TPL Plastech Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

TPL Plastech Ltd trades at ₹77.3, in a confirmed uptrend and 5 weeks into that stage. That is +7.8% against its own 200-day average. It sits at 70% of a 52-week range of ₹55 to ₹87. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 10 straight weeks.

Today the stock is in a confirmed uptrend — week 5 of stage 2, confirmed. At ₹77.3 it trades +7.8% versus its 200-day average and sits at 70% of its 52-week range (₹55–₹87).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +367% while the NIFTY 500 moved +278% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 10 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

TPL Plastech Ltd's story is not scored yet against the markers our research file set on 19 July 2026. Where it sits in its own cycle: Not stated in the research file. Our fortnightly research layers last read it on 19 July 2026.

Our read, 19 July 2026. A steady plastic container compounder deleveraging rapidly through strong cash conversion and working capital efficiency post-capex.

From the numbers. TPL Plastech is operating near its mid-cycle average with normalized OPM at 11.3%. The trailing PE of 21.4 aligns closely with the normalized PE of 21.8, placing it in the 41st percentile of its 10-year history. This…

From the price. Price stage 2, week 5 — above its 200-day line, relative strength rising.

From the research. A steady plastic container compounder deleveraging rapidly through strong cash conversion and working capital efficiency post-capex.

🚨 Where they disagree. TPL Plastech is operating near its mid-cycle average with normalized OPM at 11.3%. The trailing PE of 21.4 aligns closely with the normalized PE of 21.8, placing it in the 41st percentile of its 10-year history. This suggests the market is pricing the business fairly on its sustainable earnings power without speculative premiums.

What is proven. A steady plastic container compounder deleveraging rapidly through strong cash conversion and working capital efficiency post-capex.

What is not proven yet. A sudden expansion in working capital days (particularly debtor days creeping back above 75) combined with negative free cash flow would break the thesis of structurally improved capital efficiency.

🚨 What would change our mind. A sudden expansion in working capital days (particularly debtor days creeping back above 75) combined with negative free cash flow would break the thesis of structurally improved capital efficiency.

Layer 1 read, 19 July 2026 — KEEP. Clean, cheap steady compounder — but flat margins, a stage-4 downtrend, and a fully synthetic no-concall timeline cap it at P2. The balance sheet is pristine (borrowings down to Rs 19cr, D/E 0.11, ROCE 22.3% at its 80th percentile) and cash conversion is strong (OCF/PAT 1.25x, Rs 55cr FCF), but the 12-quarter engine is modest volume growth on FLAT ~11-12% OPM — deleveraging, not a margin inflection. The timeline is web-search synthetic (Bronze, zero verified claims, no concalls per R1), which caps conviction, and the price sits in a Weinstein stage-4 downtrend (73 weeks). Intact thesis, unexciting story — P2 with a low score, left for the ranked cut to place.

What would change Layer 1’s mind. Debtor days creeping back above 75 with negative FCF (the stated falsification) OR a debt-funded capex cycle (D1 stops_working_if) — either breaks the capital-efficiency thesis; conversely a real OPM inflection above 13% sustained would upgrade it toward P1 despite the thin evidence base.

Layer 2 read, 19 July 2026 — BENCH. Clean, cheap-ish steady plastics compounder with a pristine balance sheet -- but a synthetic Bronze timeline and zero external streams give nothing to advance on. The engine is real and low-risk -- revenue 69->114cr, EPS 0.47->1.03, D/E 0.11 and OCF/PAT 1.25x -- with no thesis violation, so it is not a DROP. But the timeline is fully synthetic (web-search built, Bronze tier, 0 of 9 claims verified) with no concalls, the price sits in Weinstein stage 4 for 73 weeks, OPM is flat ~11-12%, and every external stream is empty (sector_gate_status=NO_CURVE). A P2 with thin streams and no external positive is held, not advanced.

What would change Layer 2’s mind. A real concall (retiring the synthetic tag) confirming a genuine OPM inflection above the flat ~11-12% band, or an external sector tailwind emerging for plastic containers, would flip BENCH to ADVANCE. Conversely, working-capital deterioration -- debtor days back above 75 with negative FCF (the timeline's own falsifier) -- would push toward DROP.

The test written in advance. A sudden expansion in working capital days (particularly debtor days creeping back above 75) combined with negative free cash flow would break the thesis of structurally improved capital efficiency. — the thesis as written as stated by the next result.

The test written in advance. Information Asymmetry — Information Asymmetry Any unexplained margin contraction in the quarterly results. by the next result.

What the company does. TPL Plastech is operating near its mid-cycle margins (11.3% OPM) with a trailing PE of 21.4 (41st percentile), reflecting fair valuation. The underlying business quality is improving, evidenced by ROCE expanding to 22.3% driven by structural working capital gains (debtor days down to 54). Strong operating cash flow has allowed the company to pay down debt to ₹19 Cr, creating a self-funding setup with limited downside risk but lacking explicit near-term growth triggers.

🚨 What the surface reading misses. The surface reading is: Valuation is slightly below the historical median, indicating it is fairly priced. The research reads it further: The PE accurately reflects sustainable earnings as margins are near mid-cycle.

🚨 What the surface reading misses. The surface reading is: Margins are exactly average. The research reads it further: The company operates with highly stable pricing power and input cost pass-through, resulting in very low cyclicality.

Lever 4 · Paying down debt — BUILDING. Debt reduction lowers interest burden and expands net margins slightly. What proves it keeps working: Deleveraging Phase. It stops working if The company initiates a major debt-funded capex cycle.

Sources: our stock research file (19 July 2026) · quarterly results through Jun 26. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

TPL Plastech Ltd reported ₹124 Cr of revenue in the Jun 26 quarter, +37.6% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 9.0% a year. The last full year, FY26, came in at ₹423 Cr. The last four reported quarters add to ₹457 Cr.

FY26 revenue came in at ₹423 Cr (+21.2% on the year), capping 10 years at 9.0% compound. The latest quarter (Jun 26) printed ₹124 Cr, +37.6% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +25.9% growth against the decade's 9.0% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +25.9% over the last 4 quarters against +19.3%/yr over the last 8 — accelerating; TTM profit +22.4% vs +20.6%/yr — stabilising.

FY26-Q4. revenue ₹114 Cr and profit ₹8 Cr as reported.

FY27-Q1. revenue ₹124 Cr and profit ₹7 Cr as reported.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

TPL Plastech Ltd's operating margin is 9.1% in the Jun 26 quarter, −2.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 9.0% to 13.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 9.1%, −2.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 9.0%–13.0%.

🚨 Why the margin moved: operating margin went −2.0 pp year on year while gross margin went −3.6 pp — the loss came mostly from the gross line: input costs and pricing.

FY26-Q4. revenue ₹114 Cr and profit ₹8 Cr as reported.

FY27-Q1. revenue ₹124 Cr and profit ₹7 Cr as reported.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

TPL Plastech Ltd earned ₹6.5 Cr of net profit in the Jun 26 quarter, +19.2% year on year. It is the 12th consecutive quarter of growth. Full-year FY26 profit was ₹29.0 Cr. The 10-year compound rate is 12.4%. That is 5.2% of the quarter's revenue. The same quarter a year earlier earned ₹5.5 Cr.

Jun 26 profit was ₹6.5 Cr, +19.2% year on year — the 12th consecutive quarter of growth. On the full year, FY26 printed ₹29.0 Cr (+20.8%), and the 10-year compound rate is 12.4%.

Why profit moved: revenue contributed +37.6% and the margin −2.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +22.6% vs revenue +25.9%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

FY26-Q4. revenue ₹114 Cr and profit ₹8 Cr as reported.

FY27-Q1. revenue ₹124 Cr and profit ₹7 Cr as reported.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 125% of TPL Plastech Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹46.0 Cr of operating cash against ₹29.0 Cr of profit. After ₹6.0 Cr of capital spending, ₹40.0 Cr was left as free cash.

Why this happened. A structural shift in working capital management has unlocked cash flow, with inventory days down to 74 and debtor days to 54. This velocity allows the company to support 21% TTM revenue growth without requiring external financing.

FY26: operating cash of ₹46.0 Cr against reported profit of ₹29.0 Cr, leaving free cash of ₹40.0 Cr after ₹6.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 125% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 125%: the cash cycle tightened 15 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 1.9× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

TPL Plastech Ltd's cash conversion cycle runs 71 days in FY26, down from 86 days in FY21. Capital spending ran ₹33.0 Cr over the last 3 years. At FY26 sales of ₹423 Cr each day of that cycle holds about ₹1.2 Cr, so roughly ₹82.0 Cr sits inside the business at any moment.

FY26: debtors at 54 days, inventory at 74 days — roughly 2.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 71 days, tighter than FY21's 86.

The full loop: cash goes out to suppliers and production on day 0; stock waits 74 days to sell; customers pay about 54 days after that; and suppliers themselves are paid at 57 days — netting out to the 71-day cycle.

In money terms: at FY26 sales of ₹423 Cr, each day of the cycle holds about ₹1.2 Cr — so the 71-day loop keeps roughly ₹82.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹33.0 Cr over the last 3 fiscal years against ₹17.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹6.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

TPL Plastech Ltd earns a ROCE of 22% in FY26. That is up from a trough of 14% in FY21. Return on invested capital clears the cost of that capital by +6.8 percentage points, so growth here adds value rather than only size. The wiring behind it is 6.9% net margin on 1.65× asset turns.

FY26 ROCE is 22%, recovered from a FY21 trough of 14% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 6.9% net margin × 1.65× asset turns × 1.51× balance-sheet leverage ≈ 17.2% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 18.8% − 12.0% = a +6.8 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

TPL Plastech Ltd carries ₹19.0 Cr of borrowings against ₹169 Cr of equity in FY26, a debt-to-equity of 0.11. Operating profit covers the interest bill 10×. Over 5 years borrowings went from ₹29.0 Cr to ₹19.0 Cr. Capital spending ran ₹33.0 Cr across the last 3 of those years.

Why this happened. The company has reduced its borrowings significantly over the past year, dropping total debt to ₹19 Cr. This ongoing deleveraging reduces finance costs, directly benefiting the bottom line even if operating margins remain flat.

FY26: borrowings of ₹19.0 Cr against equity of ₹169 Cr — a debt-to-equity of 0.11. Operating profit covers the interest bill 10×. Over 5 years borrowings went from ₹29.0 Cr to ₹19.0 Cr while capital spending ran ₹33.0 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of TPL Plastech Ltd moved a full percentage point over the last two years — the register is quiet. Promoters moved +0.0 points over the same window, to 74.9%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +0.3 points over 8 quarters to 0.5%; Promoters: +0.0 points over 8 quarters to 74.9%; Domestic institutions: +0.0 points over 8 quarters to 0.0%.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

TPL Plastech Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

TPL Plastech Ltd trades at 20.0× P/E, mid-range by its own standards (40th percentile). Its long-run median P/E is 24.4×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 20.0× is mid-range by its own standards (40th percentile), against a long-run median of 24.4× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +23.5% against a +2.7% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +17.9%/yr price move, ~+30.3%/yr came from earnings growth and ~−12.4 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

At its price on 20 July 2026, TPL Plastech Ltd was priced for profit growth of about 11.8% a year. Profit itself has compounded 12.4% a year over the past 10 years. The market pays that at 20.0× P/E, the 40th percentile of its own 11-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is close to what this company has actually delivered. Both readings sit on the same earnings, so they are one reading rather than two.

How to hold this number: it is a reading of one day's price, taken on 20 July 2026, not a running figure. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements. Every other number on this page is read off the live quote.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

TPL Plastech Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 22.0% and holding. The read is built from 10 quarters across 4 curves, on partial evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

67.6/100 — rank 1 of 1 in Plastics - Plastic Containers · 84% evidence confidence

TPL Plastech Ltd scores 67.6 out of 100 against the 1 companies it is compared with in Plastics - Plastic Containers, ranking 1. Confirmed research leader: earnings, capital efficiency and relative strength agree. Move to management, catalyst and risk diligence.

The four contributions add to the total exactly: 22.9 + 21.6 + 10.6 + 12.5 = 67.6. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Frequently asked questions