Knack Packaging share price: Buy, hold or sell stock post 13% listing day gains?

On its listing day, shares of Knack Packaging Ltd jumped 13 per cent over its IPO issue price of Rs 170 apiece, making IPO investors wonder whether they should book profits or stay put. 

The stock hit a high of Rs 192 apiece and a low of Rs 183.15 apiece so far on BSE. A similar high was seen on NSE, where the Knack Packaging stock was later trading 9.22 per cent higher at Rs 185.82. The stock's listing gains came in better than grey market expectations.

Shivani Nyati, Head of Wealth at Swastika Investmart said the Ahmedabad-based firm is backed by strong fundamentals, including healthy revenue growth, improving profitability, high ROE and ROCE, and robust operating margins. 

"Its reasonable valuation and fully integrated manufacturing capabilities provide a competitive advantage. However, investors should keep an eye on customer concentration risk and the successful execution of its new manufacturing facility, which will be crucial for future growth," Nyati said.

Nyati said her post-listing view on Knack Packaging remained positive. 

"Investors who have received allotment can continue to hold the stock for further upside, while maintaining a stop-loss at Rs 175 to manage downside risk. Fresh investors should consider entering on dips after monitoring the company's upcoming quarterly performance," Nyati said.

Knack Packaging Ltd is an integrated packaging solutions provider focusing on innovation, exports, and sustainability. The company manufactures Printed and Laminated Woven Polypropylene (PLWPP) bags, including pinch bottom, gusset, block bottom, and retail shopping bags.

It holds 10.1 per cent market share in India's PLWPP bulk bags market and controls the entire value chain from PP granule to finished bag, which explains why its Ebitda  margins at 18 per cent are higher than listed peers like TCPL Packaging and Time Technolplast, Nirmal Bang said in its IPO preview note.

In FY26, 94 per cent of the company's revenue came from existing customers and no single customer exceeded 25 per cent of revenue. The company serves diverse end-use sectors, reducing concentration risk, the brokerae said.

The Knack Packaging IPO proceeds will fund expansion that would nearly double capacity — from 43,300 MTPA to 76,000 MTPA by October 2027.