TPL Plastech (TPLPLASTEH)
Fast GrowerFairStock Score: 50/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹77.33 |
| Market Cap | ₹603.2 Cr |
| P/E Ratio | 19.98 |
| ROCE | 19.85% |
| ROE | 20.79% |
| Dividend Yield | 1.68% |
| Profit Growth | 19.53% |
| Debt/Equity | 0.11 |
| Sales Growth | 37.59% |
| Promoter Holding | 74.86% |
| 52-Week Range | ₹50.01 — ₹90.33 |
| Sector | Industrial Products |
| Book Value | ₹21.6 |
Strengths
- High profitability with ROE 20.79% and ROCE 19.85%
- Low leverage with Debt/Equity of just 0.14
- Strong growth: sales up 22.17% and profits up 25.40%
- Promoter holding of 74.86% aligns interests with minority shareholders
- Piotroski F-Score of 7/9 indicates sound financial fundamentals
Concerns
- P/B of 3.94 is expensive relative to book value of ₹16.94, leaving a thin margin of safety
- FairStock Score of 47/100 suggests mixed fundamentals
- Packaging is a competitive industry with no clear durable moat
- Dividend yield of 1.48% offers modest income support
AI Analysis
I like simple businesses, and packaging is one I can understand. TPL Plastech earns a solid return on capital—ROE 20.79% and ROCE 19.85%—with very little debt, only 0.14 times equity. That tells me management is not relying on leverage to manufacture results. The growth numbers are impressive too: sales up 22.17% and profits up 25.40%. The latest quarter, with sales of ₹111 crore and net profit of ₹9 crore, is in line with that momentum. But investing is about price, not just quality. At ₹66.76, the P/E is 18.89, which is not absurd, and the PEG ratio is 0.79, suggesting the market is not fully paying for the growth. Yet price-to-book of 3.94 gives me pause. Book value is only ₹16.94; I am paying nearly four times that. Graham would demand a margin of safety. Here, the margin is thin if growth slows or packaging margins get squeezed by competition. The FairStock score of 47/100 is a warning flag—it says mixed. Piotroski F-score is 7, so the financial foundations are sound. Promoter holding of 74.86% is reassuring, and a dividend yield of 1.48% is a small but real return. Would I buy it as a wonderful business at a fair price? It may be. But I prefer to wait for a better price or more evidence of a durable moat. Packaging is competitive, and customers can shift. I would keep TPL on a watchlist and buy with discipline.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer