Tokyo Plast International Ltd Stock Hits 52-Week Low Amidst Continued Underperformance

Stock Price Movement and Market Context

On 20 Feb 2026, Tokyo Plast International Ltd opened with a gap up of 6.25%, reaching an intraday high of Rs 96.95. Despite this initial gain, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent downtrend. The stock’s intraday volatility was notably high at 5.86%, underscoring the unsettled trading environment.

While the broader market, represented by the Sensex, recovered sharply from an early negative opening to close 0.47% higher at 82,884.20, Tokyo Plast’s performance contrasts with the market’s upward momentum. The Sensex is currently 3.95% below its 52-week high of 86,159.02, supported by mega-cap stocks leading the gains. In comparison, Tokyo Plast has underperformed significantly over the past year, with a negative return of 19.21% versus the Sensex’s positive 9.44%.

Financial Performance and Key Ratios

Tokyo Plast’s financial metrics reveal several areas of concern. The company’s long-term fundamental strength remains weak, with an average Return on Capital Employed (ROCE) of just 2.09%. This figure is considerably below industry standards and indicates limited efficiency in generating returns from capital investments.

Net sales have exhibited modest growth, increasing at an annual rate of 5.23% over the last five years. However, recent quarterly results show a decline, with net sales falling by 9.2% to Rs 17.14 crores in the December 2025 quarter compared to the previous four-quarter average. Operating profit to interest coverage for the same quarter was at a low 1.94 times, highlighting constrained earnings relative to interest obligations.

The company’s Profit Before Tax excluding other income (PBT less OI) was negative at Rs -0.03 crores in the latest quarter, marking a challenging period for profitability. Additionally, the debt servicing capacity remains limited, with a high Debt to EBITDA ratio of 4.09 times, indicating elevated leverage and potential strain on cash flows.

Long-Term and Recent Performance Trends

Over the past three years, Tokyo Plast International Ltd has consistently underperformed the BSE500 index, reflecting persistent challenges in growth and profitability. The stock’s 1-year return of -19.21% further emphasises this trend, contrasting sharply with the broader market’s positive trajectory.

The company’s Mojo Score currently stands at 14.0, with a Mojo Grade of Strong Sell as of 21 Jan 2026, an upgrade from the previous Sell rating. This grading reflects the deteriorated financial health and market sentiment surrounding the stock. The Market Cap Grade is rated at 4, indicating a relatively modest market capitalisation compared to peers.

Valuation and Comparative Metrics

Despite the subdued performance, Tokyo Plast International Ltd exhibits some valuation attributes that may be considered attractive. The company’s ROCE has improved to 4.3%, and it trades at an Enterprise Value to Capital Employed ratio of 1.3, suggesting a discount relative to its capital base. The stock’s price-to-earnings growth (PEG) ratio stands at 1.3, reflecting a valuation that is not excessively stretched compared to its profit growth.

Profits have risen by 48% over the past year, a positive development amid the broader challenges. However, this improvement has not translated into share price gains, as the stock remains at a significant discount to its 52-week high of Rs 161.

Sector and Industry Positioning

Tokyo Plast International Ltd operates within the diversified consumer products sector, which has seen mixed performance in recent periods. The company’s relative underperformance compared to sector peers is evident in its stock price trajectory and financial ratios. While the broader sector has benefited from market tailwinds, Tokyo Plast’s challenges have limited its ability to capitalise on these favourable conditions.

The company’s market cap and liquidity metrics place it in a mid-tier position within the sector, with a Market Cap Grade of 4. This positioning may influence investor perception and trading activity, particularly in comparison to larger, more liquid peers.

Summary of Key Financial Indicators

To summarise, Tokyo Plast International Ltd’s key financial indicators as of early 2026 are as follows:

• 52-week low price: Rs 96.95
• 52-week high price: Rs 161
• 1-year stock return: -19.21%
• Average ROCE (long term): 2.09%
• ROCE (recent): 4.3%
• Debt to EBITDA ratio: 4.09 times
• Net sales growth (5-year CAGR): 5.23%
• Quarterly net sales (Dec 2025): Rs 17.14 crores, down 9.2%
• Operating profit to interest coverage (Q4 2025): 1.94 times
• PBT less other income (Q4 2025): Rs -0.03 crores
• Mojo Score: 14.0 (Strong Sell)
• Market Cap Grade: 4

These figures collectively illustrate the financial pressures faced by the company and the resultant impact on its stock price, culminating in the recent 52-week low.

Trading Activity and Volatility

Trading activity on 20 Feb 2026 showed a notable gap up at market open, with the stock rising 6.25% to Rs 96.95. However, this gain was insufficient to reverse the longer-term downtrend. The stock’s high intraday volatility of 5.86% reflects investor uncertainty and fluctuating sentiment. Despite outperforming its sector by 6.17% on the day, Tokyo Plast remains below critical moving averages, indicating that the broader trend remains negative.

Conclusion

Tokyo Plast International Ltd’s fall to a 52-week low of Rs 96.95 is underpinned by a combination of subdued sales growth, constrained profitability, and elevated leverage. While some valuation metrics suggest the stock is trading at a discount relative to capital employed and peers, the overall financial profile remains challenged. The stock’s recent performance contrasts with the broader market’s gains, highlighting the company’s ongoing difficulties within the diversified consumer products sector.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today