Promact Plastics Limited

Industrials — Conglomerates · BSE

₹16.19+₹0.59 (+3.78%)

DalalBaazaar Score

16 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, though profits are falling even as sales grow. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Promact Plastics Limited engages in the rental of godowns, and commission and brokerage business in India. It is involved in the HDPE/ PP woven fabrics, bags, tarpaulin, import and export of agro commodities, minerals, metals, and other.

IndustryConglomerates

SectorIndustrials

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹-449 reaches shareholders as profit, with ₹-136 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -90% while net margin moved -1470% 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-90%

Margin effect-1470%

DalalBaazaar Score

16/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

15/ 100

Weak

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

Valuation

30/ 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

0.7x

3Y Median

16.7x

40 monthly readings · mean 29.9x · range 7.4x–85.2x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 96% below its 3y median of 16.7x. 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 99% below the peer median of 88.8x.

vs. its own history

Cheap

16.7x median over 40 months · -96%

vs. sector peers

Cheap

88.8x median of 3 peers · -99%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 90% over 3 years.
Cash generation is improving
Free cash flow is up 178% over 3 years.

🔴 What Needs Attention0

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

Red Flags

6 items require attention · 4 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.6x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 213.6 points, from 77.9% to -135.7%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.3x to -0.6x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.54 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 90% 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 96% 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 99% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 77.9% to -135.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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
4 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

1EBITDA margin holds above -138%✓ -135.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -0.6x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Valuation vs its own median of 16.7x✓ 0.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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 · 4 neutral · 3 weak

Market Cap

₹11 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

0.7x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹24.37

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

6767.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-676.6%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-0.5%

Weak

Thin margins leave little room for error

Net Margin

304.7%

Good

Strong bottom-line conversion

Current Ratio

0.54

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

82%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

15.8 / 12.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹2 Cr	₹1 Cr	₹0 Cr	-53.3%
EBITDA	₹1 Cr	₹2 Cr	₹1 Cr	-₹0 Cr	—
EBITDA Margin	77.9%	85.4%	69.2%	-135.7%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹0 Cr	-₹1 Cr	—
EPS	₹0.8	₹1.38	₹0.19	₹-1.11	—
Total Debt	₹5 Cr	₹4 Cr	₹4 Cr	₹1 Cr	-53.0%
Free Cash Flow	₹1 Cr	₹2 Cr	₹0 Cr	₹4 Cr	+40.6%

🔴 Revenue has shrunk at 53.3% a year over 3 years.

🔴 EBITDA has turned negative, from ₹1 Cr to -₹0 Cr.

🔴 EBITDA Margin has fallen from 77.9% to -135.7% over 3 years (-213.6 pts).

🔴 PAT (Net Profit) has turned negative, from ₹1 Cr to -₹1 Cr.

🔴 EPS has turned negative, from ₹0.8 to ₹-1.11.

🟢 Total Debt has shrunk at 53.0% a year over 3 years.

🟢 Free Cash Flow has grown at 40.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7 Cr

Total Liabilities

₹9 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

56.8%

Corporate Actions

Ex-Dividend Date

23 Aug 2005

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed1 negative4 general

Promact Plastics re-appoints Ankit J. Patel as Managing Director

scanx.trade, 17 Jul

Promact Plastics (BSE:526494) - Stock Analysis

Simply Wall Street, 22 Oct

Compare with PROMACT PLAS

Equitymaster, 23 Sept

Promact Plastics Limited Submits Q4FY26 Compliance Certificate Under SEBI Regulations

scanx.trade, 08 Apr

Promact Plastics' Secretarial Auditor M/s. Nishant Pandya & Associates Resigns with Immediate Effect

scanx.trade, 06 MayManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

Q4 results 2026: BEL to LIC among 500 companies to declare Q4 results next week; full list here

Livemint, 17 MayResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

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

Points for each in the Score ↑

Avoid until solvency is resolved

Promact Plastics Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 4 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑