Check Before You Invest : Prima Plastics Ltd

Snapshot

Q.1 Which industry/sub-sector does Prima Plastics Ltd belong to?

Prima Plastics Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.

Q.2 Is Prima Plastics Ltd a good quality company?

Prima Plastics Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Prima Plastics Ltd undervalued or overvalued?

Prima Plastics Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Prima Plastics Ltd a good buy now?

Prima 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

Q.1 Revenue growth of Prima Plastics Ltd?

Prima Plastics Ltd revenue growth is 10.7% for FY-2025, which is above its 5-year CAGR of 5.98%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Prima Plastics Ltd?

Prima Plastics Ltd Return on capital employed is 9.01% for FY-2025, which is above its 5-year historical median of 7.37%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Prima Plastics Ltd?

Prima Plastics Ltd Return on Asset is 3.3%, which is in line with its 5-year historical median of 3.3%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Prima Plastics Ltd?

Prima Plastics Ltd Return on equity is 5.72% for FY-2025, which is in line with its 5-year historical median of 5.72%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Prima Plastics Ltd?

Prima Plastics Ltd Cash conversion cycle is 134 days, in line with its 5-year historical median of 141 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.06	0.99
ROE	5.72	5.72
ROCE	9.01	7.37
Cash Conversion Cycle	134 days	141 days

Q.6 Gross Profit margin of Prima Plastics Ltd?

Prima Plastics Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.8% for FY-2025, which is above its 5-year median of 7.2%, indicating increasing margins.

Q.7 Operating Profit Margin of Prima Plastics Ltd?

Prima Plastics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.96% for FY-2025, which is below its 5-year median of 6.71% indicating decreasing margins.

Q.8 Net Profit Margin of Prima Plastics Ltd?

Prima Plastics Ltd Net Profit Margin is 3.18% for FY-2025, is in line with with its 5-year median of 3.2%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	7.8	7.2
Operating Profit Margin	4.96	6.71
Net Profit Margin	3.18	3.2

Q.9 Debt to Equity ratio of Prima Plastics Ltd?

Prima Plastics Ltd Debt-to-Equity ratio is 0.53, which is above with the industry average of 0.33, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Prima Plastics Ltd?

Prima Plastics Ltd Debt to cash flow from operations is -17.05, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Prima Plastics Ltd?

Promoters hold 58.27% of the Prima Plastics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Prima Plastics Ltd vs industry peers?

Prima Plastics Ltd revenue CAGR is 5.98%, compared to the industry median CAGR of 7%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	10.7	7
Gross Profit Growth	22.2	NAN
Operating Profit Growth	-12.5	11
Net Profit Growth	-	17.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.06	1.14
ROE	5.72	7.53
ROCE	9.01	8.9
Cash Conversion Cycle (days)	133.72	86

Valuation & price assessment

Q.1 Stock return of Prima Plastics Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -3.6% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-3.6%	1.3%	-6.6%	-30.4%

Q.3 Valuation ratios of Prima Plastics Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	13.92	47.36	21.91
Price to Book	1.49	2.03	1.89
Price to Sales	0.87	1.20	1.33
EV to EBITDA	8.62	17.30	11.02

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