Ecoplast Limited

Consumer Cyclical — Packaging & Containers · BSE

₹499.90+₹11.90 (+2.44%)

DalalBaazaar Score

56 / 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: Reasonable but unspectacular business quality, 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, 6:55 pm

Understanding the Business

Company site ↗

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

What does this company do?

Ecoplast Limited, together with its subsidiary, Synergy Films Private Limited, manufactures, processes, and sells co-extruded plastic films for packaging and industrial applications in India and internationally.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees244

Annual revenue₹221 Cr

How does it make money?

Turns over ₹221 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 244 employees supports ₹90.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹90.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +130% while net margin moved +18% 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+130%

Margin effect+18%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROCE of 13.2% is adequate but not distinctive
✗ ROCE has fallen by 6.3 points — returns are eroding
✗ EBITDA margin of 9.6% is thin — little cushion if costs rise
✗ Net margin of 5.4% is slim
• Revenue has compounded at 31.9% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

70/ 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

18.9x

3Y Median

18.3x

40 monthly readings · mean 18.4x · range 10.6x–40.8x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 18.3x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 73% below the peer median of 69.2x.

vs. its own history

Fair

18.3x median over 40 months · +3%

vs. sector peers

Cheap

69.2x median of 4 peers · -73%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.1x

PEG

0.48

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 6.6% to 9.6% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 13.3% to 10.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.5% to 13.2% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 61% over 3 years, from ₹1 Cr to ₹2 Cr.
🔴High leverageFinancial
Debt/Equity of 1.66x — earnings must service borrowings before shareholders see anything.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹24 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 163% against revenue up 130% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.6% to 9.6%. 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 73% 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 1.66x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 163% against revenue up 130%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 13.3% to 10.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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
2 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

1Revenue growth stays above 24% a year✓ 31.9% CAGR
Latest reported year was 84.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹24 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹238 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.9x

Fair

Fairly valued against the generic band

P/B Ratio

1.99x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹26.44

Profitable

Profitable on a per-share basis

ROE

10.0%

Moderate

Moderate capital efficiency

ROCE

13.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.66x

High

High leverage

Revenue Growth (YoY)

84.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

16.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹24 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

44.8x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

7.0%

Average

Average margins

Net Margin

5.4%

Average

Average bottom-line conversion

Current Ratio

3.56

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.13

Defensive

Steadier than the market

52W Range Position

76%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

486.7 / 471.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

55.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹96 Cr	₹113 Cr	₹207 Cr	₹221 Cr	+31.9%
EBITDA	₹6 Cr	₹14 Cr	₹24 Cr	₹21 Cr	+49.7%
EBITDA Margin	6.6%	12.7%	11.7%	9.6%	—
PAT (Net Profit)	₹4 Cr	₹9 Cr	₹14 Cr	₹12 Cr	+39.3%
EPS	₹14.82	₹30.58	₹32.63	₹25.27	+19.5%
ROE	13.3%	21.9%	13.2%	10.0%	—
ROCE	19.5%	27.5%	17.9%	13.2%	—
Total Debt	₹1 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+17.2%
Free Cash Flow	₹13 Cr	₹9 Cr	-₹1 Cr	-₹24 Cr	—

🟢 Revenue has grown at 31.9% a year over 3 years.

🟢 EBITDA has grown at 49.7% a year over 3 years.

🟢 EBITDA Margin has risen from 6.6% to 9.6% over 3 years (+3.0 pts).

🟢 PAT (Net Profit) has grown at 39.3% a year over 3 years.

🟢 EPS has grown at 19.5% a year over 3 years.

🔴 ROE has fallen from 13.3% to 10.0% over 3 years (-3.3 pts).

🔴 ROCE has fallen from 19.5% to 13.2% over 3 years (-6.3 pts).

🔴 Total Debt has grown at 17.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹13 Cr to -₹24 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹143 Cr

Total Liabilities

₹24 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹22 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.3%

Corporate Actions

Ex-Dividend Date

08 Aug 2024

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

3 mixed3 general

Ecoplast Share Price update: Ecoplast gains in today’s trade

Univest, 07 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Ecoplast Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 02 Sept

Ecoplast merger with Kunal Plastics effective from May 28

scanx.trade, 28 MayM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Ecoplast Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Ecoplast Q1 FY27 Results: Revenue Rs 63 Cr, PAT Rs 3 Cr and Key Highlights

Univest, 11 AugResults

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

Ecoplast Ltd promoters increase stake via Kunal Plastics amalgamation

scanx.trade, 15 Jun

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health · Profitability · Valuation

WeakBusiness Quality · Risk

Points for each in the Score ↑

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. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑