Manika Plastech (MPL) manufactures rigid polymer packaging products, including battery casings, pails and thinwall containers. Battery casings, pails and thinwall containers cater to various industrial and consumer applications. The company also manufactures pails used for packaging paints, lubricants and industrial chemicals. The food-grade thinwall containers are used for the packaging and distribution of dairy and edible food products.

MPL provides end-to-end rigid polymer packaging solutions, covering design and development, sourcing of raw materials, manufacturing, heat sealing, labelling, quality assurance and delivery. The company has developed capabilities to provide customized packaging products and designs its automotive battery casings in accordance with Japanese and German technical standards, including Japanese Industrial Standards(JIS) and DeutschesInstitut Fur Normung (DIN) standards, to meet customer-specific product specifications and quality requirements.

MPL serves a diversified customer base across multiple end-user industries, including automotive, energy storage, telecommunications, paints, lubricants, agrochemicals, construction chemicals, food and dairy, among others. Its Top 10 customers include Livguard Energy Technologies, Luminous Power Technologies, Genus Innovation, Grasim Industries, JSW Paints, Kansai Nerolac Paints, Indigo Paints, and TVS Motor company.

In the last three financial years, the company served 168 to 242 customers across 24 states and union territories in India. Its Top 20 customers had an average relationship tenure of over 10 years as of June 30, 2026.

In the last three financial years, the company sold over 2,700 stock keeping units (SKUs) of battery casings, over 2,900 SKUs of pails and over 1,000 SKUs of thinwall containers.

MPL has 7 operating facilities, comprising 6 manufacturing facilities located in Dehradun, Hosur, Panipat, Una and Dadra, and 1 paint facility located in Hosur. Operating facilities collectively span an area of over 51,000 square meters and has an aggregate installed capacity of 29,200 tpa.

As of July 31, 2026, MPL hadan employee base of 352 employees and 809 contract laborers.

Object of the offer

The offer consists of both a fresh issue and an offer for sale component (OFS). The fresh issue will include 21511628 shares, aggregating up to Rs 92.5 crore at the upper price band of Rs 43. OFS includes 76,74,418 shares of Rs 2, aggregating up to Rs 33.0 crore at upper price band of Rs 43.

The funds raised to the tune of Rs 54.93 crore will be used towards the capital expenditure towards purchase of plant and machinery. With this proposed expansion, the company’s total installed capacity is expected to go up to 38,000 MTPA from current 29,200 MTPA. The company has placed purchase order for the same and is expected to be completed in the current financial year; Rs 15.0 crore will be utilised towards repayment and/or pre-payment, in part or full, of certain borrowings availed by the company and the balance to be used for general corporate purposes.

Strengths

The company holds 30 registered product designs, giving it a defensible, design-led position in precision rigid packaging.

In-house design, development, heat-transfer labelling, and screen printing let the company offer integrated, value-added packaging services end-to-end.

A diversified mix across battery casings, pails, thinwall containers, and a painting facility spreads revenue across automotive, energy, paints, and food industries.

Enjoys location advantage as its manufacturing facilities are strategically located at Dehradun, Hosur, Una, Silvassa, and Panipat, which are in proximity to its clients having presence in power batteries, paints, and auto sectors.

Has implemented quality assurance systems and standard operating procedures in all its operating facilities, which enables the company to meet the requirements of its customers and maintain its track record of reliability.

Weaknesses

Top 5 customers contributed 58.75% of the total revenues in 3 months ended June 2026 and 62.95% in FY2026.

Has set up its operating facilitiesin proximity of the customers manufacturing units, whichexposes its facilities to potential fluctuations in the scale of business of its customers and relatedindustry trends.

Repeat customers drove 93% to 98% of revenue, making any drop in repeat orders a material threat to sales.

MPL uses poly-propylene co-polymer (PPCP) and acrylonitrile butadiene styrene (ABS) as its major raw materials. PPCP and ABS are crude oil derivatives. Hence, MPL’s profitability is susceptible to volatility in crude oil prices, which has direct bearing on its raw material prices

The overall operations are working capital intensive. Inventory levels have risen primarily due to expansion in product categories and the addition of new stock-keeping units, which require maintaining minimum stock even in initial stabilisation.

The company does not own all its manufacturing sites, relying on lease and license agreements expose the operations of the company to renewal and tenure risk.

MPL’s promoter, Vridaa Holding Trust, is a private trust, and its promoter group comprises multiple trusts, which may lead to concerns in determining ultimate control and beneficial ownership of the company.

Valuation

Net profit stood at Rs 13.07 crore on net sales of Rs 162.45 crore in the three months ended June 2026.

Consolidated sales were up by 7.3% to Rs 435.98crore in FY2026.Operating profit margin (OPM) expanded from 11.14% to 13.34%, leading to a 28.3% increase in operating profit to Rs 58.14crore. Other income declined 79% to Rs 1.28 crore. Interest cost inclined 12.2% to Rs 15.05 crore and depreciationcost inclined by11.1% to Rs 13.94crore. PBT was higher by 19.7% to Rs 30.44 crore as against Rs 25.43crore.PAT was higher by 15.9% to Rs 22.4 crore as against Rs 19.33 crore in FY2025.

At the higher price band of Rs 43, the offer is made at a P/E of 22.36 times FY2026 EPS (of Rs 1.9).

As of March 31, 2026, total consolidated borrowings of the company stood at Rs 88.19 crore (As of June 30,2026, total consolidated borrowings stood at Rs 92.46 crore). The company proposes to pay off Rs 15.0 crore of the borrowings from the net proceeds from fresh issue. Repayment of the borrowings will reduce the interest cost. The EPS for FY26 works out to Rs 2.1 if its interest cost is reduced, keeping all other items, including tax rate, same. The re-worked P/E at the upper price band moderates to 20.63 times of its FY26 EPS

Listed peers are Mold Tek Packaging and Hitech Corporation. Mold Tek Packaging trades at 30.5 times TTM P/E and Hitech Corporation trades at 30.5 times TTM P/E. The OPM and ROE stood at 13.34% and 15.18%, respectively, in FY26. These were 19% and 10.8% for Mold Tek Packaging and 12% and 5.83% for Hitech Corporation, respectively.