National Plastic Industries Ltd
(BSE Code: 526616) (CMP: Rs.67.95) (FV: Rs.10)
Incorporated in 1952, Mumbai-based National Plastic Industries Ltd (NPIL) manufactures and sells plastic products under the ‘National’ brand. It offers furniture products including chairs, corner and shoe racks, utility packs, stools, baby products, planters and storage products; dining, round, center and student tables; and housewares such as buckets, chopping boards, laundry baskets, hobby boxes, shopping baskets, storage crates and hangers. It also provides PVC flooring mats under the ‘INSTA’ brand. It also exports its products.
NPIL has an equity capital of Rs.9.13 crore supported by reserves of Rs.14.73 crore. The promoters hold 56.66% of the equity capital, which leaves 43.34% stake with the investing public. During Q2FY18, PAT jumped 30% to Rs.0.96 crore from Rs.0.74 crore on 32% higher sales of Rs.31.91 crore fetching an EPS of Rs.1.05. During H1FY18, PAT jumped
23% to Rs.1.66 crore from Rs.1.35 crore in H1FY17 on
21% higher sales of Rs.54.93 crore fetching an EPS of Rs.1.82. Half yearly H1FY18 PAT was 55% higher than full year FY17 PAT of Rs.1.07 crore.
NPIL is a regular dividend-paying company. It paid 10% dividend for FY17. Currently, the stock trades at a P/E of 44.12x. Its 52-week high/low is Rs.110/50.2. Thus, the stock is available near its 52-week low. Based on its Q2 and H1FY18 performance, the stock looks quite attractive at this level. Investors can buy this stock with a stop loss of Rs.57. On the upper side, it could zoom to Rs.90-100 levels in the medium-term.