National Plastic (531287)

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Return on equity of 20.84% and ROCE of 17.24% indicate efficient capital use.
• Profit growth of 28.51% on sales growth of 12.18% shows strong operating leverage.
• P/E of 14.69 with PEG of 0.72 offers a reasonable valuation for the growth rate.
• Piotroski F-score of 7/9 suggests solid financial quality and improving fundamentals.
• Market cap of ₹280 Cr and the stock near its 52-week high show market confidence.

Concerns

• Price-to-book of 5.80 leaves little margin of safety on stated book value.
• Latest quarter net margin is thin at roughly 3.4% — ₹3 Cr profit on ₹89 Cr sales.
• Debt/Equity and promoter holding are not disclosed, creating uncertainty about balance-sheet risk and governance.
• Dividend yield of just 0.62% provides minimal income support for downside protection.

AI Analysis

National Plastic intrigues me, but only as a small, fast-growing industrial play. At ₹457.45, the market capitalises it at ₹280 Cr. The trailing P/E of 14.69 is not demanding for a business that grew profits 28.51% while sales rose 12.18%. A PEG of 0.72 hints the market has not fully priced in that growth. Return on equity at 20.84% is respectable, and a Piotroski F-score of 7 out of 9 tells me the underlying financials are improving, not deteriorating. That is a good starting point. But I cannot call it a wonderful business. Plastic products is a competitive, largely commoditised field. I see no clear pricing power or durable moat in the numbers. The price-to-book of 5.80 is steep; I am paying ₹5.80 for every ₹1 of book equity. The dividend yield is only 0.62%, so I am not being paid to wait. The latest quarter's margins look thin: net profit of ₹3 Cr on sales of ₹89 Cr, under 3.4%. Also, debt/equity and promoter holding are not disclosed in the data I have. In Graham's language, information is the investor's best friend; without those numbers, my circle of confidence is smaller. Still, the strong profit growth and low PEG make this an interesting candidate for further study. If the company can sustain this momentum while improving margins and maintaining a healthy balance sheet, the current valuation may prove reasonable. But I would demand a wider margin of safety before committing real capital, especially with the stock sitting at its 52-week high of ₹457.45. A good business at a fair price is fine; an unknown business at a high price is not my kind of investment.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer