Stock Pitch: Will IG Design keep rising?

AIM-listed gift packaging specialist IG Design (LON:IGR) was a major multi-bagger over the decade leading up to the pandemic. I remember ruling out the stock as being too expensive, only to see the shares continue rising.
Between January 2010 and January 2020, IG Design’s share price rose by 880% to more than 700p – before collapsing to less than 50p in 2022.

A successful turnaround has seen the stock recover to trade around 200p. The valuation looks moderate to me and management are confident they can deliver further improvements in profitability, plus organic growth.
While I don’t expect IG Design’s share price to return to the record highs of 2019, I do think the shares have the potential to deliver meaningful gains from current levels, as I’ll now explain.
Summary
Pros:
IG Design is one of the biggest players in this sector and supplies some of the world’s largest retailersThe company benefits from economies of scale and may find it easier to meet growing customer demand for near-shored products than smaller suppliers will doThe founding Hedlund family retains a 20%+ shareholding. I’d hope this provides some...