Tokyo Plast Intl (TOKYOPLAST)

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

Key Financials

Strengths

• Promoter holding of 68.80% aligns management interests with minority shareholders
• Debt-to-equity ratio of 0.59 is manageable and not excessive
• Price is about 32% below the 52-week high, offering a lower entry point than earlier
• Book value of ₹64.97 provides some tangible asset support to the market price

Concerns

• Profit growth of -262.50% and latest quarter net profit of ~₹0 Cr indicate severe earnings deterioration or losses
• ROE of 2.21% and ROCE of 4.53% are far below acceptable return levels for a value investment
• P/E of 71.53 is unjustified for a company with negligible or negative earnings
• Piotroski F-Score of 3/9 points to weak financial health and high distress risk

AI Analysis

Let me start with what I see: Tokyo Plast Intl is a small plastic products firm, market cap ₹77 Cr. At ₹96.30, you pay 71.5 times earnings. But what earnings? Profit growth is -262%, latest quarter net profit is essentially zero. This is a business in trouble, not compounding. Return on equity is 2.21% and ROCE is 4.53% — a savings account might do better, without the business risk. Sales shrank 10%, and the Piotroski F-score of 3 out of 9 confirms deteriorating fundamentals. There is no dividend to compensate while you wait. On the plus side, debt/equity is 0.59, not crushing, and promoters own 68.8%, so their interests are aligned. Book value is ₹64.97, so at ₹96.30, you pay 1.48x book for a company earning a 2% return on that book. Benjamin Graham would call that a poor bargain. The 52-week range shows the stock has fallen from ₹140 to ₹96, but value is not about price drop; it's about quality and margin of safety. Here, the margin of safety is missing because earnings have collapsed. Is this a turnaround? It could be, but I need evidence. A turnaround candidate should have a clear path to profitability, stable balance sheet, and improving operations. I see no such evidence in these numbers. The company may have some asset backing, but at 1.48x book, you're paying for future recovery that has not yet appeared. I would wait on the sidelines until sales stabilize, profits return, and returns on capital move toward acceptable levels. In investing, patience is a virtue, but only when the price is right. Here, the price asks too much for too little.

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