Why is Prima Plastics Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.05 times
2
Poor long term growth as Net Sales has grown by an annual rate of 7.98% and Operating profit at 16.29% over the last 5 years
3
Flat results in Jun 26
- PAT(Q) At Rs 2.92 cr has Fallen at -17.3%
4
With ROE of 10.9, it has a Very Attractive valuation with a 0.8 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 14.55%, its profits have risen by 15.4% ; the PEG ratio of the company is 0.3
5
Majority shareholders : Promoters
6
Market Beating Performance
- Even though the market (BSE500) has generated negative returns of -2.96% in the last 1 year, the stock has been able to generate 14.55% returns
How much should you hold?
- Overall Portfolio exposure to Prima Plastics should be less than 10%
- Overall Portfolio exposure to Diversified consumer products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified consumer products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Prima Plastics for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Prima Plastics
14.55%
0.28
52.64%
Sensex
-9.4%
-0.70
13.49%
Quality key factors
Factor
Value
Sales Growth (5y)
7.98%
EBIT Growth (5y)
16.29%
EBIT to Interest (avg)
6.16
Debt to EBITDA (avg)
2.07
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
0.93
Tax Ratio
29.71%
Dividend Payout Ratio
11.05%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.08%
ROE (avg)
10.70%
Valuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
32
Price to Book Value
0.84
EV to EBIT
6.58
EV to EBITDA
5.14
EV to Capital Employed
0.84
EV to Sales
0.81
PEG Ratio
0.28
Dividend Yield
1.40%
ROCE (Latest)
10.97%
ROE (Latest)
10.85%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
Technical Movement
7What is working for the Company
OPERATING CF(Y)
Highest at Rs 18.70 Cr
PBT LESS OI(Q)
At Rs 8.73 cr has Grown at 41.03%
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 31.85 cr
DEBTORS TURNOVER RATIO(HY)
Highest at 5.59 times
-2What is not working for the Company
PAT(Q)
At Rs 2.92 cr has Fallen at -17.3%
Loading Valuation Snapshot...
Here's what is working for Prima Plastics
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 8.73 cr has Grown at 41.03%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Cash Flow - Annually
Highest at Rs 18.70 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 31.85 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Highest at 5.59 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Prima Plastics
Profit After Tax (PAT) - Quarterly
At Rs 2.92 cr has Fallen at -17.3%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)






