Manika Plastech IPO

Strengths · 8

• 01This is the cheapest mainboard issue in the current batch on earnings, at about 9.58 times on an EPS of Rs 4.49.
• 02Profit has nearly doubled in two years, from Rs 11.53 crore in FY2024 to Rs 19.33 crore in FY2025 and Rs 22.40 crore in FY2026.
• 03EBITDA has improved strongly, from Rs 30.86 crore in FY2024 to Rs 45.30 crore in FY2025 and Rs 58.14 crore in FY2026.
• 04The company has a long record of about 30 years, having started in 1996.
• 05Its customers are spread across many industries, from automotive and energy storage to paints, agrochemicals and dairy, so it is not tied to one sector.
• 06Making battery casings to JIS and DIN standards is a technical requirement that not every packaging maker can meet, which helps hold on to automotive customers.
• 07It does the full job in house, from design and material sourcing through to heat sealing, labelling and delivery.
• 08Rs 54.93 crore of the issue money goes into plant and machinery, which adds real production capacity.

Risks · 8

• 01The profit margin is thin at 5.12%. In plastic packaging the polymer itself is most of the cost, so a small change in resin price moves profit sharply.
• 02Growth has slowed. Total income rose only 6% in FY2026, from Rs 412.59 crore to Rs 437.26 crore.
• 03Debt is high and is not coming down. Borrowing was Rs 92.46 crore as on 30 June 2026 against a net worth of Rs 156.78 crore, and it has stayed in the Rs 88 crore to Rs 97 crore range for three years.
• 04Return on net worth is only 15.18%, which is modest for a manufacturing business of this size.
• 05Total assets have stopped growing, moving from Rs 320.99 crore in FY2025 to Rs 323.69 crore in FY2026 and Rs 317.00 crore as on 30 June 2026.
• 06The raw material is polymer, which is linked to crude oil prices and is largely outside the company's control.
• 07The latest column in the offer document is only a three month period ending 30 June 2026, so it cannot be compared with the full years before it.
• 08This is a fresh issue combined with an offer for sale, and promoter holding falls from 100% to 74.95% after the issue.

Manika Plastech Limited was started in 1996. It makes rigid polymer packaging, which means hard plastic containers and casings rather than film or flexible packing.

It makes three main things. Battery casings are the hard plastic boxes that hold automotive batteries, and the company designs these to Japanese JIS and German DIN technical standards to meet what each customer specifies. Pails are the buckets used to pack paints, lubricants and industrial chemicals. Thinwall containers are the food grade tubs used to pack and distribute dairy products and other edible items.

The company handles the whole job in house, covering design and development, buying the raw material, manufacturing, heat sealing, labelling, quality checks and delivery. Its customers come from many industries, including automotive, energy storage, telecommunications, paints, lubricants, agrochemicals, construction chemicals and food and dairy. Over the three months ended 30 June 2026 and the three financial years before that, it served between 168 and 242 customers across 24 states and union territories in India.

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