97 17.9
Net Profit Margin (%) 11.04 9.78

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Knack Packaging Ltd?
Knack Packaging Ltd Return on Asset is 16.61%, which is in line with its 3-year historical median of 16.47%, indicating stable asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Knack Packaging Ltd?
Knack Packaging Ltd Return on capital employed is 30.82% for FY-2026, which is in line with its 3-year historical median of 30.82%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Knack Packaging Ltd?
Knack Packaging Ltd Return on equity is 34.41% for FY-2026, which is in line with its 3-year historical median of 34.41%, indicating the business is making similar use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of Knack Packaging Ltd?
Knack Packaging Ltd Debt-to-Equity ratio is 0.63, which is above the industry average of 0.46, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Knack Packaging Ltd?
Knack Packaging Ltd Debt to cash flow from operations is 2.13, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Knack Packaging Ltd?

Q.1 Promoter shareholding and pledge status of Knack Packaging Ltd?
Promoters hold 70.59% of the Knack Packaging Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Knack Packaging Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Knack Packaging Ltd vs industry peers?
Knack Packaging Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 4.69%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 4.7
Gross Profit Growth (%) 21.8 6.9
Operating Profit Growth (%) 12.3 6.7
Net Profit Growth (%) 25.4 1.5
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.53 1.29
ROE (%) 34.41 13.35
ROCE (%) 30.82 15.25
Cash Conversion Cycle (days) 82.84 84

Valuation & price assessment

Q.1 Stock return of Knack Packaging Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Knack Packaging Ltd vs historical?
The current P/E ratio of 26.96 is in line with than its historical median of 26.61, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 26.96 26.61 23.47
Price to Book 3.52 3.48 2.12
Price to Sales 2.98 2.94 1.17
EV to EBITDA 15.6 15.41 10.42

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