Synopsis:
National Plastic Technologies secured a 3-year supply contract from Hero MotoCorp worth about ₹157.5 crore, setting up a new plant near Sri City while initially supplying from existing units.
This Micro-cap Plastic Stock, engaged in the manufacture and supply of injection molded plastic components primarily for the automotive industry, consumer durables, and IT peripherals, jumped 4.71 percent after receiving a contract worth Rs. 157.50 Cr from Hero MotoCorp Limited.
With a market capitalization of Rs. 159.40 crores, the share of National Plastic Technologies Limited has reached an intraday high of Rs. 271.90 per equity share, rising nearly 4.71 percent from its previous day’s close price of Rs. 259.65. Since then, the stock has retreated and is currently trading at Rs. 262.25 per equity share.
What is the news?
National Plastic Technologies Limited has received a Letter of Comfort from Hero MotoCorp Limited for the manufacture and supply of painted and unpainted plastic body parts. The company will set up a new manufacturing unit near Sri City/Tirupati in Andhra Pradesh within 6 to 8 months. Till then, supplies will be managed from the company’s existing plants. The contract period is for 3 years.
The estimated value of the order is about Rs. 52.50 crore per year, which totals to around Rs. 157.50 crore for the full three years. This contract supports the company’s business expansion and is expected to help in the growth of the company.
Company Overview
National Plastic Technologies Limited was established in 1989 and is headquartered in Chennai, India. The company is engaged in the manufacture and supply of injection moulded plastic products.
The company primarily serves the automotive sector, supplying components for two-wheelers, three-wheelers, and four-wheelers, as well as the consumer electronics and IT peripherals segments.
The company operates multiple manufacturing plants across India, including locations in Chennai, Sriperumbudur, Hosur, Puducherry, Nalagarh, and Faridabad. It has a strong reputation as a Tier II vendor in the automotive industry.
National Plastic Technologies offers a wide range of products, such as automotive interior and exterior trims, bumpers, and various other plastic molded components. Besides automotive parts, it produces components for consumer durable goods, including keyboards, air conditioners, televisions, and washing machines.
Recent quarter results
Coming into financial highlights, National Plastic Technologies Limited’s revenue has increased from Rs. 86.79 crore in Q2 FY25 to Rs. 88.86 crore in Q2 FY26, which has grown by 2.39 percent. The net profit has also grown by 6.69 percent from Rs. 2.54 crore in Q2 FY25 to Rs. 2.71 crore in Q2 FY26.
National Plastic Technologies Limited’s revenue and net profit have grown at a CAGR of 36.12 percent and 73.21 percent, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE stand at 17.2 percent and 19.1 percent, respectively. National Plastic Technologies Limited has an earnings per share (EPS) of Rs. 15.4, and its debt-to-equity ratio is 1.04x.
Written By – Nikhil Naik
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