Check Before You Invest : Prima Plastics Ltd

Q: 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: Is Prima Plastics Ltd a good quality company?

Prima Plastics Ltd is a average quality company, based on a somewhat consistent 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: Is Prima Plastics Ltd undervalued or overvalued?

Prima Plastics 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. Price to Earnings, Current: 14.49, Historic Median: 38.91. Price to Book, Current: 2.32, Historic Median: 2.03. Price to Sales, Current: 1.41, Historic Median: 1.20. EV to EBITDA, Current: 9.04, Historic Median: 17.29

Q: 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

Q: 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: 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: 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: Net Profit Margin of Prima Plastics Ltd?

Prima Plastics Ltd Net Profit Margin is 3.18% for FY-2025, is in line with its 5-year median of 3.2%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 7.8, Historic Median: 7.2. Operating Profit Margin (%), Current: 4.96, Historic Median: 6.71. Net Profit Margin (%), Current: 3.18, Historic Median: 3.2

Q: 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: 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.

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 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 Prima Plastics Ltd undervalued or overvalued?

Prima Plastics 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	14.49	38.91
Price to Book	2.32	2.03
Price to Sales	1.41	1.20
EV to EBITDA	9.04	17.29

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

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 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 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.3 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.4 Net Profit Margin of Prima Plastics Ltd?

Prima Plastics Ltd Net Profit Margin is 3.18% for FY-2025, is in line 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	1.06	0.99
ROE (%)	5.72	5.72
ROCE (%)	9.01	7.37
Cash Conversion Cycle	134 days	141 days

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

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

Prima Plastics Ltd Debt-to-Equity ratio is 0.53, 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 Prima Plastics Ltd?

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

Ownership & governance

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

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)

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

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 4.71%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	10.7	4.7
Gross Profit Growth (%)	22.2	14.3
Operating Profit Growth (%)	-12.5	10.1
Net Profit Growth (%)	-	18.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.06	1.06
ROE (%)	5.72	5.91
ROCE (%)	9.01	8.75
Cash Conversion Cycle (days)	133.72	77

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 -3.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-3.3%	0.6%	-6.3%	-29.6%

Q.2 Valuation ratios of Prima Plastics Ltd vs historical?

The current P/E ratio of 14.49 is lower than its historical median of 38.91, 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	14.49	38.91	22.05
Price to Book	2.32	2.03	1.89
Price to Sales	1.41	1.20	1.33
EV to EBITDA	9.04	17.29	10.86

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Check Before You Invest : Prima Plastics Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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