MANIKA PLASTECH LIMITED

Consumer Cyclical — Packaging & Containers · NSE

₹49.35−₹2.62 (−5.04%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Manika Plastech Limited manufactures and sell polymer packaging products in India. The company offers precision battery casings, injection moulded plastic pail buckets, thinwall containers, water bottles, and detergent containers.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees363

Annual revenue₹436 Cr

How does it make money?

Turns over ₹436 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 363 employees supports ₹1.20 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.20 Cr

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?Some evidence

ROCE of 22.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +10% while net margin moved +80% 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+10%

Margin effect+80%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

69/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

25.7x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 63% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -63%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.1x

PEG

1.01

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 9.2% to 12.8% over 3 years.
Cash generation is improving
Free cash flow is up 55% over 3 years.
Return on equity is rising
ROE has improved from 11.5% to 15.2%.
High return on capital employed
ROCE of 22.2% 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 Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 watch

🟡Debt is increasingFinancial
Total debt is up 45% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 43% against revenue up 10% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.2% 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 9.2% to 12.8%. 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 63% 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?

Growth barely outpaces inflation
Revenue compounding at 3.2% 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.

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

1EBITDA margin holds above 11%✓ 12.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✓ 3.8x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 4% a year✗ 3.2% CAGR
Latest reported year was 7.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹25 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

9 / 10 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

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹575 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.7x

Fair

Fairly valued against the generic band

P/B Ratio

2.99x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.92

Profitable

Profitable on a per-share basis

ROE

16.4%

Strong

Strong capital efficiency

ROCE

22.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.64x

Moderate

Moderate leverage

Revenue Growth (YoY)

7.3%

Modest

Modest growth

Profit Growth (YoY)

15.9%

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

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

8.6%

Good

Assets are working hard

Operating Margin

13.0%

Average

Average margins

Net Margin

5.1%

Average

Average bottom-line conversion

Current Ratio

1.13

Adequate

Adequate, but no real cushion

52W Range Position

45%

Mid-range

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹396 Cr	₹360 Cr	₹406 Cr	₹436 Cr	+3.2%
EBITDA	₹36 Cr	₹35 Cr	₹52 Cr	₹56 Cr	+15.1%
EBITDA Margin	9.2%	9.7%	12.7%	12.8%	—
PAT (Net Profit)	₹11 Cr	₹12 Cr	₹19 Cr	₹22 Cr	+25.6%
EPS	₹0.97	₹0.99	₹1.66	—	—
ROE	11.5%	10.7%	15.4%	15.2%	—
ROCE	21.0%	14.8%	21.7%	22.2%	—
Total Debt	₹67 Cr	₹100 Cr	₹107 Cr	₹97 Cr	+13.2%
Free Cash Flow	₹16 Cr	-₹19 Cr	₹13 Cr	₹25 Cr	+15.6%

🟢 Revenue has grown at 3.2% a year over 3 years.

🟢 EBITDA has grown at 15.1% a year over 3 years.

🟢 EBITDA Margin has risen from 9.2% to 12.8% over 3 years (+3.6 pts).

🟢 PAT (Net Profit) has grown at 25.6% a year over 3 years.

🟢 ROE has risen from 11.5% to 15.2% over 3 years (+3.7 pts).

🟢 ROCE has risen from 21.0% to 22.2% over 3 years (+1.2 pts).

🔴 Total Debt has grown at 13.2% a year over 3 years.

🟢 Free Cash Flow has grown at 15.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹324 Cr

Total Liabilities

₹176 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹44 Cr

Capex

-₹19 Cr

Shareholding (proxy)

Institutional Holding

5.7%

Insider Holding

77.6%

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

1 mixed5 general

Compare DUTRON POLY. with

Equitymaster, 18 Oct

Manika Plastech shares list flat at IPO price; should you buy, sell or hold?

Moneycontrol.com, 21 Sept

MANIKA Share Price Declines; Sector Benchmarks in Focus

Univest, 13 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Manika Plastech (MANIKA) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Manika Plastech Listing Falls Flat, Stock Slips 5% on Debut

northdesk.in, 12 Oct

Compare with SONAL ADHESIVES

Equitymaster, 18 Oct

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑