National Plastic Industries Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · BSE

₹35.46−₹0.27 (−0.76%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:04 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

National Plastic Industries Limited manufactures and markets moulded plastic furniture and allied products under the NATIONAL brand name in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees188

Annual revenue₹101 Cr

How does it make money?

Turns over ₹101 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 188 employees supports ₹54.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin12.4%

Net margin3.4%

Revenue / employee₹54.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

VOLTAS LTDP/E 75.8x · ROE 7.0%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

What is its competitive advantage?Little sign of one

Returns on capital of 14.3% 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.

ROCE14.3%

ROE7.6%

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -8% while net margin moved -13% 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-8%

Margin effect-13%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.7% a year
✗ Profit has declined at 7.3% a year
✗ Latest-year revenue growth of -29.4% is below the longer-term trend — momentum is fading
✗ Profit fell 27.7% in the latest year

Quality vs. Valuation

Company Quality

43/ 100

Weak

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.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

10.0x

3Y Median

19.2x

40 monthly readings · mean 21.7x · range 9.2x–40.6x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 48% below its 3y median of 19.2x. 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 85% below the peer median of 68.5x.

vs. its own history

Cheap

19.2x median over 40 months · -48%

vs. sector peers

Cheap

68.5x median of 3 peers · -85%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.0x

P/B

0.71x

EV/EBITDA

4.6x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 39% over 3 years.
Valuation below its historical average
At 10.0x the stock trades 48% below its own median of 19.2x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 12.0% to 7.6% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 20% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 39% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 48% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 85% 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?

Returns on shareholder capital are falling
ROE has dropped from 12.0% to 7.6%. 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.
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

1EBITDA margin holds above 10%✓ 12.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 11%✓ 14.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 4.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹32 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.0x

Cheap

Cheap against the generic band

P/B Ratio

0.71x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.53

Profitable

Profitable on a per-share basis

ROE

7.6%

Weak

Weak capital efficiency

ROCE

14.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.52x

Low

Conservative leverage

Revenue Growth (YoY)

-29.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-27.7%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹35.46

Operating Margin

6.8%

Average

Average margins

Net Margin

3.3%

Average

Average bottom-line conversion

Current Ratio

2.00

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.11

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

38.4 / 39.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

24.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹110 Cr	₹97 Cr	₹95 Cr	₹101 Cr	-2.7%
EBITDA	₹13 Cr	₹11 Cr	₹10 Cr	₹13 Cr	-1.5%
EBITDA Margin	12.0%	11.8%	10.6%	12.4%	—
PAT (Net Profit)	₹4 Cr	₹2 Cr	₹4 Cr	₹3 Cr	-7.3%
EPS	₹4.76	₹1.77	₹2.44	₹3.79	-7.3%
ROE	12.0%	4.2%	9.0%	7.6%	—
ROCE	16.0%	12.7%	11.8%	14.3%	—
Total Debt	₹41 Cr	₹42 Cr	₹27 Cr	₹25 Cr	-15.1%
Free Cash Flow	₹9 Cr	₹14 Cr	₹6 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 2.7% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-1.5% a year).

🟡 EBITDA Margin has held roughly flat at 12.4% over 3 years.

🔴 PAT (Net Profit) has shrunk at 7.3% a year over 3 years.

🔴 EPS has shrunk at 7.3% a year over 3 years.

🔴 ROE has fallen from 12.0% to 7.6% over 3 years (-4.4 pts).

🔴 ROCE has fallen from 16.0% to 14.3% over 3 years (-1.7 pts).

🟢 Total Debt has shrunk at 15.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹9 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹82 Cr

Total Liabilities

₹36 Cr

Total Debt

₹25 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.3%

Corporate Actions

Ex-Dividend Date

12 Sept 2019

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 positive2 mixed1 negative2 general

National Plastic Technologies Share Price Falls 10.77% Today

Univest, 09 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.

National Plastic Industries Q1 Results: Net profit falls to ₹62.53 lakh

scanx.trade, 11 AugResults

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

National Plastic Industries Ltd. Share Price Live Today

CNBC TV18, 03 Jan

National Plastic Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

National Plastic Technologies Share Price rises 8.13% today

Univest, 23 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.

National Plastic Technologies revenue up 10% in FY26 to ₹341.20 crore

scanx.trade, 29 AugResults

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

Watch Items

Revenue growth is negative (-29.4%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate10.5/20

🟡Financial HealthAdequate12.8/20

🔴GrowthWeak4.1/20

🔴ProfitabilityWeak4.6/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4/10

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low.

This thesis breaks if

✓EBITDA margin holds above 10%12.4%
✗Free cash flow remains positive-₹1 Cr
✓Debt / EBITDA stays below 2x2.0x
✓ROCE stays above 11%14.3%
✓Interest cover stays above 4x4.4x