Current Rating and Its Significance
MarketsMOJO’s 'Hold' rating for National Plastic Technologies Ltd indicates a neutral stance on the stock at present. This suggests that while the company demonstrates certain strengths, there are also factors that warrant caution, and investors should consider maintaining their existing positions rather than initiating new ones or exiting holdings aggressively. The rating was adjusted on 10 December 2025, reflecting a recalibration of the company’s overall investment appeal based on a comprehensive assessment of multiple parameters.
Here’s How the Stock Looks Today
As of 05 January 2026, National Plastic Technologies Ltd holds a Mojo Score of 64.0, which corresponds to the 'Hold' grade. This score reflects a moderate investment quality, balancing positive attributes with some areas of concern. The company operates within the Plastic Products - Industrial sector and is classified as a microcap, which can imply higher volatility and risk compared to larger peers.
Quality Assessment
The company’s quality grade is assessed as average. This is supported by a high management efficiency, demonstrated by a robust Return on Capital Employed (ROCE) of 15.37%. Such a figure indicates that the company is generating solid returns on the capital invested in its operations, a positive sign for long-term sustainability. Additionally, National Plastic Technologies has exhibited healthy long-term growth, with net sales increasing at an annual rate of 36.86%, underscoring its ability to expand revenue streams consistently.
Valuation Perspective
Valuation metrics currently appear attractive. The stock trades at a discount relative to its peers’ average historical valuations, with an enterprise value to capital employed ratio of 2. This suggests that investors are paying a reasonable price for the company’s capital base. Despite this, the price-to-earnings growth (PEG) ratio stands at 3, indicating that the stock may be somewhat expensive relative to its earnings growth rate. This mixed valuation picture contributes to the 'Hold' rating, signalling that while the stock is not overvalued, it may not offer significant upside at current levels.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial grade for National Plastic Technologies Ltd is positive. The latest data shows that profits have increased by 6.1% over the past year, despite the stock’s 1-year return being negative at -29.70%. This divergence suggests that while the company’s earnings are improving, the market has not fully recognised this growth in the share price. The company’s operating profit to interest ratio reached a high of 5.55 times in the September 2025 quarter, indicating strong coverage of interest expenses and financial stability. Furthermore, the dividend per share (DPS) is at its highest level of Rs 1.50, with a dividend payout ratio of 10.10%, signalling a shareholder-friendly approach with room for sustainable dividend payments.
Technical Outlook
From a technical standpoint, the stock is mildly bullish. Short-term price movements show mixed results, with a 1-month decline of 9.11% but a 3-month gain of 7.36% and a 6-month gain of 3.78%. The year-to-date change is marginally positive at +0.07%, while the 1-week return is slightly negative at -0.51%. These fluctuations reflect some volatility but also suggest potential for recovery or consolidation in the near term. The technical grade supports a cautious approach, consistent with the 'Hold' rating.
Shareholding and Market Capitalisation
National Plastic Technologies Ltd remains majority-owned by promoters, which often implies stable control and alignment of interests with long-term shareholders. The company’s microcap status means it may be subject to greater price swings and liquidity considerations, factors that investors should weigh carefully when considering exposure.
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What This Rating Means for Investors
For investors, the 'Hold' rating on National Plastic Technologies Ltd suggests a balanced view. The company’s solid management efficiency, attractive valuation relative to peers, and positive financial trends provide a foundation for stability. However, the stock’s recent price performance and valuation nuances indicate limited immediate upside potential. Investors currently holding the stock may consider maintaining their positions while monitoring developments closely, whereas new investors might prefer to wait for clearer signs of momentum or improved valuation metrics before committing capital.
Summary
In summary, National Plastic Technologies Ltd’s current 'Hold' rating reflects a nuanced investment case. The company demonstrates commendable operational efficiency and growth, alongside an attractive valuation framework. Yet, the stock’s recent price volatility and moderate technical signals counsel prudence. As of 05 January 2026, this rating provides a comprehensive view for investors seeking to understand the stock’s current standing within the Plastic Products - Industrial sector.
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