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Check Before You Invest : Ecoplast Ltd

BSE: 526703 NSE: ISIN: INE423D01010
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Ecoplast Ltd belong to?
Ecoplast Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Ecoplast Ltd a good quality company?
Ecoplast Ltd is a good quality company, based on a consistently good 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 Ecoplast Ltd undervalued or overvalued?
Ecoplast 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 22.17 12.11
Price to Book 2.08 1.66
Price to Sales 1.2 0.61
EV to EBITDA 10.73 10.34
Q.4 Is Ecoplast Ltd a good buy now?
Ecoplast 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 Ecoplast Ltd?
Ecoplast Ltd revenue growth is 11.6% for FY-2025, which is above its 5-year CAGR of 5.64%, indicating faster growth.

Q.2 Gross Profit margin of Ecoplast Ltd?
Ecoplast Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.1% for FY-2025, which is above its 5-year median of 8.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Ecoplast Ltd?
Ecoplast Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.73% for FY-2025, which is above its 5-year median of 5.88% indicating increasing margins.

Q.4 Net Profit Margin of Ecoplast Ltd?
Ecoplast Ltd Net Profit Margin is 6.37% for FY-2025, is above its 5-year median of 4.63%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 11.1 8.9
Operating Profit Margin (%) 9.73 5.88
Net Profit Margin (%) 6.37 4.63

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ecoplast Ltd?
Ecoplast Ltd Return on Asset is 11.34%, which is above its 5-year historical median of 9.06%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ecoplast Ltd?
Ecoplast Ltd Return on capital employed is 19.65% for FY-2025, which is above its 5-year historical median of 18.51%. 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 Ecoplast Ltd?
Ecoplast Ltd Return on equity is 13.84% for FY-2025, which is in line with its 5-year historical median of 13.84%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Ecoplast Ltd?
Ecoplast Ltd Cash conversion cycle is 48 days, below its 5-year historical median of 77 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) 1.79 1.8
ROE (%) 13.84 13.84
ROCE (%) 19.65 18.51
Cash Conversion Cycle 48 days 77 days

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

Q.9 Debt to Equity ratio of Ecoplast Ltd?
Ecoplast 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 Ecoplast Ltd?
Ecoplast Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ecoplast Ltd?

Q.1 Promoter shareholding and pledge status of Ecoplast Ltd?
Promoters hold 64.84% of the Ecoplast Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Ecoplast Ltd vs industry peers?
Ecoplast Ltd revenue CAGR is 5.64%, 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 (%) 11.6 4.7
Gross Profit Growth (%) -6.7 14.3
Operating Profit Growth (%) -7.7 10.1
Net Profit Growth (%) -11.1 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.79 1.06
ROE (%) 13.84 5.91
ROCE (%) 19.65 8.75
Cash Conversion Cycle (days) 48.16 77

Valuation & price assessment

Q.1 Stock return of Ecoplast Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 18.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
18.9% 35% 75.9% -17.5%
Q.2 Valuation ratios of Ecoplast Ltd vs historical?
The current P/E ratio of 22.17 is higher than its historical median of 12.11, 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 22.17 12.11 22.05
Price to Book 2.08 1.66 1.89
Price to Sales 1.2 0.61 1.33
EV to EBITDA 10.73 10.34 10.86

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