Machino Plastics Limited

Consumer Cyclical — Auto Parts · BSE

₹273.00−₹4.00 (−1.44%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:51 pm

Understanding the Business

Company site ↗

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

What does this company do?

Machino Plastics Limited manufactures and sells plastic injection moulded automotive components in India. It operates through two segments, Plastic Injection Moulding Parts and Moulds & Dies.

IndustryAuto Parts

SectorConsumer Cyclical

Employees563

Annual revenue₹491 Cr

How does it make money?

Turns over ₹491 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 563 employees supports ₹87.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹87.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. 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 6.5% 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 ROE23.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +49% while net margin moved -44% 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+49%

Margin effect-44%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.83x is high — earnings must service borrowings before shareholders see anything
✗ Current ratio of 0.77 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 1.1x — little room if profits dip
✗ Debt has grown 41.9% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

30/ 100

Weak

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

Valuation

37/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

13650.0x

3Y Median

42.2x

40 monthly readings · mean 56.7x · range 16.2x–134.3x

Sector Median

45.7x

median of 4 sector peers

⚠️Current valuation is approximately 32252% above its 3y median of 42.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 29762% above the peer median of 45.7x.

vs. its own history

Expensive

42.2x median over 40 months · +32252%

vs. sector peers

Expensive

45.7x median of 4 peers · +29762%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

11.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 12.1% to 6.5% — often a sign of competition or overexpansion.

Red Flags

8 items require attention · 5 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 186% over 3 years, from ₹88 Cr to ₹250 Cr.
🔴High leverageFinancial
Debt/Equity of 1.83x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 106% against revenue up 49% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 144% against revenue up 49% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.0x to 1.1x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹43 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.77 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

The debt load needs earnings to hold up
Debt is 7.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 106% against revenue up 49%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 32252% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.

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

1Revenue growth stays above 11% a year✓ 14.1% CAGR
Latest reported year was 17.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 7.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹43 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 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 · 2 neutral · 6 weak

Market Cap

₹168 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13650.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.22x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.02

Profitable

Profitable on a per-share basis

ROE

1.0%

Weak

Weak capital efficiency

ROCE

6.5%

Weak

Low return on total capital employed

Debt/Equity

1.83x

High

High leverage

Revenue Growth (YoY)

17.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-65.6%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹43 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

5.5%

Average

Average margins

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.77

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.50

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

284.3 / 272.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

33.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹330 Cr	₹336 Cr	₹387 Cr	₹491 Cr	+14.1%
EBITDA	₹21 Cr	₹26 Cr	₹33 Cr	₹36 Cr	+19.3%
EBITDA Margin	6.4%	7.8%	8.4%	7.3%	—
PAT (Net Profit)	₹2 Cr	₹4 Cr	₹9 Cr	₹1 Cr	-6.1%
EPS	₹2.6	₹6.02	₹13.94	₹2.16	-6.0%
ROE	3.1%	6.8%	13.5%	1.0%	—
ROCE	12.1%	14.1%	14.1%	6.5%	—
Total Debt	₹88 Cr	₹88 Cr	₹180 Cr	₹250 Cr	+41.9%
Free Cash Flow	₹13 Cr	₹4 Cr	-₹78 Cr	-₹43 Cr	—

🟢 Revenue has grown at 14.1% a year over 3 years.

🟢 EBITDA has grown at 19.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.3% over 3 years.

🔴 PAT (Net Profit) has shrunk at 6.1% a year over 3 years.

🔴 EPS has shrunk at 6.0% a year over 3 years.

🔴 ROE has fallen from 3.1% to 1.0% over 3 years (-2.2 pts).

🔴 ROCE has fallen from 12.1% to 6.5% over 3 years (-5.6 pts).

🔴 Total Debt has grown at 41.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹13 Cr to -₹43 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹556 Cr

Total Liabilities

₹419 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹41 Cr

Capex

-₹84 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.6%

Corporate Actions

Ex-Dividend Date

05 Aug 2019

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive1 mixed2 negative2 general

Machino Plastics Share Price rises 10.51% on latest move

Univest, 21 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.

Machino Plastics Q1 Results: Net profit drops 66% YoY to ₹68.45 lakh

scanx.trade, 12 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Machino Plastics standalone net profit declines 92.86% in the March 2026 quarter

Business Standard, 01 JunResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Machino Plastics sets Sept 29 AGM; revenue up 26.6% in FY26

scanx.trade, 21 AugResults

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

BIMETAL Stock Price and Chart — NSE:BIMETAL

TradingView, 20 Apr

Machino Plastics Limited Clarifies Non-Applicability of SEBI Debt Securities Circular

scanx.trade, 16 Apr

Watch Items

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

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑