MoneyWorks4Me

Check Before You Invest : Manika Plastech Ltd

BSE: 544929 NSE: MANIKA ISIN: INE0KWF01020
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Manika Plastech Ltd belong to?
Manika Plastech Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Manika Plastech Ltd a good quality company?
Manika Plastech 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 Manika Plastech Ltd undervalued or overvalued?
Manika Plastech 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 21.62 -
Price to Book 2.02 -
Price to Sales 1.11 -
EV to EBITDA 9.63 -
Q.4 Is Manika Plastech Ltd a good buy now?
Manika Plastech 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 Manika Plastech Ltd?
Manika Plastech Ltd revenue growth is 7.3% for FY-2026, which is below its 5-year CAGR of 10.22%, indicating slower growth.

Q.2 Gross Profit margin of Manika Plastech Ltd?
Manika Plastech Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.2% for FY-2026, which is above its 5-year median of 8.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Manika Plastech Ltd?
Manika Plastech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.38% for FY-2026, which is above its 5-year median of 9.49% indicating increasing margins.

Q.4 Net Profit Margin of Manika Plastech Ltd?
Manika Plastech Ltd Net Profit Margin is 5.14% for FY-2026, is above its 5-year median of 3.25%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.2 8.2
Operating Profit Margin (%) 13.38 9.49
Net Profit Margin (%) 5.14 3.25

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Manika Plastech Ltd?
Manika Plastech Ltd Return on Asset is 6.95%, which is above its 5-year historical median of 6.16%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Manika Plastech Ltd?
Manika Plastech Ltd Return on capital employed is 19.84% for FY-2026, which is above its 5-year historical median of 15.5%. 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 Manika Plastech Ltd?
Manika Plastech Ltd Return on equity is 16.42% for FY-2026, which is above its 5-year historical median of 12.22%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Manika Plastech Ltd?
Manika Plastech Ltd Cash conversion cycle is 77 days, above its 5-year historical median of 65 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) 1.35 1.57
ROE (%) 16.42 12.22
ROCE (%) 19.84 15.5
Cash Conversion Cycle 77 days 65 days

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

Q.9 Debt to Equity ratio of Manika Plastech Ltd?
Manika Plastech Ltd Debt-to-Equity ratio is 0.60, which is above the industry average of 0.25, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Manika Plastech Ltd?
Manika Plastech Ltd Debt to cash flow from operations is 1.99, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Manika Plastech Ltd?

Q.1 Promoter shareholding and pledge status of Manika Plastech Ltd?
Promoters hold 74.95% of the Manika Plastech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Manika Plastech Ltd vs industry peers?
Manika Plastech Ltd revenue CAGR is 10.22%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 7.3 -
Gross Profit Growth (%) 15.8 14
Operating Profit Growth (%) 28.9 8.8
Net Profit Growth (%) 15.8 16.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.35 1.15
ROE (%) 16.42 7.17
ROCE (%) 19.84 9.24
Cash Conversion Cycle (days) 76.81 73

Valuation & price assessment

Q.1 Stock return of Manika Plastech Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Manika Plastech Ltd vs historical?
The current P/E ratio of 21.62 is higher than its historical median of , 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 21.62 - 22.05
Price to Book 2.02 - 1.89
Price to Sales 1.11 - 1.33
EV to EBITDA 9.63 - 10.86

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