Manika Plastech IPO

Manika makes rigid plastic packaging used in industries such as energy storage, paints, chemicals, food and dairy. Its main products include battery casings, pails and thin-wall containers.

Battery casings contributed 56.54% of FY26 revenue, while pails and thin-wall containers contributed 30.51%. Northern India contributed 53.31% of FY26 revenue.

The company operated seven facilities, including six manufacturing facilities and one painting facility. The company could produce about 28,300 tonnes a year in FY26, rising to about 29,200 tonnes a year by June 2026.

Revenue from operations increased from ₹360.77 crore in FY24 to ₹435.98 crore in FY26. Profit after tax increased from ₹11.53 crore to ₹22.40 crore over the same period.

FY26 operating profit margin before interest, tax, depreciation and amortisation (EBITDA margin) was 13.34%. Return on net worth was 15.18%, while return on capital employed was 18.77%. These return measures indicate how efficiently the company generated profit from shareholder funds and overall capital.

Cash from operations was ₹44.30 crore in FY26 compared with ₹22.40 crore of profit after tax. Cash from operations was also positive at ₹35.42 crore in FY24 and ₹36.88 crore in FY25.

The debt-to-equity ratio fell from 0.86 times in FY24 to 0.60 times in FY26. Total borrowings at the end of FY26 were ₹88.19 crore.

At the upper price of ₹43, the IPO is about ₹125.50 crore. About ₹92.50 crore is fresh money going to the company and about ₹33.00 crore is existing shares being sold through the offer for sale.

From the fresh issue, ₹54.93 crore is planned for plant and machinery and ₹15.00 crore for repayment or pre-payment of borrowings. The remaining net proceeds are intended for general corporate purposes.

The RHP says purchase orders had not yet been placed for about 72.12% of the proposed plant-and-machinery amount. By July 31, 2026, ₹3.84 crore had already been paid as advances to suppliers from the company’s own funds.

The top five customers contributed 62.95% of FY26 revenue and the top ten contributed 73.45%. This level of dependence means losing or receiving fewer orders from a major customer could affect sales.

Battery casings contributed 56.54% of FY26 revenue. The top ten suppliers accounted for 62.70% of FY26 purchases, so both product and supplier concentration need attention.

The offer documents disclose that Manika Automotive Private Limited had losses and negative cash flow in past periods. They also disclose historical related-party transactions and a promoter structure that includes VRIDAA Holding Trust and other trusts in the promoter group.

The company also states that bank statements for certain historical share allotments could not be traced. A separate past reporting non-compliance involving an erstwhile subsidiary resulted in MCA fines on individual promoters.

Purchase orders had not yet been placed for about 72.12% of the proposed plant-and-machinery amount to be funded from IPO proceeds. This leaves a meaningful part of the planned expansion to be executed after the offer.

The announced price band is ₹40 to ₹43 per share. Manika reports FY26 earnings per share of ₹2.36.

The RHP shows Hitech Corporation at 37.85 times earnings and Mold-Tek Packaging at 32.34 times. Manika reports a selected peer average of 35.10 times.

Shaily Engineering Plastics was shown at 88.85 times earnings, but Manika identifies it as an outlier and excludes it from the 35.10 times peer average. FY26 return on net worth was 15.18% and return on capital employed was 18.77%.