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Check Before You Invest : Narmada Macplast Drip Irrigation Systems Ltd

BSE: 517431 NSE: ISIN: INE060D01028
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Narmada Macplast Drip Irrigation Systems Ltd belong to?
Narmada Macplast Drip Irrigation Systems Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Narmada Macplast Drip Irrigation Systems Ltd a good quality company?
Narmada Macplast Drip Irrigation Systems 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 Narmada Macplast Drip Irrigation Systems Ltd undervalued or overvalued?
Narmada Macplast Drip Irrigation Systems 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 5-year
Historic Median
Price to Earnings 45.29 16.11
Price to Book 5.98 2.16
Price to Sales 6.23 1.67
EV to EBITDA 34.31 14.58
Q.4 Is Narmada Macplast Drip Irrigation Systems Ltd a good buy now?
Narmada Macplast Drip Irrigation Systems 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 Narmada Macplast Drip Irrigation Systems Ltd?
Narmada Macplast Drip Irrigation Systems Ltd revenue growth is 285.6% for FY-2025, which is above its 5-year CAGR of 11.95%, indicating faster growth.

Q.2 Gross Profit margin of Narmada Macplast Drip Irrigation Systems Ltd?
Narmada Macplast Drip Irrigation Systems Ltd Gross profit margin which is the profit after deduction of direct costs, is 92.7% for FY-2025, which is above its 5-year median of 0.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Narmada Macplast Drip Irrigation Systems Ltd?
Narmada Macplast Drip Irrigation Systems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.61% for FY-2025, which is above its 5-year median of -0.11% indicating increasing margins.

Q.4 Net Profit Margin of Narmada Macplast Drip Irrigation Systems Ltd?
Narmada Macplast Drip Irrigation Systems Ltd Net Profit Margin is 77.2% for FY-2025, is above its 5-year median of 0.09%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 92.7 0.5
Operating Profit Margin (%) 9.61 -0.11
Net Profit Margin (%) 77.2 0.09

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Narmada Macplast Drip Irrigation Systems Ltd?
Narmada Macplast Drip Irrigation Systems Ltd Return on Asset is 87.72%, which is above its 5-year historical median of 0.11%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Narmada Macplast Drip Irrigation Systems Ltd?
Narmada Macplast Drip Irrigation Systems Ltd Return on capital employed is 121.49% for FY-2025, which is above its 5-year historical median of 1.39%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Narmada Macplast Drip Irrigation Systems Ltd?
Narmada Macplast Drip Irrigation Systems Ltd Return on equity is 107.19% for FY-2025, which is above its 5-year historical median of 0.27%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Narmada Macplast Drip Irrigation Systems Ltd?
Narmada Macplast Drip Irrigation Systems Ltd Cash conversion cycle is 98 days, above its 5-year historical median of 62 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.14 1.14
ROE (%) 107.19 0.27
ROCE (%) 121.49 1.39
Cash Conversion Cycle 98 days 62 days

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

Q.9 Debt to Equity ratio of Narmada Macplast Drip Irrigation Systems Ltd?
Narmada Macplast Drip Irrigation Systems Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Narmada Macplast Drip Irrigation Systems Ltd?
Narmada Macplast Drip Irrigation Systems Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Narmada Macplast Drip Irrigation Systems Ltd?

Q.1 Promoter shareholding and pledge status of Narmada Macplast Drip Irrigation Systems Ltd?
Promoters hold 5.58% of the Narmada Macplast Drip Irrigation Systems Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Narmada Macplast Drip Irrigation Systems Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Narmada Macplast Drip Irrigation Systems Ltd vs industry peers?
Narmada Macplast Drip Irrigation Systems Ltd revenue CAGR is 11.95%, compared to the industry median CAGR of 4.71%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 285.6 4.7
Gross Profit Growth (%) 21,500 14.3
Operating Profit Growth (%) 0 10.1
Net Profit Growth (%) 0 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.14 1.06
ROE (%) 107.19 5.91
ROCE (%) 121.49 8.75
Cash Conversion Cycle (days) 97.73 77

Valuation & price assessment

Q.1 Stock return of Narmada Macplast Drip Irrigation Systems Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 105.15% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 105.2% 161.4% 20%
Q.2 Valuation ratios of Narmada Macplast Drip Irrigation Systems Ltd vs historical?
The current P/E ratio of 45.29 is higher than its historical median of 16.11, indicating that the stock is trading above 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 45.29 16.11 22.05
Price to Book 5.98 2.16 1.89
Price to Sales 6.23 1.67 1.33
EV to EBITDA 34.31 14.58 10.86

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