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Check Before You Invest : Tainwala Chemicals & Plastics (India) Ltd

BSE: 507785 NSE: TAINWALCHM ISIN: INE123C01018
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Tainwala Chemicals & Plastics (India) Ltd belong to?
Tainwala Chemicals & Plastics (India) Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Tainwala Chemicals & Plastics (India) Ltd a good quality company?
Tainwala Chemicals & Plastics (India) 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 Tainwala Chemicals & Plastics (India) Ltd undervalued or overvalued?
Tainwala Chemicals & Plastics (India) 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 17.22 38.76
Price to Book 1.08 1.11
Price to Sales 10.41 10.06
EV to EBITDA 13.5 29.74
Q.4 Is Tainwala Chemicals & Plastics (India) Ltd a good buy now?
Tainwala Chemicals & Plastics (India) Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Tainwala Chemicals & Plastics (India) Ltd?
Tainwala Chemicals & Plastics (India) Ltd revenue growth is -8.9% for FY-2025, which is below its 5-year CAGR of 9.19%, indicating slower growth.

Q.2 Gross Profit margin of Tainwala Chemicals & Plastics (India) Ltd?
Tainwala Chemicals & Plastics (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 40.6% for FY-2025, which is above its 5-year median of 33%, indicating increasing margins.

Q.3 Operating Profit Margin of Tainwala Chemicals & Plastics (India) Ltd?
Tainwala Chemicals & Plastics (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.53% for FY-2025, which is above its 5-year median of -32.29% indicating increasing margins.

Q.4 Net Profit Margin of Tainwala Chemicals & Plastics (India) Ltd?
Tainwala Chemicals & Plastics (India) Ltd Net Profit Margin is 29.97% for FY-2025, is above its 5-year median of 25.57%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 40.6 33
Operating Profit Margin (%) 8.53 -32.29
Net Profit Margin (%) 29.97 25.57

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Tainwala Chemicals & Plastics (India) Ltd?
Tainwala Chemicals & Plastics (India) Ltd Return on Asset is 3.39%, which is in line with its 5-year historical median of 3.39%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Tainwala Chemicals & Plastics (India) Ltd?
Tainwala Chemicals & Plastics (India) Ltd Return on capital employed is 4.64% for FY-2025, which is above its 5-year historical median of 4.13%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Tainwala Chemicals & Plastics (India) Ltd?
Tainwala Chemicals & Plastics (India) Ltd Return on equity is 3.63% for FY-2025, which is in line with its 5-year historical median of 3.47%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Tainwala Chemicals & Plastics (India) Ltd?
Tainwala Chemicals & Plastics (India) Ltd Cash conversion cycle is 47 days, below its 5-year historical median of 97 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.11 0.11
ROE (%) 3.63 3.47
ROCE (%) 4.64 4.13
Cash Conversion Cycle 47 days 97 days

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

Q.9 Debt to Equity ratio of Tainwala Chemicals & Plastics (India) Ltd?
Tainwala Chemicals & Plastics (India) 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 Tainwala Chemicals & Plastics (India) Ltd?
Tainwala Chemicals & Plastics (India) Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Tainwala Chemicals & Plastics (India) Ltd?

Q.1 Promoter shareholding and pledge status of Tainwala Chemicals & Plastics (India) Ltd?
Promoters hold 67.85% of the Tainwala Chemicals & Plastics (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Tainwala Chemicals & Plastics (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Tainwala Chemicals & Plastics (India) Ltd vs industry peers?
Tainwala Chemicals & Plastics (India) Ltd revenue CAGR is 9.19%, 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 (%) -8.9 4.7
Gross Profit Growth (%) 16.7 14.3
Operating Profit Growth (%) 0 10.1
Net Profit Growth (%) - 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.11 1.06
ROE (%) 3.63 5.91
ROCE (%) 4.64 8.75
Cash Conversion Cycle (days) 46.83 77

Valuation & price assessment

Q.1 Stock return of Tainwala Chemicals & Plastics (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 15.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
15.8% 20.8% 21.3% -2.8%
Q.2 Valuation ratios of Tainwala Chemicals & Plastics (India) Ltd vs historical?
The current P/E ratio of 17.22 is lower than its historical median of 38.76, 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 17.22 38.76 22.05
Price to Book 1.08 1.11 1.89
Price to Sales 10.41 10.06 1.33
EV to EBITDA 13.5 29.74 10.86

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