Mega Flex Plastics Limited

Sector n/a · NSE

₹35.70−₹1.85 (−4.93%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, 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, 6:08 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

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

How does it make money?

Turns over ₹78 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation.

EBITDA margin12.6%

Net margin9.3%

What is its competitive advantage?Some evidence

ROCE of 15.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.3%

ROE11.6%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +48% while net margin moved +128% 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+48%

Margin effect+128%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

88/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

4.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 5.7% to 12.6% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 4.8% to 11.6%.
Return on capital is rising
ROCE has improved from 6.6% to 15.3%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 114% against revenue growth of 48% — customers are taking longer to pay.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 3.12x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 114% against revenue up 48% — 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 5.7% to 12.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 3.12x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 114% against revenue up 48%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
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 11% a year✓ 14.0% CAGR
Latest reported year was 29.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹16 Cr
Profit that never becomes cash eventually stops being profit.
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 12%✓ 15.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹43 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

11.6%

Moderate

Moderate capital efficiency

ROCE

15.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.12x

High

High leverage

Revenue Growth (YoY)

29.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

112.3%

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

₹16 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹35.7

Gross Margin

18.3%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

9.3%

Average

Average bottom-line conversion

Current Ratio

5.35

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

118.0 / 105.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹53 Cr	₹48 Cr	₹60 Cr	₹78 Cr	+14.0%
EBITDA	₹3 Cr	₹1 Cr	₹4 Cr	₹10 Cr	+48.9%
EBITDA Margin	5.7%	1.9%	7.4%	12.6%	—
PAT (Net Profit)	₹2 Cr	₹1 Cr	₹3 Cr	₹7 Cr	+50.1%
EPS	₹2	₹1.27	₹3.1	—	—
ROE	4.8%	3.0%	6.2%	11.6%	—
ROCE	6.6%	3.7%	8.3%	15.3%	—
Total Debt	—	—	₹1 Cr	₹2 Cr	—
Free Cash Flow	-₹6 Cr	-₹2 Cr	-₹6 Cr	₹16 Cr	—

🟢 Revenue has grown at 14.0% a year over 3 years.

🟢 EBITDA has grown at 48.9% a year over 3 years.

🟢 EBITDA Margin has risen from 5.7% to 12.6% over 3 years (+7.0 pts).

🟢 PAT (Net Profit) has grown at 50.1% a year over 3 years.

🟢 ROE has risen from 4.8% to 11.6% over 3 years (+6.8 pts).

🟢 ROCE has risen from 6.6% to 15.3% over 3 years (+8.8 pts).

🟢 Free Cash Flow has turned positive, from -₹6 Cr to ₹16 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹73 Cr

Total Liabilities

₹11 Cr

Total Debt

₹2 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹18 Cr

Capex

-₹1 Cr

Recent News

1 mixed5 general

We Ran A Stock Scan For Earnings Growth And Mega Flex Plastics (NSE:MEGAFLEX) Passed With Ease

Simply Wall Street, 15 OctResults

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

Mega Flex Plastics Upper Circuit Streak: Day 2 Price and Data

Univest, 06 Oct

Mega Flex Plastics Ltd

Equitypandit, 26 Mar

NSE seeks clarification over unusual fluctuations in several stocks

Traders Union, 15 Oct

BHAVIK ENTERPRISES LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

Mega Flex Plastics (NSE:MEGAFLEX) Company Profile: Flexible Packaging Overview

Kalkine India, 17 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟢Business QualityStrong14.5/20

🟢Financial HealthStrong13.9/20

🟢GrowthStrong16.1/20

🟡ProfitabilityModerate9.6/15

🟡ValuationFair7.5/15

🔴RiskHigh2.4/10

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

This thesis breaks if

✓Revenue growth stays above 11% a year14.0% CAGR
✓EBITDA margin holds above 11%12.6%
✓Free cash flow remains positive₹16 Cr
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 12%15.3%