Tainwala Chemicals & Plastics (India) Ltd (TAINWALCHM) AI Stock Analysis

• Market Cap: ₹1.71B
• Dividend Yield: 1.64%
• Average Volume (3M): 573.00
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.71
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 24
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Chemicals - Specialty
• EPS (TTM): 4.14
• Shares Outstanding: 9,363,863
• 10 Day Avg. Volume: 327
• 30 Day Avg. Volume: 573
• PEG Ratio: 19.78
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 12.69
• P/FCF Ratio: 22.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ₹175.00 ▼(-10.78% Downside)

The score is primarily driven by improving financial performance, especially the debt-free balance sheet and stronger FY2025 revenue and cash generation, tempered by a history of operating/cash-flow volatility and modest ROE. Technical signals are neutral-to-mixed and valuation is mid-range (P/E ~24.4 with a modest ~1.5% yield), keeping the overall score in the low-to-mid 60s.

Positive Factors

Debt-free balance sheet

A virtually debt-free balance sheet materially reduces financial risk and preserves funding optionality. This structural strength allows the company to absorb raw-material shocks, fund working-capital or modest capex from internal resources, and pursue opportunities without leaning on external lenders over the medium term.

Strong FY2025 revenue growth

A ~38% YoY revenue increase in FY2025 indicates durable demand improvement or share gains in its packaging/plastics end markets. Sustained top-line expansion supports fixed-cost absorption and scale, improving the company's ability to enhance margins and invest in capacity or product initiatives over the next several quarters.

Improved cash generation

Operating and free cash flow roughly matching net income in the latest year signals higher earnings quality and better cash conversion. This structural improvement strengthens internal funding for reinvestment, dividends or working capital, lowering reliance on external financing and enhancing financial resilience.

Negative Factors

Historical cash-flow volatility

Multi-year swings in operating and free cash flow, including prior negative years, show sensitivity to working-capital and demand cycles. Such volatility undermines predictability for reinvestment and capital allocation, raising the risk that the recent cash improvement may not be sustained without structural changes.

Modest return on equity

Low single-digit ROE despite asset and equity growth suggests limited capital efficiency and muted shareholder value generation. Persistently modest ROE implies the business needs better pricing, mix, or utilization to convert a larger capital base into higher sustainable profits over time.

Volatile operating profitability

Periods of negative EBIT and uneven margins point to unstable operating performance driven by input-cost swings, utilization gaps, or limited pricing power. This structural volatility complicates margin sustainability and forecasting, making long-term planning and consistent returns more challenging.

Tainwala Chemicals & Plastics (India) Ltd Business Overview & Revenue Model

Company Description

Tainwala Chemicals and Plastics (India) Limited manufactures and sells extruded plastic sheets in India. The company operates in two segments, Plastic Sheets and Securities Trading. It offers PVC rigid, flexible, and corrugated sheets, as well as PVC foils; and polypropylene, talc-filled polypropylene, glass laminated polypropylene, polyethylene, polystyrene, acrylontrile, and copolymer sheets. The company is also involved in the securities trading business. Its products are used in the fabrication of industrial equipment, the lining of chemical tanks, signboards, automobiles, and white goods industries, as well as pollution control equipment. The company was incorporated in 1985 and is based in Mumbai, India.

How the Company Makes Money

Tainwala Chemicals & Plastics (India) Ltd Financial Statement Overview

Summary

Financials are improving, led by a strong FY2025 revenue jump (~38% YoY) and sharply better operating/free cash flow that roughly matches net income. The balance sheet is a key strength with essentially no debt and a growing equity/asset base, but the longer history shows uneven profitability/cash-flow conversion (including prior negative EBIT/FCF) and modest ROE, which caps the score.

Income Statement

Revenue has expanded meaningfully over the period, with a very strong jump in FY2025 (up ~38% YoY), indicating improving demand/scale. Profitability is mixed: the latest year shows healthy gross profit and strong net profit, but operating profit has been volatile in prior years (including periods of negative EBIT) and margins have not been consistently stable year-to-year. Overall, earnings power looks improved recently, but the track record shows uneven operating performance that tempers the score.

Balance Sheet

The balance sheet is conservatively positioned with essentially no debt across the reported years, which materially reduces financial risk and provides flexibility through cycles. Equity and total assets have grown strongly (notably into FY2025), supporting a sturdier capital base. The main drawback is modest returns on equity (low single-digits), suggesting the company is not yet converting its capital base into high returns despite the improved recent profitability.

Cash Flow

Cash generation is improving sharply in FY2025, with operating cash flow and free cash flow both strong and roughly matching reported net income, which is a positive quality signal. However, cash flow has been inconsistent historically, including multiple years of negative operating cash flow and free cash flow, pointing to volatility in working capital/operating conversion. The latest year is encouraging, but the uneven multi-year pattern keeps the score moderate.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	158.79M	164.17M	180.30M	128.34M	77.20M	64.68M
Gross Profit	32.97M	35.54M	4.07M	-11.85M	20.44M	11.48M
EBITDA	86.69M	66.79M	59.69M	43.42M	11.01M	1.94M
Net Income	69.43M	49.20M	48.15M	32.81M	3.69M	-3.25M
Balance Sheet
Total Assets	0.00	1.67B	1.23B	994.45M	915.74M	1.00B
Cash, Cash Equivalents and Short-Term Investments	16.77M	16.77M	2.90M	8.50M	5.02M	6.21M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	-1.54B	135.31M	56.55M	7.25M	13.26M	23.75M
Stockholders Equity	1.54B	1.54B	1.18B	987.20M	902.48M	979.32M
Cash Flow
Free Cash Flow	0.00	94.11M	8.39M	-66.29M	-27.26M	31.69M
Operating Cash Flow	0.00	94.14M	8.39M	-55.44M	-21.25M	36.64M
Investing Cash Flow	0.00	-83.03M	-9.36M	54.51M	23.60M	-30.12M
Financing Cash Flow	0.00	-141.00K	-113.00K	-103.00K	-3.54M	-399.00K

Tainwala Chemicals & Plastics (India) Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KANPRPLA	66 Neutral	₹4.10B	15.94	―	0.52%	23.02%	―
TAINWALCHM	63 Neutral	₹1.71B	23.08	―	1.64%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BANSWRAS	60 Neutral	₹3.60B	16.58	―	0.88%	5.59%	-5.44%
RPPL	60 Neutral	₹1.16B	10.30	―	―	10.14%	73.18%
ORIENTBELL	55 Neutral	₹3.99B	44.45	―	0.19%	-1.45%	849.26%

Tainwala Chemicals & Plastics (India) Ltd Corporate Events

Tainwala Chemicals & Plastics Files SEBI Dematerialisation Compliance Certificate

Tainwala Chemicals and Plastics (India) Limited has submitted a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended 31 December 2025. The certificate, issued by its registrar and share transfer agent MUFG Intime India Private Limited, confirms that all securities received for dematerialisation during the quarter were duly processed, listed on the appropriate stock exchanges, and that the corresponding physical certificates were verified, cancelled, and replaced in the company’s register of members with the depositories as the registered owners within the prescribed timelines, underscoring the company’s adherence to regulatory norms in handling shareholder securities.