Incorporated in 1972 and converted to a public limited company in 1992, MPL Plastics Ltd. (formerly Milton Plastics Ltd.) once manufactured plastic and thermoware products at its Silvassa facility. However, the company has completely ceased operations, leaving it in a precarious financial position with negative shareholder equity of ₹3.53 crores as of March 2025. The current quarter's results underscore the absence of any meaningful turnaround efforts, with the company continuing to incur administrative expenses without generating revenue.
Trading at ₹9.40 per share as of November 12, 2025, MPL Plastics' stock remains under pressure, trading below all key moving averages and exhibiting a mildly bearish technical trend. With promoter holding stable at 24.00% and negligible institutional interest (0.01% mutual fund holding), the company faces significant challenges in attracting capital or implementing a revival strategy.
| Quarter | Sep'25 | Jun'25 | Mar'25 | Dec'24 | Sep'24 | Jun'24 | Mar'24 |
|---|---|---|---|---|---|---|---|
| Net Sales (₹ Cr) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Profit (₹ Cr) | -0.12 | -0.15 | -0.14 | -0.15 | -0.11 | -0.08 | 9.26 |
| QoQ Change (%) | ▼ 20.00% | ▼ 7.14% | ▲ 6.67% | ▼ 36.36% | ▼ 37.50% | ▼ 100.86% | — |
| YoY Change (%) | ▼ 9.09% | ▼ 87.50% | ▼ 101.51% | ▼ 36.36% | — | — | — |
Financial Performance: A Company Without Operations
MPL Plastics' Q2 FY26 results reflect the continuation of a dire operational situation that has persisted since the company suspended manufacturing activities. With zero revenue for the seventh consecutive quarter, the company reported a net loss of ₹0.12 crores, representing a deterioration of 20.00% quarter-on-quarter from the ₹0.15 crores loss in Q1 FY26. Year-on-year, losses widened by 9.09% compared to the ₹0.11 crores loss in Q2 FY25.
The absence of sales revenue means all reported losses stem from ongoing administrative and employee costs. In Q2 FY26, employee costs stood at ₹0.06 crores, double the ₹0.03 crores incurred in the previous quarter, suggesting minimal staffing to maintain corporate compliance. Operating profit before depreciation, interest, and tax (PBDIT) excluding other income registered at negative ₹0.13 crores, whilst other income contributed a negligible ₹0.01 crores during the quarter.
On a half-yearly basis (H1 FY26), the company accumulated total losses of ₹0.27 crores (Q1: ₹0.15 crores + Q2: ₹0.12 crores) without generating any revenue. This compares unfavourably to H1 FY25, when losses totalled ₹0.19 crores. The trend indicates accelerating cash burn despite the absence of operational activities, raising serious questions about the company's ability to continue as a going concern.
Balance Sheet Distress: Negative Equity and Eroding Assets
The company's balance sheet as of March 2025 reveals a structurally impaired financial position. Shareholder funds stand at negative ₹3.53 crores, comprising share capital of ₹12.50 crores offset by accumulated reserves and surplus of negative ₹16.03 crores. This represents a deterioration from the negative ₹3.05 crores shareholder equity reported in March 2024, as continued losses erode the capital base.
With a book value per share of negative ₹2.83, equity holders are technically underwater, meaning liabilities exceed assets on a per-share basis. The company's total assets comprise minimal fixed assets of ₹0.14 crores, investments of ₹1.04 crores, and current assets of ₹0.91 crores. Current liabilities of ₹5.09 crores include trade payables of ₹1.01 crores and other current liabilities of ₹0.64 crores.
Notably, the company carries no long-term debt, having fully extinguished the ₹103.63 crores debt burden that existed as of March 2021. This debt elimination, likely through a corporate debt restructuring or settlement process, explains the dramatic improvement in shareholder funds from negative ₹179.62 crores in March 2021 to the current negative ₹3.53 crores. However, the absence of debt also means the company has no access to credit facilities to fund any potential revival efforts.
Critical Balance Sheet Concerns
Negative Shareholder Equity: At negative ₹3.53 crores, the company's liabilities exceed its assets, indicating severe financial distress and potential insolvency risk.
Minimal Asset Base: With fixed assets of just ₹0.14 crores and negligible current assets, the company lacks the operational infrastructure to restart manufacturing activities without significant capital infusion.
No Debt Capacity: Whilst the company is debt-free, its negative equity position makes it virtually impossible to raise debt financing for any turnaround initiatives.
Profitability Metrics: Non-Existent Returns on Capital
MPL Plastics' profitability metrics paint a picture of a company unable to generate returns for shareholders. The average return on equity (ROE) stands at 0.0%, reflecting the company's consistent inability to generate profits relative to shareholder equity. With negative book value, calculating meaningful ROE becomes problematic, as the traditional formula breaks down when equity is negative.
Return on capital employed (ROCE) averaged 6.56% over recent years, but this metric is distorted by the company's unusual capital structure and the one-time extraordinary gain of ₹9.26 crores reported in March 2024 (likely related to debt settlement). On a current basis, ROCE is classified as "Negative Capital Employed," indicating that the company's operational assets are insufficient to support any meaningful business activity.
The company's five-year sales growth rate of negative 100.00% quantifies the complete collapse of business operations. From ₹21.00 crores in revenue during FY2017, sales declined to ₹4.00 crores by FY2020 and have remained at zero since FY2021. This trajectory reflects not merely a cyclical downturn but a fundamental cessation of commercial activity.
Peer Comparison: Worst Performer in Packaging Sector
When benchmarked against packaging sector peers, MPL Plastics' financial metrics underscore its outlier status as a non-operational entity. The comparison reveals the stark gulf between MPL Plastics and functional competitors in the industry.
| Company | P/E (TTM) | P/BV | ROE (%) | Debt/Equity |
|---|---|---|---|---|
| MPL Plastics | 1.04 | -3.33 | 0.0% | -0.91 |
| G K P Printing | 22.14 | 0.75 | 2.80% | 0.03 |
| Polycon Intl. | 71.92 | 3.79 | 0.0% | 8.26 |
| Anuroop Packaging | 3.58 | 0.49 | 16.36% | 0.45 |
| Kahan Packaging | 13.11 | 1.49 | 0.0% | 0.00 |
MPL Plastics' negative price-to-book value of -3.33x stands in stark contrast to peers trading at positive P/BV multiples ranging from 0.49x to 3.79x. This negative valuation metric reflects the company's negative book value, indicating that the market ascribes some residual value to the shell company despite its negative equity. The P/E ratio of 1.04x appears artificially low due to the one-time extraordinary gain in March 2024; on a normalised basis with ongoing losses, the company would show a negative P/E.
ROE comparison is particularly telling: whilst Anuroop Packaging achieves a healthy 16.36% return on equity and G K P Printing delivers 2.80%, MPL Plastics generates 0.0% returns. The company's debt-to-equity ratio of -0.91 (negative due to negative equity) further distinguishes it from peers with conventional capital structures. With a market capitalisation of just ₹12.00 crores, MPL Plastics ranks fifth amongst the peer group, reflecting its status as a distressed micro-cap entity.
Valuation Analysis: A Shell Trading at Distressed Levels
MPL Plastics' valuation metrics defy conventional analysis frameworks, as the company lacks the fundamental prerequisites for standard valuation methodologies—namely, earnings, positive book value, and operational cash flows. The stock trades at ₹9.40, down 37.33% from its 52-week high of ₹15.00 and up 23.52% from its 52-week low of ₹7.61.
The company's P/E ratio of 1.04x is artificially depressed by the one-time extraordinary gain of ₹9.26 crores reported in March 2024, which temporarily inflated trailing twelve-month earnings. Stripping out this one-off item reveals a company generating consistent losses, rendering P/E analysis meaningless. The negative price-to-book value of -3.33x indicates investors are paying ₹9.40 per share for negative book value of ₹2.83 per share—a paradoxical situation that can only be rationalised by speculative interest or hope for asset liquidation value exceeding stated book value.
Enterprise value metrics provide little insight, as EV/EBITDA of -14.96x, EV/EBIT of -14.96x, and EV/Capital Employed of -14.96x all reflect negative denominators. The overall valuation assessment is classified as "RISKY," with the quality grade downgraded to this status on April 25, 2023. No dividend yield exists, as the company has not paid dividends and maintains a 0.0% payout ratio.
Valuation Dashboard
Current Price: ₹9.40 | 52-Week Range: ₹7.61 - ₹15.00
P/E Ratio: 1.04x (distorted by one-time gain) | P/BV: -3.33x (negative book value)
Market Cap: ₹12.00 Crores | Valuation Grade: RISKY
Fair Value Estimate: Not calculable due to absence of normalised earnings and negative equity
Shareholding Pattern: Stable Promoter Base, Zero Institutional Interest
The shareholding pattern of MPL Plastics has remained remarkably stable over recent quarters, with promoter holding constant at 24.00% across the last five quarters through September 2025. Key promoters include Vaghani Madhup Bansilal (23.07%), Stead Fast Holding Pvt. Ltd. (0.44%), Indrajit Bansilal Vaghani (0.26%), and Bansilal I Vaghani (0.24%). Notably, there is zero promoter pledging, indicating promoters have not leveraged their holdings for financing.
| Quarter | Sep'25 | Jun'25 | Mar'25 | Dec'24 | Sep'24 |
|---|---|---|---|---|---|
| Promoter Holding | 24.00% | 24.00% | 24.00% | 24.00% | 24.00% |
| FII Holding | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Mutual Fund | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| Insurance | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Non-Institutional | 75.98% | 75.98% | 75.98% | 75.98% | 75.98% |
Institutional participation is virtually non-existent, with mutual funds holding a minuscule 0.01% stake (four mutual fund schemes) and zero holdings by foreign institutional investors (FIIs), insurance companies, and other domestic institutional investors (DIIs). The overwhelming 75.98% non-institutional holding suggests the stock is held primarily by retail investors and speculators, likely attracted by the low absolute share price and hope for a turnaround or asset monetisation.
The absence of institutional interest is unsurprising given the company's operational paralysis and negative equity. Institutional investors typically avoid companies without viable business models, particularly those with negative book value and no clear path to profitability. The stable shareholding pattern across quarters indicates neither promoters nor institutions are accumulating or exiting positions, suggesting the stock trades primarily on retail speculation.
Stock Performance: Severe Underperformance Across Timeframes
MPL Plastics' stock performance over the past year reflects investor recognition of the company's deteriorating fundamentals. Trading at ₹9.40 as of November 12, 2025, the stock has declined 28.52% over the past year, significantly underperforming the Sensex's 7.36% gain—a negative alpha of 35.88 percentage points.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | -0.11% | +1.21% | -1.32% |
| 1 Month | +0.86% | +2.38% | -1.52% |
| 3 Months | +9.56% | +5.27% | +4.29% |
| 6 Months | -6.00% | +2.47% | -8.47% |
| Year to Date | -23.39% | +8.10% | -31.49% |
| 1 Year | -28.52% | +7.36% | -35.88% |
| 3 Years | -41.07% | +36.69% | -77.76% |
The stock's performance relative to its packaging sector peers is equally dismal, with MPL Plastics declining 28.52% over the past year whilst the broader packaging sector fell 11.59%—an underperformance of 16.93 percentage points. This sector-relative weakness underscores investor recognition that MPL Plastics' challenges are company-specific rather than industry-wide.
Technical indicators paint a bearish picture. The stock trades below all major moving averages: 5-day MA (₹9.34), 20-day MA (₹9.44), 50-day MA (₹9.30), 100-day MA (₹9.41), and 200-day MA (₹9.91). The overall technical trend is classified as "MILDLY BEARISH," having transitioned from "Bearish" on November 10, 2025. With a beta of 1.50, the stock exhibits high volatility—50% more volatile than the broader market—amplifying downside risk during market corrections.
Risk-adjusted returns are deeply negative, with a one-year risk-adjusted return of -0.66 and volatility of 43.43% compared to the Sensex's 12.36% volatility. The stock falls into the "HIGH RISK LOW RETURN" category, offering negative returns with significantly elevated volatility—an unfavourable risk-reward profile for investors.
Investment Thesis: Multiple Red Flags Outweigh Limited Positives
MPL Plastics' investment thesis is fundamentally challenged by the company's complete operational shutdown and negative equity position. The proprietary Mojo Score of 17 out of 100 places the stock firmly in "STRONG SELL" territory, reflecting the confluence of poor financial performance, bearish technical trends, and risky valuation metrics.
The quality assessment reveals a "BELOW AVERAGE" grade, driven by negative five-year sales growth of 100.00%, average ROE of 0.0%, and weak capital efficiency metrics. Whilst the company benefits from zero debt and no promoter pledging, these positives are overshadowed by the absence of business operations and negative shareholder equity.
From a valuation perspective, the "RISKY" classification reflects the impossibility of applying traditional valuation frameworks to a company without earnings, positive book value, or cash generation. The financial trend is classified as "FLAT," a euphemistic description for a company that has consistently reported zero revenue for seven consecutive quarters. The technical trend of "MILDLY BEARISH" suggests continued downward price pressure, with the stock trading below all key moving averages.
"With operations completely suspended, negative shareholder equity, and no visible path to revival, MPL Plastics represents a speculative shell company rather than a viable operating business."
Key Strengths & Risk Factors
KEY STRENGTHS
- Debt-Free Status: The company carries zero long-term debt, having extinguished ₹103.63 crores in liabilities since March 2021.
- No Promoter Pledging: Promoters have not pledged any shares, indicating no immediate financial stress on the promoter group.
- Stable Promoter Holding: Promoter stake remains constant at 24.00% with no dilution over recent quarters.
- Low Absolute Share Price: Trading at ₹9.40, the stock offers low entry cost for speculative investors betting on asset monetisation.
KEY CONCERNS
- Complete Operational Shutdown: Zero revenue for seven consecutive quarters with no signs of revival or turnaround plan.
- Negative Shareholder Equity: Book value of negative ₹3.53 crores indicates liabilities exceed assets, raising going concern doubts.
- Continuous Losses: Quarterly losses persist despite absence of operations, driven by administrative costs.
- Zero Institutional Interest: Only 0.01% mutual fund holding with no FII or insurance participation signals lack of confidence.
- Severe Stock Underperformance: 28.52% decline over past year with negative alpha of 35.88% versus Sensex.
- High Volatility: Beta of 1.50 indicates 50% higher volatility than market, amplifying downside risk.
- No Path to Profitability: Without operational restart or asset monetisation, company cannot generate positive cash flows.
Outlook: What to Monitor
POSITIVE CATALYSTS
- Operational Restart Announcement: Any indication of manufacturing resumption at Silvassa facility would be significant positive.
- Asset Sale or Monetisation: Liquidation of assets at values exceeding book value could provide shareholder recovery.
- Strategic Partnership or Acquisition: Entry of strategic investor or acquisition by larger player could unlock value.
- Debt Restructuring Completion: Final resolution of any remaining liabilities could improve balance sheet.
RED FLAGS TO WATCH
- Continued Quarterly Losses: Persistent cash burn without revenue generation threatens remaining asset base.
- Further Equity Erosion: Deepening negative book value would worsen shareholder position.
- Promoter Exit or Dilution: Any reduction in promoter stake would signal loss of confidence in revival prospects.
- Delisting or Suspension Risk: Extended operational paralysis could trigger regulatory action or exchange delisting.
- Liquidation Proceedings: Formal winding-up or insolvency proceedings would likely result in total shareholder loss.
The outlook for MPL Plastics remains highly uncertain. Without a concrete turnaround plan, capital infusion, or asset monetisation strategy, the company faces an existential crisis. Investors should monitor quarterly results for any indication of operational restart, track promoter actions for signals of commitment or exit, and watch for any corporate announcements regarding strategic alternatives. The current trajectory suggests continued value erosion absent decisive intervention.
The Verdict: Avoid This Distressed Shell
Mojo Score: 17/100
For Fresh Investors: Avoid entirely. The company has ceased operations, carries negative equity, and shows no credible path to revival. The stock represents pure speculation on asset liquidation value or turnaround that has not materialised despite years of operational paralysis.
For Existing Holders: Consider exiting at current levels or any technical bounce. With seven consecutive quarters of zero revenue, negative book value, and no announced revival plan, the risk of permanent capital loss substantially outweighs any speculative upside. The 28.52% decline over the past year may continue absent catalysts.
Fair Value Estimate: Not calculable due to absence of earnings, negative equity, and non-operational status. Current price of ₹9.40 appears to reflect speculative interest rather than fundamental value.
Note- ROCE= (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions. MPL Plastics represents a high-risk, distressed situation with significant potential for permanent capital loss. Past performance is not indicative of future results.
