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Prima Plastics Ltd

NSE: BSE: 530589

103

(0.51%)

Sat, 09 May 2026, 03:50 pm

Prima Plastics Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (7.1x coverage).
  • Prima Plastics's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • No dividend growth in 10 years.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Prima Plastics's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • Prima Plastics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Prima Plastics is profitable, therefore cash runway is not a concern.
  • Prima Plastics is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (59.5%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 2.6x debt.
  • Prima Plastics's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 4.7x coverage).
  • Prima Plastics's level of debt (29.6%) compared to net worth is satisfactory (less than 40%).
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Cons

  • The level of debt compared to net worth has increased over the past 5 years (9.8% vs 29.6% today).
  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the Prima Plastics board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • Dilip's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • Dilip's remuneration is higher than average for companies of similar size in India.
  • The average tenure for the Prima Plastics management team is less than 2 years, this suggests a new team.

misc

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Pros

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    Cons

    • Prima Plastics is not covered by any analysts.
    • Prima Plastics has significant price volatility in the past 3 months.

    past

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    Pros

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      Cons

      • Prima Plastics's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Prima Plastics's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
      • Prima Plastics used its assets less efficiently than the IN Consumer Durables industry average last year based on Return on Assets.
      • Prima Plastics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Prima Plastics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Prima Plastics's 1-year earnings growth is negative, it can't be compared to the IN Consumer Durables industry average.

      value

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      Pros

      • Prima Plastics's share price is below the future cash flow value, and at a moderate discount (> 20%).
      • Prima Plastics is good value based on assets compared to the IN Consumer Durables industry average.
      • Prima Plastics is good value based on earnings compared to the IN Consumer Durables industry average.
      • Prima Plastics is good value based on earnings compared to the India market.
      • BSE:530589 is up 20.3% outperforming the Consumer Durables industry which returned 6.7% over the past month.
      • BSE:530589 is up 20.3% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Prima Plastics's share price is below the future cash flow value, but not at a substantial discount (< 40%).
      • 530589 underperformed the Consumer Durables industry which returned 5.6% over the past year.
      • 530589 underperformed the Market in India which returned -14.5% over the past year.

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