Ddev Plastiks Industries Limited

Basic Materials — Specialty Chemicals · NSE

₹264.95+₹4.73 (+1.82%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Ddev Plastiks Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ddev Plastiks Industries Limited manufactures and sells customized compounds in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees413

Annual revenue₹2,948 Cr

How does it make money?

Turns over ₹2,948 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 413 employees supports ₹7.14 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin10.8%

Net margin6.8%

Revenue / employee₹7.14 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 27.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.9% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE27.7%

ROE19.9%

Peer median ROE22.3%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 28.9% and earnings to grow about 29.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+28.9%

Est. earnings growth+29.5%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +18% while net margin moved +65% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+18%

Margin effect+65%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of -0.03 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

58/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

75/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

12.8x

2Y Median

15.1x

23 monthly readings · mean 15.0x · range 10.6x–18.9x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 15% below its 2y median of 15.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 68% below the peer median of 40.4x.

vs. its own history

Fair

15.1x median over 23 months · -15%

vs. sector peers

Cheap

40.4x median of 4 peers · -68%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.8x

P/B

2.70x

EV/EBITDA

8.7x

PEG

0.52

Dividend Yield

0.66%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 7.1% to 10.8% over 3 years.
High return on capital employed
ROCE of 27.7% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 31.8% to 27.7% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 53% against revenue growth of 18% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 80% against revenue growth of 18% — stock may not be moving.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 5.61x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 80% against revenue up 18% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹11 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 53% against revenue up 18% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 7.1% to 10.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 68% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 5.61x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 53% against revenue up 18%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 5.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 9%✓ 10.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹11 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 5.6% CAGR
Latest reported year was 28.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 25%✓ 27.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹2,742 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.8x

Cheap

Cheap against the generic band

P/B Ratio

2.70x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹20.62

Profitable

Profitable on a per-share basis

ROE

19.9%

Strong

Strong capital efficiency

ROCE

27.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.61x

High

High leverage

Revenue Growth (YoY)

28.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

22.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.66%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹264.95

P/E (Forward)

8.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.7%

Average

Average margins

Net Margin

6.7%

Average

Average bottom-line conversion

Current Ratio

2.70

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.03

Defensive

Steadier than the market

52W Range Position

60%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

254.4 / 266.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,504 Cr	₹2,431 Cr	₹2,603 Cr	₹2,948 Cr	+5.6%
EBITDA	₹179 Cr	₹274 Cr	₹280 Cr	₹318 Cr	+21.1%
EBITDA Margin	7.1%	11.3%	10.8%	10.8%	—
PAT (Net Profit)	₹104 Cr	₹182 Cr	₹185 Cr	₹202 Cr	+24.7%
EPS	₹9.15	₹17.56	₹17.93	₹19.5	+28.7%
ROE	21.1%	27.5%	22.2%	19.9%	—
ROCE	31.8%	38.0%	30.6%	27.7%	—
Total Debt	₹56 Cr	₹66 Cr	₹46 Cr	₹57 Cr	+0.4%
Free Cash Flow	₹117 Cr	₹93 Cr	₹79 Cr	-₹11 Cr	—

🟢 Revenue has grown at 5.6% a year over 3 years.

🟢 EBITDA has grown at 21.1% a year over 3 years.

🟢 EBITDA Margin has risen from 7.1% to 10.8% over 3 years (+3.6 pts).

🟢 PAT (Net Profit) has grown at 24.7% a year over 3 years.

🟢 EPS has grown at 28.7% a year over 3 years.

🔴 ROE has fallen from 21.1% to 19.9% over 3 years (-1.1 pts).

🔴 ROCE has fallen from 31.8% to 27.7% over 3 years (-4.1 pts).

🟡 Total Debt has been broadly flat over 3 years (0.4% a year).

🔴 Free Cash Flow has turned negative, from ₹117 Cr to -₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,444 Cr

Total Liabilities

₹430 Cr

Total Debt

₹57 Cr

Cash & Equivalents

₹43 Cr

Operating Cash Flow

₹85 Cr

Capex

-₹96 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

82.2%

Corporate Actions

Dividend Rate

₹1.75

Ex-Dividend Date

18 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹320

+20.8% vs CMP

Target Range

₹320 – ₹320

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

2 positive2 mixed2 general

Earnings Release: Here's Why Analysts Cut Their Ddev Plastiks Industries Limited (NSE:DDEVPLSTIK) Price Target To ₹320

Simply Wall Street, 29 MayAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Ddev Plastiks New Unit Boosts Capacity

HDFC Sky, 28 Apr

Ddev Plastiks Industries: Best Stock in Its Sector? Key Metrics

Univest, 24 Sept

DDev Plastiks Industries hosts Q1FY27 earnings call on Aug 11

scanx.trade, 03 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

DDev Plastiks Industries standalone net profit rises 22.32% in the June 2026 quarter

Business Standard, 11 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

DDev Plastiks Q4 Profit Rises 5.4% to ₹54.5 Cr Amid Steady Polymer Demand

Sahi, 25 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate9.6/20

🟡Financial HealthAdequate10.6/20

🟢GrowthStrong13.1/20

🟢ProfitabilityStrong10.2/15

🟢ValuationAttractive10.4/15

🔴RiskHigh4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 9%10.8%
✗Free cash flow remains positive-₹11 Cr
✓Revenue growth stays above 4% a year5.6% CAGR
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 25%27.7%