Stock Price Movement and Market Context
On 10 December 2025, Tainwala Chemicals & Plastics (India) traded at ₹162.5, opening at this level and maintaining it throughout the day. This price is just 1.42% above its 52-week low of ₹160.2, signalling a persistent weakness in the stock’s valuation. The stock has experienced a nine-day consecutive decline prior to this modest gain, indicating a recent trend reversal after a prolonged period of downward pressure.
Despite this, the stock outperformed its sector by 1.81% on the day, though it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests that the stock is trading in a bearish zone relative to its short- and long-term price trends.
In contrast, the broader market index, Sensex, opened flat and traded slightly lower by 0.05%, standing at 84,625.33 points. The Sensex remains close to its 52-week high of 86,159.02, just 1.81% away, and is supported by bullish moving averages with the 50-day average above the 200-day average. This divergence highlights the underperformance of Tainwala Chemicals & Plastics (India) relative to the overall market.
Financial Performance and Valuation Metrics
Over the last year, Tainwala Chemicals & Plastics (India) has recorded a stock price decline of 46.68%, contrasting with the Sensex’s positive return of 3.82% during the same period. The stock’s 52-week high was ₹318.35, underscoring the extent of the price contraction.
From a fundamental perspective, the company’s long-term financial indicators reveal mixed signals. The average Return on Equity (ROE) stands at 3.33%, which is modest and points to limited profitability relative to shareholder equity. Operating profit has shown a compound annual growth rate of 19.01% over the past five years, indicating some growth in core earnings.
However, the company’s ability to cover interest expenses is weak, with an average EBIT to interest ratio of -2.17, suggesting challenges in servicing debt obligations. The latest ROE figure is 4.3%, while the Price to Book Value ratio is 0.9, indicating that the stock is trading at a discount relative to its book value but may be considered expensive when factoring in profitability levels.
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Profitability and Sales Growth
Despite the stock’s price decline, the company has reported positive financial results in recent quarters. Net sales for the first nine months stand at ₹11.73 crores, reflecting a growth rate of 60.47%. Profit after tax (PAT) for the latest six-month period is ₹6.69 crores, with a growth rate of 58.91%. The quarterly earnings per share (EPS) reached a high of ₹4.15, indicating improved profitability on a per-share basis.
These figures suggest that while the stock price has been under pressure, the company’s underlying business has demonstrated some resilience and expansion in revenue and earnings.
Valuation and Market Comparison
The stock’s Price to Earnings to Growth (PEG) ratio is 0.2, which is relatively low and may indicate undervaluation when considering earnings growth. However, the stock’s valuation remains very expensive relative to its ROE, which is a key measure of profitability. Compared to its peers in the Plastic Products - Industrial sector, Tainwala Chemicals & Plastics (India) is trading at a discount to average historical valuations, reflecting the market’s cautious stance.
Over the past year, the stock has underperformed the BSE500 index, which generated a return of 0.58%, while Tainwala Chemicals & Plastics (India) recorded negative returns of 46.68%. This underperformance highlights the challenges faced by the company in aligning with broader market gains.
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Shareholding and Industry Position
The majority of shares in Tainwala Chemicals & Plastics (India) are held by promoters, indicating concentrated ownership. The company operates within the Plastic Products - Industrial sector, which has seen varied performance across its constituents.
While the stock price has declined significantly over the past year, the company’s recent quarterly results show positive trends in sales and profitability. This contrast between market valuation and financial performance may reflect broader market sentiment and sector-specific factors influencing investor behaviour.
Summary of Key Metrics
To summarise, Tainwala Chemicals & Plastics (India) has reached a 52-week low price of ₹160.2, trading below all major moving averages. The stock’s one-year return stands at -46.68%, compared with a 3.82% gain in the Sensex. Financially, the company has shown growth in net sales and profits over recent quarters, with an EPS of ₹4.15 in the latest quarter. However, long-term profitability metrics such as ROE remain modest, and the company’s interest coverage ratio indicates challenges in debt servicing.
These factors collectively contribute to the stock’s current valuation and market position within the Plastic Products - Industrial sector.
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