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Check Before You Invest : Promact Plastics Ltd

BSE: 526494 NSE: ISIN: INE818D01011
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Promact Plastics Ltd belong to?
Promact Plastics Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Promact Plastics Ltd a good quality company?
Promact 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 Promact Plastics Ltd undervalued or overvalued?
Promact Plastics Ltd appears Undervalued, as its key valuation ratios are lower 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 - 5.69
Price to Book -2.27 -1.90
Price to Sales 35.96 7.71
EV to EBITDA -29.04 8.22
Q.4 Is Promact Plastics Ltd a good buy now?
Promact 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 Promact Plastics Ltd?
Promact Plastics Ltd revenue growth is -48.9% for FY-2025, which is below its 5-year CAGR of -43.97%, indicating slower growth.

Q.2 Gross Profit margin of Promact Plastics Ltd?
Promact Plastics Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.1% for FY-2025, which is in line with its 5-year median of 23.1%, indicating stable margins.

Q.3 Operating Profit Margin of Promact Plastics Ltd?
Promact Plastics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 69.04% for FY-2025, which is in line with its 5-year median of 69.04% indicating stable margins.

Q.4 Net Profit Margin of Promact Plastics Ltd?
Promact Plastics Ltd Net Profit Margin is 13.74% for FY-2025, is in line with its 5-year median of 13.74%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 23.1 23.1
Operating Profit Margin (%) 69.04 69.04
Net Profit Margin (%) 13.74 13.74

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Promact Plastics Ltd?
Promact Plastics Ltd Return on Asset is 1.77%, which is in line with its 5-year historical median of 1.77%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Promact Plastics Ltd?
Promact Plastics Ltd Return on capital employed is 25.31% for FY-2025, which is in line with its 5-year historical median of 25.31%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Cash conversion cycle of Promact Plastics Ltd?
Promact Plastics Ltd Cash conversion cycle is 1822 days, in line with its 5-year historical median of 1822 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

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

Q.8 Debt to Equity ratio of Promact Plastics Ltd?
Promact Plastics Ltd Debt-to-Equity ratio is -2.25, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Promact Plastics Ltd?
Promact Plastics Ltd Debt to cash flow from operations is 8.54, which is at a unhealthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Promact Plastics Ltd?
Promoters hold 39.43% of the Promact Plastics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Promact Plastics Ltd vs industry peers?
Promact Plastics Ltd revenue CAGR is -43.97%, 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 (%) -48.9 4.7
Gross Profit Growth (%) -78.8 14.3
Operating Profit Growth (%) -58.6 10.1
Net Profit Growth (%) -85.6 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.13 1.06
ROE (%) - 5.91
ROCE (%) 25.31 8.75
Cash Conversion Cycle (days) 1821.63 77

Valuation & price assessment

Q.1 Stock return of Promact Plastics Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 10.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
10.1% 12.3% 44.4% -18.8%
Q.2 Valuation ratios of Promact Plastics Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 5.69, 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 - 5.69 22.05
Price to Book -2.27 -1.90 1.89
Price to Sales 35.96 7.71 1.33
EV to EBITDA -29.04 8.22 10.86

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