Many investors might be unaware of the role that RPC’s products play in our daily lives. The packaging it manufactures is used for everything from jerry cans to fruit juice bottles and cleaning sprays. While RPC itself might not be a household name, the brands for which it supplies packaging certainly are: they include Ragu sauce, Nivea cream and Dulux paint to name but a few.

Last month the company released a trading update for the year to March confirming that revenues and operating profit were expected to be significantly ahead of the previous year. RPC made a further acquisition in the final quarter of its financial year, snapping up a small company with good market positions in the Czech Republic and Slovakia.

The group’s shares have strongly outperformed the market over the past year, and analysts expect RPC’s earnings and dividends to grow by 20% over the next two years in contrast to more modest expectations at rival companies.

However, since posting its March trading update the shares have slipped back, which might provide an even better entry point for investors looking to buy into the stock.

We retain our ‘Buy’ recommendation on the shares because of the company’s recent move into the fast-growing Asian markets, the streamlining of European operations and strong dividend policy which are all attractive for investors looking for a mixture of income and growth. The mixed economic backdrop in Europe may weigh on the stock and after the recent strong rise we recommend that investors drip-feed into the stock.