Knack Packaging made a healthy debut on Dalal Street, rewarding investors with a double-digit listing premium. Market experts remain positive on the stock, recommending IPO allottees continue to hold for further upside with a stop-loss at Rs 175. Fresh investors can consider accumulating the stock on dips after reviewing the company's upcoming quarterly performance.
The stock opened at Rs 188 on the NSE, a 10.6% premium to its IPO price of Rs 170, while on the BSE it debuted at Rs 186, reflecting a 9.4% gain. The listing also surpassed prevailing grey market expectations, underlining strong investor confidence.
The company's Rs 439.5-crore IPO witnessed overwhelming demand, supported by robust fundamentals and positive sentiment around its long-term growth prospects.
Expert View: Positive Outlook After Listing
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., remains optimistic on the stock's post-listing trajectory.
"Knack Packaging has delivered a healthy market debut, with the listing comfortably exceeding grey market expectations. The company stands out for its strong revenue growth, improving profitability, healthy return ratios (ROE and ROCE), and robust operating margins. Its fully integrated manufacturing model and reasonable valuation further strengthen its competitive positioning," she said.
However, Nyati advises investors to monitor a few key factors, particularly customer concentration risk and the successful execution of the company's upcoming manufacturing facility, which will play a critical role in sustaining future growth.
According to Nyati, investors who received IPO allotment can continue to hold the stock for potential further gains while maintaining a stop-loss at Rs 175 to manage downside risk. For fresh investors, the recommendation is to wait for price corrections and closely monitor the company's upcoming quarterly earnings before taking fresh exposure.
Knack Packaging is an integrated packaging solutions company engaged in manufacturing printed and laminated woven polypropylene (PLWPP) bags, including pinch-bottom bags used across industries such as food grains, flour, sugar, pet food, fertilisers, chemicals, detergents, cement and construction materials.
The company exports to 71 countries and serves over 1,950 customers globally. It holds an estimated 10.1% share of India's flexible bulk PLWPP bags market and operates a fully integrated manufacturing model, covering the entire value chain, from polypropylene processing to printing and bag conversion.
Its customer base includes leading domestic names such as KRBL, Drools, DCM Shriram, and Baba Agro Foods, while internationally it serves clients including Cargill and several other global brands.
With strong operating metrics, an integrated business model, and an expanding global footprint, Knack Packaging appears well-positioned for long-term growth. While execution and customer diversification remain key monitorables, the company's market debut reinforces investor confidence in its growth story.
