National Plastic Industries Ltd Falls to 52-Week Low of Rs.44.88

Stock Price Movement and Market Context

On 2 Feb 2026, National Plastic Industries Ltd opened with a gap down of 3.03%, continuing a downward trajectory that culminated in an intraday low of Rs.44.88, representing a 5.71% drop from the previous close. This decline was sharper than the sector’s performance, with the stock underperforming the Plastic Products - Industrial sector by 4.05% on the day.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. In contrast, the Sensex recovered strongly after a negative start, gaining 1,110.78 points to trade at 81,666.46, up 1.17% for the day. Mega-cap stocks led this rally, highlighting a divergence between large-cap market leaders and smaller industrial stocks such as National Plastic Industries Ltd.

Long-Term Performance and Valuation Metrics

Over the past year, National Plastic Industries Ltd has delivered a negative return of 29.68%, significantly lagging the Sensex’s positive 5.37% gain over the same period. The stock’s 52-week high was Rs.72, underscoring the extent of the recent decline.

Fundamental analysis reveals several factors contributing to the subdued performance. The company’s long-term growth has been modest, with net sales increasing at an annualised rate of just 2.37% over the last five years. Return on Capital Employed (ROCE) remains weak at an average of 9.91%, indicating limited efficiency in generating returns from invested capital.

Debt servicing capacity is also a concern, with a high Debt to EBITDA ratio of 3.52 times, suggesting elevated leverage relative to earnings. These financial metrics have influenced the company’s Mojo Grade, which was downgraded from Strong Sell to Sell on 17 Dec 2025, reflecting a cautious stance on the stock’s prospects.

Recent Financial Highlights

Despite the stock’s price weakness, National Plastic Industries Ltd reported positive earnings growth in the nine months ending September 2025. Profit after tax (PAT) rose sharply by 414.71% to Rs.3.50 crores, while the quarterly earnings per share (EPS) reached a high of Rs.1.77. These figures indicate some improvement in profitability in the near term.

The company’s ROCE for the recent period improved slightly to 10.7%, accompanied by a very attractive valuation metric with an enterprise value to capital employed ratio of 1. This suggests that, relative to its capital base, the stock is trading at a discount compared to its peers’ historical averages.

However, the price-to-earnings-to-growth (PEG) ratio stands at zero, reflecting the disconnect between earnings growth and share price performance. Over the past year, while profits have increased by 199.4%, the stock price has declined, highlighting market scepticism about the sustainability of earnings improvements.

Shareholding and Market Capitalisation

Promoters remain the majority shareholders of National Plastic Industries Ltd, maintaining significant control over the company’s strategic direction. The stock holds a Market Cap Grade of 4, indicating a relatively modest market capitalisation within its sector.

The Mojo Score of 32.0 and the Sell grade reflect the current market assessment of the company’s fundamentals and price momentum, signalling caution among market participants.

Comparative Performance and Sector Positioning

National Plastic Industries Ltd’s performance over the last three years and one year has been below the BSE500 index, indicating underperformance relative to a broad market benchmark. The stock’s sector, Plastic Products - Industrial, has seen mixed results, with some peers maintaining steadier valuations and growth trajectories.

The company’s subdued sales growth and leverage metrics contrast with the sector’s overall dynamics, where companies with stronger capital efficiency and lower debt levels have generally fared better.

While the Sensex’s 50-day moving average remains above its 200-day moving average, signalling a positive medium-term trend for the broader market, National Plastic Industries Ltd’s share price remains entrenched below all key moving averages, underscoring the challenges it faces in regaining investor confidence.

Summary of Key Financial Ratios

Return on Capital Employed (ROCE): 9.91% average long term, 10.7% recent period

Net Sales Growth (5 years CAGR): 2.37%

Debt to EBITDA Ratio: 3.52 times

Profit After Tax (9M Sep 2025): Rs.3.50 crores, growth of 414.71%

EPS (Quarterly): Rs.1.77

Mojo Score: 32.0 (Sell, downgraded from Strong Sell on 17 Dec 2025)

Market Cap Grade: 4

Conclusion

National Plastic Industries Ltd’s fall to a 52-week low of Rs.44.88 reflects a combination of subdued long-term growth, elevated leverage, and persistent underperformance relative to market benchmarks and sector peers. Despite recent improvements in profitability and valuation metrics, the stock remains under pressure, trading below all major moving averages and continuing to lag broader market gains.

These factors collectively contribute to the cautious market stance on the stock, as reflected in its current Mojo Grade and score. The company’s majority promoter shareholding and recent financial results provide some context to its valuation, but the overall market sentiment remains subdued.

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