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Check Before You Invest : MPL Plastics Ltd

BSE: 526143 NSE: MILTONPLAS ISIN: INE343A01016
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does MPL Plastics Ltd belong to?
MPL Plastics Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is MPL Plastics Ltd a good quality company?
MPL Plastics Ltd is a quality company, based on a 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 MPL Plastics Ltd undervalued or overvalued?
MPL Plastics Ltd appears Fair, as its key valuation ratios are in line with 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 5-year
Historic Median
Price to Earnings - 0.14
Price to Book -1.96 -1.63
Price to Sales - -
EV to EBITDA -23.54 -15.36
Q.4 Is MPL Plastics Ltd a good buy now?
MPL Plastics 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of MPL Plastics Ltd?
MPL Plastics Ltd revenue growth is 0% for FY-2025, which is above its 5-year CAGR of -100%, indicating faster growth.

Q.2 Gross Profit margin of MPL Plastics Ltd?
MPL Plastics Ltd Gross profit margin which is the profit after deduction of direct costs, is -8206.4% for FY-2025, which is below its 5-year median of -51.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of MPL Plastics Ltd?
MPL Plastics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0% for FY-2025, which is above its 5-year median of -61.83% indicating increasing margins.

Q.4 Net Profit Margin of MPL Plastics Ltd?
MPL Plastics Ltd Net Profit Margin is -% for FY-2025, is above its 5-year median of -51.86%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -8206.4 -51.9
Operating Profit Margin (%) - -61.83
Net Profit Margin (%) - -51.86

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of MPL Plastics Ltd?
MPL Plastics Ltd Return on Asset is -19.75%, which is below its 5-year historical median of 96.1%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of MPL Plastics Ltd?
MPL Plastics Ltd Return on capital employed is 0% for FY-2025, which is above its 5-year historical median of -21.35%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of MPL Plastics Ltd?
MPL Plastics Ltd Debt-to-Equity ratio is -0.98, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of MPL Plastics Ltd?
MPL Plastics Ltd Debt to cash flow from operations is -5.73, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of MPL Plastics Ltd?

Q.1 Promoter shareholding and pledge status of MPL Plastics Ltd?
Promoters hold 24.00% of the MPL Plastics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does MPL Plastics Ltd performance compare with that of its Peers?

Q.1 Revenue growth of MPL Plastics Ltd vs industry peers?
MPL Plastics Ltd revenue CAGR is -100.00%, compared to the industry median CAGR of 4.71%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 4.7
Gross Profit Growth (%) -104.3 14.3
Operating Profit Growth (%) 0 10.1
Net Profit Growth (%) -105.3 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) - 1.06
ROE (%) - 5.91
ROCE (%) - 8.75
Cash Conversion Cycle (days) - 77

Valuation & price assessment

Q.1 Stock return of MPL Plastics Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -11.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-11.2% -1.8% -26.2% -38.1%
Q.2 Valuation ratios of MPL Plastics Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 0.14, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - 0.14 22.05
Price to Book -1.96 -1.63 1.89
Price to Sales - - 1.33
EV to EBITDA -23.54 -15.36 10.86

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