RATING

RECOMMENDATION

Strong Buy

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Strong Buy

RATING

RECOMMENDATION

Strong Buy

  • Resins and Plastics Growth

Get complete analysis on Resins and Plastics Unlisted Shares & Information Like- Revenue Growth, Net Profit Growth, EPS Growth, Operating Profit Growth, & Resins and Plastics Board of Directors.

Resins and Plastics Revenue Growth

Growth in %

  • 6.14%

    1 Year

  • 4.55%

    3 Year

  • 5.17%

    5 Year

The company has received approval for the higher production from Statutory Authorities during FY21, which boost up their market foot prints and increased production and sale during FY21. Domestic sales improved by 5% and foreign sales improved by 23% leading to improvement in overall revenue by 6%. 

Resins and Plastics Net Profit Growth(PAT)

Growth in %

  • 36.28%

    1 Year

  • 22.38%

    3 Year

  • 19.21%

    5 Year

In FY21, manufacturing improvement, higher production with the use of R&D towards existing products and new products, and the generation of alternate suppliers' and low-cost sources have been a major thrust in improving the overall profitability of the company. Revenue per unit of expense has increased from 1.09 to 1.12, resulting in net profit growth of 36% from the previous year. 

Resins and Plastics EPS Growth

Growth in %

  • 36.25%

    1 Year

  • 16.21%

    3 Year

  • 15.57%

    5 Year

There has been a significant improvement in the EPS of the company even though it has raised its total shares outstanding by 17% owing to the amalgamation with Pragati Chemicals. The EPS improved primarily due to an increase in the net income of the company. The increase in net income is due to diligent investments in R&D to improve operating efficiencies.

  • Resins and Plastics Book Value Growth

Growth in %

  • 24.08%

    1 Year

  • 21.01%

    3 Year

  • 18.39%

    5 Year

The company had issued 6,00,000 Equity Shares of Rs 10 each in the ratio of 5 equity shares for every 3 shares held by shareholders of Pragati Chemical Limited pursuant to the scheme of amalgamation in FY21, which increased the book value of the company by 6% from previous year.

Resins and Plastics EBITDA Growth

Growth in %

  • 39.48%

    1 Year

  • 19.02%

    3 Year

  • 16.66%

    5 Year

The gross revenue of the company has increased by 6%, while the total expenses of the company only grew by 3%. Lower expenses per unit of revenue have fallen from 0.91 to 0.88 from FY20, which has massively pushed up the EBITDA in terms of absolute values, leading to 38% growth in EBITDA.

Resins and Plastics Operating Profit Growth

Growth in %

  • 41.10%

    1 Year

  • 19.60%

    3 Year

  • 17.45%

    5 Year

Resins and Plastics Asset Growth

Growth in %

  • 12.30%

    1 Year

  • 17.77%

    3 Year

  • 15.87%

    5 Year

In FY21, the company increased its fixed assets by 20%, contributing towards the R&D facility of the firm. It must be noted that the company has increased its current asset base by 12% from the previous year to carry out its R&D in specific areas to create synergies in the operations and better products for clients leading to overall 12% increase in total assets.

Resins and Plastics Cash Flow from Operations

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

Trade receivables in FY21 has increased significantly, due to which cash received is less in this year as compared to previous years. It indicates that the firm was incapable of collecting the amount during the times of COVID-19 leading to negative cash flow from operation for FY21. 

  • Resins and Plastics Solvency Ratios

Resins & Plastics' solvency ratios are excellent since the firm has no long-term debt, resulting in a debt/equity ratio of zero, and its interest coverage ratio is high enough to meet its interest expenses, which shows positive sign for the company in the long run.

Resins and Plastics D/E Ratio

Resins and Plastics Current Ratio

Current Ratio is also very good for the company which shows excellent ability of the company to pay off its current liabilities.

Resins and Plastics Quick Ratio

Quick ratio for the company witness marginal decline from previous years as inventories in FY21 were Rs 5 Cr greater than FY20. 

Resins and Plastics Interest Coverage Ratio

The interest coverage ratio of the company has fallen from the previous year, but it is still in very good condition to handle its outstanding debt. Interest coverage primarily declined due to the rise in interest expense. In FY20, interest expense was only Rs 36,000 which rose to Rs. 4.6 lakhs in FY21, even though the EBIT of the company improved by 41% from the previous year.

  • Resins and Plastics Operating Efficiency

All the operating efficiency ratios witnessed improvement in FY21 as the economy is recovering from the COVID-19 negative externality. The management has been able to improve its revenue from operations in the later quarters of FY21 as well as the operating efficiency of the company, thus improving the ratios altogether. The raw material prices witnessed high volatility and continuous increased trend during the year. With close monitoring of raw material and demand along with timely purchase, the company was able to improve efficiencies during FY21.

Resins and Plastics Operating Profit EBIT Margin(OPM)

Resins and Plastics Profit Before Tax Margin (PBT Margin)

Profit before tax for the company has remained stable over the years except in 2020 due to pandemic. 2021 was a good year for the company as they were able to generate higher PBT due to recovery of the plastics and chemical sector.

Resins and Plastics Profit After Tax Margin (PAT Margin)

Net profit margin has increased constantly over the years, which shows that the management is quite efficient at converting sales into profit due to lower costs and higher margins with consistent improvement in the quality of the products they sell.

  • Resins and Plastics Profitablity Ratio

Profitability of the company is stable and good as compared to the industry; profitability took a great hit during 2020 due to the pandemic. The company recovered quite impressively in 2021 when economy started recovering. 

Resins and Plastics Return on Equity(RoE)

The company's return on equity ratio has improved significantly. Although the company has raised its total equity by 14%, the net income of the company showed enough improvement to generate a higher income, thus leading to a higher ROE compared to the previous year. 

Resins and Plastics Return on Capital Employed(RoCE)

The current liability of the firm rose by 9% against the total assets, which grew by 12%, leading to higher capital employed by the firm by 13% from the previous year, but the net profit of the company rose by 36%, which improved the ROCE of the company.

Resins and Plastics Return to Assets (RoA)

The company's overall asset base increased by 12%, attributable primarily to an increase in current assets. The ROA of the company improved dramatically as these current assets were utilised to fund the company's R&D projects, which resulted in higher net profits.

  • Resins and Plastics Valuation Ratios

Resins and Plastics Dividend Yield

Resins and Plastics Earning Yield