Swashthik Plascon Limited

Consumer Cyclical — Packaging & Containers · BSE

₹18.60−₹0.20 (−1.06%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 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

Company site ↗

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

What does this company do?

Swashthik Plascon Limited imports, exports, manufactures, deals, sells, and buys various kinds of plastic raw materials, products, and related machinery in India.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees66

Annual revenue₹153 Cr

How does it make money?

Turns over ₹153 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 66 employees supports ₹2.32 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin15.9%

Net margin5.2%

Revenue / employee₹2.32 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.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 11.3% 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.

ROCE11.3%

ROE9.0%

Peer median ROE25.9%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +236% while net margin moved -21% 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+236%

Margin effect-21%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 9.0% is weak
✗ ROE has fallen by 6.2 points over the period

Quality vs. Valuation

Company Quality

55/ 100

Average

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 reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

4.5x

3Y Median

11.3x

36 monthly readings · mean 18.9x · range 5.2x–64.9x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 60% below its 3y median of 11.3x. 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 93% below the peer median of 69.2x.

vs. its own history

Cheap

11.3x median over 36 months · -60%

vs. sector peers

Cheap

69.2x median of 4 peers · -93%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

4.5x

P/B

0.39x

EV/EBITDA

5.1x

PEG

0.12

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 13.7% to 15.9% over 3 years.
Cash generation is improving
Free cash flow is up 150% over 3 years.
Valuation below its historical average
At 4.5x the stock trades 60% below its own median of 11.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 49% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 14.8% to 8.6% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 49% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 13.7% to 15.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 60% 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 93% 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?

The debt load needs earnings to hold up
Debt is 3.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 14.8% to 8.6%. 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.
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 37% a year✓ 49.8% CAGR
Latest reported year was 7.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 15.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 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 · 6 neutral · 1 weak

Market Cap

₹36 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.5x

Cheap

Cheap against the generic band

P/B Ratio

0.39x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.13

Profitable

Profitable on a per-share basis

ROE

9.0%

Moderate

Moderate capital efficiency

ROCE

11.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.94x

Moderate

Moderate leverage

Revenue Growth (YoY)

7.0%

Modest

Modest growth

Profit Growth (YoY)

11.4%

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

-₹17 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹18.6

ROA

5.1%

Average

Average asset productivity

Operating Margin

11.1%

Average

Average margins

Net Margin

5.2%

Average

Average bottom-line conversion

Current Ratio

2.08

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

20.1 / 21.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹46 Cr	₹126 Cr	₹144 Cr	₹153 Cr	+49.8%
EBITDA	₹6 Cr	₹18 Cr	₹21 Cr	₹24 Cr	+57.5%
EBITDA Margin	13.7%	14.6%	14.3%	15.9%	—
PAT (Net Profit)	₹3 Cr	₹8 Cr	₹7 Cr	₹8 Cr	+38.6%
EPS	₹1.72	₹4.29	₹3.57	—	—
ROE	14.8%	11.8%	8.2%	8.6%	—
ROCE	10.3%	12.8%	9.1%	11.3%	—
Total Debt	₹59 Cr	₹54 Cr	₹85 Cr	₹88 Cr	+14.2%
Free Cash Flow	₹1 Cr	-₹29 Cr	-₹42 Cr	₹1 Cr	+35.8%

🟢 Revenue has grown at 49.8% a year over 3 years.

🟢 EBITDA has grown at 57.5% a year over 3 years.

🟢 EBITDA Margin has risen from 13.7% to 15.9% over 3 years (+2.2 pts).

🟢 PAT (Net Profit) has grown at 38.6% a year over 3 years.

🔴 ROE has fallen from 14.8% to 8.6% over 3 years (-6.2 pts).

🟡 ROCE has held roughly flat at 11.3% over 3 years.

🔴 Total Debt has grown at 14.2% a year over 3 years.

🟢 Free Cash Flow has grown at 35.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹221 Cr

Total Liabilities

₹128 Cr

Total Debt

₹88 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹34 Cr

Capex

-₹32 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.9%

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

2 mixed4 general

Compare with

Equitymaster, 11 Oct

Swashthik Plascon closes trading window from Oct 1 ahead of Q2FY27 results

scanx.trade, 29 SeptResults

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

Swashthik Plascon promoters acquire 1.52 lakh shares in open market

scanx.trade, 22 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Swashthik Plascon Limited share price debuts with 40% premium at ₹120.10 on BSE SME

Livemint, 05 Dec

Swasthik Plascon Limited Responds to BSE Inquiry on Share Price Movement

scanx.trade, 08 Apr

Swashthik Plascon Ltd Peer Comparison – Compare with Others

Value Research, 02 Sept

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate10.5/20

🟡Financial HealthAdequate11.8/20

🟡GrowthModest12.9/20

🔴ProfitabilityWeak5.8/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓Revenue growth stays above 37% a year49.8% CAGR
✓EBITDA margin holds above 14%15.9%
✗Debt / EBITDA falls below 3x3.6x
✗Interest cover stays above 3x2.6x
✓Free cash flow remains positive₹1 Cr