All Time Plastics Ltd Upgraded to Hold on Improved Valuation and Financial Metrics

Valuation Upgrade Drives Rating Change

The primary catalyst for the upgrade was a significant improvement in the company’s valuation grade, which shifted from 'Fair' to 'Attractive'. At a current price of ₹210.40, All Time Plastics trades at a price-to-earnings (PE) ratio of 29.14, which, while higher than some peers, is supported by a robust return on capital employed (ROCE) of 15.16% and a return on equity (ROE) of 7.95%. The price-to-book value stands at a moderate 2.32, indicating reasonable market pricing relative to net asset value.

Comparatively, industry peers such as Finolex Industries hold a 'Fair' valuation with a PE of 22.4 and EV/EBITDA of 17.95, while others like Shaily Engineering are deemed 'Very Expensive' with a PE exceeding 53. The company’s EV to EBITDA ratio of 12.80 further underscores its relatively attractive valuation within the sector.

Financial Trend: Stability Amid Flat Quarterly Performance

Despite the upgrade, All Time Plastics reported flat financial performance in Q3 FY25-26, with profits after tax (PAT) for the latest six months at ₹16.47 crores, reflecting a decline of 35.23% compared to the previous period. However, the company has demonstrated a modest 6% growth in profits over the past year, signalling underlying resilience.

Long-term sales growth remains moderate, with net sales increasing at an annualised rate of 12.20% over the last five years. This steady but unspectacular growth has contributed to the cautious stance on the company’s financial trend, which remains stable but not accelerating.

Quality Assessment: High Management Efficiency but Mixed Growth Signals

All Time Plastics maintains a high-quality profile, supported by a strong ROCE of 21.36%, which indicates efficient capital utilisation by management. However, the ROE of 8% is modest, reflecting moderate profitability relative to shareholder equity. The company’s Mojo Score stands at 50.0, with a Mojo Grade upgraded to Hold from Sell, signalling a neutral stance on quality with room for improvement.

Institutional investor participation has declined slightly, with a 0.95% reduction in stake over the previous quarter, now holding 13.37% collectively. This reduction may reflect cautious sentiment among sophisticated investors, who typically have greater resources to analyse fundamentals.

Technicals and Market Performance

Technically, the stock has underperformed the broader market over recent periods. It has declined by 4.28% on the day of the rating change, closing at ₹210.40, down from the previous close of ₹219.80. The 52-week high of ₹334.80 contrasts sharply with the current price, indicating significant downside from peak levels.

Returns over the short term have been weak, with a one-week loss of 6.88% and a one-month decline of 14.1%, both exceeding the Sensex’s respective losses of 3.33% and 7.73%. Year-to-date, the stock has fallen 20.53%, compared to the Sensex’s 8.98% decline. These figures highlight the stock’s recent volatility and relative underperformance.

Peer Comparison and Relative Valuation

Within the Plastic Products - Industrial sector, All Time Plastics’ valuation is more attractive than several peers. For instance, Time Technoplast is also rated 'Attractive' with a PE of 18.61 and EV/EBITDA of 10.18, while EPL Ltd is considered 'Very Attractive' with a PE of 15.03 and EV/EBITDA of 7.29. Conversely, companies like Safari Industries and Prince Pipes are classified as 'Very Expensive' or 'Expensive' with PE ratios above 48 and 63 respectively.

The company’s PEG ratio is reported as 0.00, which may indicate either a lack of earnings growth or data unavailability, warranting cautious interpretation. Dividend yield data is not available, which may affect income-focused investors’ interest.

Outlook and Investor Considerations

While the upgrade to Hold reflects improved valuation and stable financial metrics, investors should remain cautious given the flat recent quarterly results and subdued price performance. The company’s moderate long-term sales growth and declining institutional interest suggest that momentum may be limited in the near term.

However, the attractive valuation relative to peers and strong capital efficiency provide a foundation for potential recovery, especially if management can reignite growth and improve profitability metrics. The current Mojo Grade of Hold indicates a balanced risk-reward profile, suitable for investors seeking exposure to the plastic products sector without aggressive growth expectations.

Summary of Key Metrics

As of 9 March 2026, All Time Plastics Ltd’s key financial and valuation metrics are:

• PE Ratio: 29.14
• Price to Book Value: 2.32
• EV to EBIT: 16.67
• EV to EBITDA: 12.80
• ROCE: 15.16%
• ROE: 7.95%
• Mojo Score: 50.0 (Hold)
• Market Cap Grade: 3
• Institutional Holding: 13.37% (down 0.95% QoQ)

These figures underpin the revised investment stance and provide a comprehensive view of the company’s current position within its sector.

Conclusion

The upgrade of All Time Plastics Ltd’s investment rating to Hold is primarily driven by an improved valuation grade, reflecting more attractive pricing relative to earnings and capital employed. Despite flat recent financial results and a challenging market environment, the company’s efficient capital management and reasonable valuation metrics justify a neutral rating. Investors should monitor upcoming quarterly results and institutional participation trends to gauge future momentum.

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