Synopsis:
Sati Poly Plast Limited has provided an operational update following the fire accident that took place at its Noida corporate office in February 2025. The company reassured investors that operations are being managed through alternate facilities and confirmed that insurance recovery is underway.
The company manufactures multifunctional flexible packaging materials for the packaging needs of various industries and is in focus after plans to restart operations by October of this year.
With market capitalization of Rs. 40 cr, the shares of Sati Poly Plast Limited are currently trading at Rs. 85 per share, jumping 5.33% in today’s market session making a high of Rs. 85, from its previous closing of Rs. 80.70 per share.
News
Sati Poly Plast Limited has issued an update on its business operations following the fire accident at its Noida corporate office on February 15, 2025, which temporarily disrupted activities. The company stated that operations have been managed through its Greater Noida plant and with support from group company Osho Tradeflex Pvt. Ltd. A forensic team has issued its internal report in favour of the company, and a liaisoning officer has been appointed to speed up the insurance claim process.
Sati Poly Plast expects to receive an insurance claim of about Rs. 25 crore by Diwali 2025 (October), after which the damaged plant will be restarted. The company assured investors and stakeholders that their interests will not be affected and that business operations will soon return to normal.
About the company
Sati Poly Plast Limited is a plastics manufacturing company engaged in producing a wide range of packaging materials, films, and related polymer-based products. It caters to sectors such as consumer goods, industrial packaging, and retail, offering flexible and durable plastic solutions for diverse applications.
The company operates manufacturing facilities in Uttar Pradesh and supports its business through group entities, focusing on delivering cost-effective and reliable plastic packaging products to its clients across India.
The company reported revenue of Rs. 156 Cr in H2FY25, increasing by 50% from Rs. 104 Cr in H2FY24 and increasing by 7% from H1FY25. For the same period, its Net profit saw a turnaround from a profit of 2 Cr to a loss of 14 Cr, and again a turnaround from a Rs. 4 Cr profit to a loss.
Sati Poly Plast Limited has showcased strong financial efficiency with a Return on Capital Employed (ROCE) of 39.4% and an impressive Return on Equity (ROE) of 104%, supported by a consistent three-year ROE track record of 84.5%. The sales have increased 68% in March 2025 from Rs. 179 cr in March 2024 to Rs. 302 cr.
The company has also reduced its debt levels, reflecting improved financial stability, while its working capital cycle has shortened from 16 days to 12.5 days, indicating better operational efficiency and liquidity management.
Written by Manideep Appana
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