BSE:530589

Stock Analysis Report

Executive Summary

Prima Plastics Limited designs, manufactures, and sells plastic molded furniture in India.

Snowflake

Fundamentals

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Prima Plastics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-6.1%

530589

1.5%

IN Consumer Durables

1.6%

IN Market


1 Year Return

-37.4%

530589

10.9%

IN Consumer Durables

0.8%

IN Market

Return vs Industry: 530589 underperformed the Indian Consumer Durables industry which returned 10.9% over the past year.

Return vs Market: 530589 underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

530589IndustryMarket
7 Day-6.1%1.5%1.6%
30 Day-13.4%9.1%1.5%
90 Day-9.1%9.1%-3.3%
1 Year-36.5%-37.4%11.4%10.9%2.7%0.8%
3 Year-70.3%-71.4%34.1%32.1%22.0%16.0%
5 Year105.7%91.0%134.5%128.0%42.3%29.3%

Price Volatility Vs. Market

How volatile is Prima Plastics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Prima Plastics undervalued compared to its fair value and its price relative to the market?

9.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 530589 (₹64.55) is trading above our estimate of fair value (₹10.54)

Significantly Undervalued: 530589 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 530589 is good value based on its PE Ratio (9.2x) compared to the Consumer Durables industry average (22.6x).

PE vs Market: 530589 is good value based on its PE Ratio (9.2x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 530589's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 530589 is good value based on its PB Ratio (0.8x) compared to the IN Consumer Durables industry average (1.3x).


Next Steps

Future Growth

How is Prima Plastics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 530589's forecast earnings growth (11.3% per year) is above the savings rate (7.6%).

Earnings vs Market: 530589's earnings (11.3% per year) are forecast to grow slower than the Indian market (18.3% per year).

High Growth Earnings: 530589's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 530589's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 530589's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 530589's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Prima Plastics performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 530589's earnings have declined by -0.7% per year over the past 5 years.

Accelerating Growth: 530589's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 530589 had negative earnings growth (-18.9%) over the past year, making it difficult to compare to the Consumer Durables industry average (5.2%).


Return on Equity

High ROE: 530589's Return on Equity (8.8%) is considered low.


Return on Assets

ROA vs Industry: 530589 has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: 530589's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Prima Plastics's financial position?


Financial Position Analysis

Short Term Liabilities: 530589's short term assets (₹745.3M) exceeds its short term liabilities (₹353.2M)

Long Term Liabilities: 530589's short term assets (745.3M) exceeds its long term liabilities (75.5M)


Debt to Equity History and Analysis

Debt Level: 530589's debt to equity ratio (36.3%) is considered satisfactory

Reducing Debt: 530589's debt to equity ratio has increased from 17.1% to 36.3% over the past 5 years.

Debt Coverage: 530589's debt is well covered by operating cash flow (31.8%).

Interest Coverage: 530589's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

Inventory Level: 530589 has a high level of physical assets or inventory.

Debt Coverage by Assets: 530589's debt is covered by short term assets (assets are 2.302410x debt).


Next Steps

Dividend

What is Prima Plastics's current dividend yield, its reliability and sustainability?

1.55%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%0.6%markettop25%2.5%industryaverage0.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 530589's dividend (1.55%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 530589's dividend (1.55%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

Stable Dividend: 530589 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 530589 has only been paying a dividend for 9 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.3%), 530589's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Prima Plastics's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Dilip Parekh (50yo)

0yrs

Tenure

₹6,319,874

Compensation

Mr. Dilip Manharlal Parekh has been the Managing Director of Prima Plastics Ltd. since July 1, 2005 and serves as its Chief Executive Officer. Mr. Parekh has 18 years of experience in Plastic Industries.  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Dilip's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Dilip's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: 530589's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

18.8yrs

Average Tenure

63yo

Average Age

Experienced Board: 530589's board of directors are seasoned and experienced ( 18.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Dilip Parekh (50yo)

    CEO, MD & Director

    • Tenure: 0yrs
    • Compensation: ₹6.32m
  • Bhaskar Parekh (63yo)

    Executive Chairman

    • Tenure: 14.3yrs
    • Compensation: ₹6.32m
  • Nidhi Shah

    Company Secretary & Compliance Officer

    • Tenure: 1.8yrs
    • Compensation: ₹541.84k
  • Paras Parekh

    Chief Marketing Officer

    • Tenure: 12.5yrs
  • Pratik Parekh

    Vice President of Marketing & Sales

    • Tenure: 0yrs
  • Dharmesh Sachade

    Chief Financial Officer

    • Tenure: 0.9yrs
    • Compensation: ₹2.40m

Board Members

  • Krishnakant Chitalia (80yo)

    Independent Non- Executive Director

    • Tenure: 23.3yrs
    • Compensation: ₹110.00k
  • Dilip Parekh (50yo)

    CEO, MD & Director

    • Tenure: 0yrs
    • Compensation: ₹6.32m
  • Rasiklal Doshi (90yo)

    Independent Non-Executive Director

    • Tenure: 23.3yrs
    • Compensation: ₹60.00k
  • Bhaskar Parekh (63yo)

    Executive Chairman

    • Tenure: 14.3yrs
    • Compensation: ₹6.32m
  • Hina Mehta (60yo)

    Non Executive Director

    • Tenure: 4.4yrs
    • Compensation: ₹80.00k
  • Snehal Muzoomdar (63yo)

    Additional Independent Director

    • Tenure: 0.8yrs

Company Information

Prima Plastics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prima Plastics Limited
  • Ticker: 530589
  • Exchange: BSE
  • Founded: 1993
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: ₹734.800m
  • Shares outstanding: 11.00m
  • Website: https://www.primaplastics.com

Location

  • Prima Plastics Limited
  • 41, National House
  • Chandivali Junction
  • Mumbai
  • Maharashtra
  • 400072
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530589BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2002

Biography

Prima Plastics Limited designs, manufactures, and sells plastic molded furniture in India. The company provides chairs, baby chairs, tables, dining tables, stools, trolleys, tepoys, and other baby products ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:38
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.