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Check Before You Invest : Atharva Poly-Plast Ltd

BSE: 544812 NSE: ISIN: INE226801012
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Atharva Poly-Plast Ltd belong to?
Atharva Poly-Plast Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Atharva Poly-Plast Ltd a good quality company?
Atharva Poly-Plast 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 Atharva Poly-Plast Ltd undervalued or overvalued?
Atharva Poly-Plast 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 25.57 25.28
Price to Book 2.95 2.93
Price to Sales 2.84 2.81
EV to EBITDA 15.19 15.02
Q.4 Is Atharva Poly-Plast Ltd a good buy now?
Atharva Poly-Plast 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 Atharva Poly-Plast Ltd?
Atharva Poly-Plast Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.2% for FY-2025, which is above its 3-year median of 10.8%, indicating increasing margins.

Q.2 Operating Profit Margin of Atharva Poly-Plast Ltd?
Atharva Poly-Plast Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.19% for FY-2025, which is above its 3-year median of 10.77% indicating increasing margins.

Q.3 Net Profit Margin of Atharva Poly-Plast Ltd?
Atharva Poly-Plast Ltd Net Profit Margin is 11.12% for FY-2025, is above its 3-year median of 4.82%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 17.2 10.8
Operating Profit Margin (%) 16.19 10.77
Net Profit Margin (%) 11.12 4.82

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Atharva Poly-Plast Ltd?
Atharva Poly-Plast Ltd Return on Asset is 16.64%, which is above its 3-year historical median of 6.1%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Atharva Poly-Plast Ltd?
Atharva Poly-Plast Ltd Return on capital employed is 36.02% for FY-2025, which is above its 3-year historical median of 19.45%. 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 Atharva Poly-Plast Ltd?
Atharva Poly-Plast Ltd Return on equity is 50.99% for FY-2025, which is above its 3-year historical median of 29.77%, indicating the business is making better 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 Atharva Poly-Plast Ltd?
Atharva Poly-Plast Ltd Debt-to-Equity ratio is 0.61, which is above the industry average of 0.25, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Atharva Poly-Plast Ltd?
Atharva Poly-Plast Ltd Debt to cash flow from operations is 1.14, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Atharva Poly-Plast Ltd?

Q.1 Promoter shareholding and pledge status of Atharva Poly-Plast Ltd?
Promoters hold 100.00% of the Atharva Poly-Plast Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Atharva Poly-Plast Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Atharva Poly-Plast Ltd vs industry peers?
Atharva Poly-Plast Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 3.40%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 3.4
Gross Profit Growth (%) 100 17
Operating Profit Growth (%) 100 12.2
Net Profit Growth (%) 150 20.6
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.5 1.12
ROE (%) 50.99 8.05
ROCE (%) 36.02 10.78
Cash Conversion Cycle (days) 25.3 74

Valuation & price assessment

Q.1 Stock return of Atharva Poly-Plast 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 Atharva Poly-Plast Ltd vs historical?
The current P/E ratio of 25.57 is in line with than its historical median of 25.28, 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 25.57 25.28 25.87
Price to Book 2.95 2.93 1.92
Price to Sales 2.84 2.81 1.59
EV to EBITDA 15.19 15.02 13.18

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