Plastiblends (I) (PLASTIBLEN)
Slow GrowerFairStock Score: 50/100 — MIXED
Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹199.17 |
| Market Cap | ₹517.63 Cr |
| P/E Ratio | 12.12 |
| ROCE | 10.32% |
| ROE | 7.68% |
| Dividend Yield | 1.51% |
| Profit Growth | 67.6% |
| Debt/Equity | 0.05 |
| Sales Growth | 11% |
| Promoter Holding | 62.81% |
| 52-Week Range | ₹121.01 — ₹214.7 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹172.65 |
Strengths
- Trades below book value: ₹155.97 vs ₹162.64, providing a moderate margin of safety
- Very low debt/equity of 0.05, indicating a conservative balance sheet
- P/E of 11.78 is modest and dividend yield of 1.70% compensates while waiting
- Promoter holding of 62.81% aligns management interests with minority shareholders
Concerns
- ROE of 7.68% and ROCE of 10.32% reflect mediocre capital efficiency
- Profit growth is negative at -3.58%; latest quarter net margin is only about 3.2% (₹6 Cr profit on ₹186 Cr sales)
- Piotroski F-Score of 4/9 suggests weak operating and financial health
- PEG of 15.10 implies valuation is not compelling given stagnant earnings
AI Analysis
Looking at Plastiblends, I see a business trading at ₹155.97 against a book value of ₹162.64, so the market is not giving it much credit. A P/E of 11.78 and P/B of 0.96 look like value signals, but as Graham taught, price is what you pay, value is what you get. The value has to come from earning power, and here earning power is modest. ROE is only 7.68%, ROCE is 10.32%, and profits have fallen 3.58% while sales are almost flat at 0.78%. That is not compounding. In the latest quarter, ₹186 Cr of sales produced just ₹6 Cr of net profit, a thin margin. The Piotroski score of 4/9 also tells me the financial health is weak, not the kind of sturdy business I prefer. On the positive side, Plastiblends has almost no debt, with debt/equity at 0.05, and a 1.70% dividend yield while I wait. Promoter holding of 62.81% keeps owners and management aligned. But I need more than a cheap share price; I need a business that can grow its intrinsic value. A PEG of 15.10 is unattractive when earnings are not growing. This is not a wonderful business at a fair price; it is a slow grower at a reasonable price. I would wait for evidence of improving margins, higher ROE, and a return to profit growth. If that happens, the low leverage and price below book offer something. Until then, I would keep this on the shelf.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer