Understanding the Current Rating
The 'Hold' rating assigned to National Plastic Technologies Ltd indicates a neutral stance for investors. It suggests that while the stock may not be an immediate buy opportunity, it is not a sell candidate either. Investors are advised to maintain their current holdings and monitor the company’s performance closely. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals.
Quality Assessment
As of 25 December 2025, National Plastic Technologies Ltd exhibits an average quality grade. The company demonstrates high management efficiency, reflected in a robust Return on Capital Employed (ROCE) of 15.37%. This level of ROCE indicates effective utilisation of capital to generate profits, which is a positive sign for long-term sustainability. Additionally, the company has shown healthy long-term growth, with net sales increasing at an annual rate of 36.86%. These factors contribute to a stable quality profile, though not exceptional enough to warrant a more bullish rating.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Valuation Perspective
The valuation grade for National Plastic Technologies Ltd is currently attractive. The stock trades at a discount relative to its peers’ average historical valuations, supported by an Enterprise Value to Capital Employed ratio of 2. This suggests that the market is pricing the company conservatively, potentially offering value for investors willing to hold through volatility. The company’s ROCE of 16.2 further supports this valuation, indicating that the firm is generating solid returns on its capital base despite the subdued market sentiment.
Financial Trend and Performance
Financially, the company maintains a positive trend. The latest quarterly results for September 2025 reveal strong operational metrics, including an operating profit to interest coverage ratio of 5.55 times, which is the highest recorded for the company. Dividend per share (DPS) stands at Rs 1.50, with a dividend payout ratio of 10.10%, signalling a shareholder-friendly approach. Despite these positives, the stock has underperformed the broader market over the past year. As of 25 December 2025, National Plastic Technologies Ltd has delivered a negative return of -36.89%, while the BSE500 index has generated a positive return of 6.20% over the same period. This divergence highlights market concerns or sector-specific challenges that have weighed on the stock price.
Technical Analysis
From a technical standpoint, the stock exhibits mildly bullish signals. Although the short-term price movements have been volatile—with a one-day decline of -7.58% and a one-month drop of -9.60%—the three-month and six-month returns are modestly positive at +0.57% and +2.68% respectively. This suggests some underlying resilience and potential for recovery. However, the overall trend remains cautious, aligning with the 'Hold' rating and advising investors to watch for clearer directional cues before increasing exposure.
Implications for Investors
For investors, the 'Hold' rating on National Plastic Technologies Ltd implies a balanced risk-reward profile. The company’s solid fundamentals and attractive valuation provide a foundation for potential upside, but the recent underperformance and mixed technical signals counsel prudence. Investors currently holding the stock may consider maintaining their positions while monitoring quarterly results and market developments closely. New investors might wait for more definitive signs of momentum or improvement in returns before initiating fresh positions.
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Company Overview and Market Context
National Plastic Technologies Ltd operates within the Plastic Products - Industrial sector and is classified as a microcap company. The majority shareholding is held by promoters, which often provides stability in governance and strategic direction. The company’s recent financial performance, including a 6.1% rise in profits over the past year, indicates operational strength despite the stock’s price weakness. The PEG ratio of 3 suggests that the stock’s price may be high relative to its earnings growth, which could be a factor in the cautious rating.
Summary of Key Metrics as of 25 December 2025
To summarise, the stock’s key metrics include:
- Mojo Score: 64.0 (Hold grade)
- ROCE: 15.37%
- Net Sales Growth: 36.86% annualised
- Operating Profit to Interest Coverage: 5.55 times
- DPS: Rs 1.50 with a payout ratio of 10.10%
- Stock Returns: 1Y at -36.89%, YTD at -31.66%
These figures illustrate a company with solid operational fundamentals but facing market headwinds reflected in its share price performance.
Conclusion
National Plastic Technologies Ltd’s 'Hold' rating by MarketsMOJO reflects a nuanced view of the company’s current standing. While the fundamentals and valuation offer reasons for cautious optimism, the stock’s recent price underperformance and mixed technical signals suggest investors should adopt a watchful approach. Maintaining existing holdings while awaiting clearer signs of recovery or further fundamental improvements is the prudent course for most investors at this stage.
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