Prima Plastics Ltd. Stock Research

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Prima Plastics Ltd. Detail

Prima Plastics Limited is in portfolio of Subramanian P. He is one of the top investors in India. The company belongs to Plastics sector .

As per the Company website it is leading manufacturer & exporter of Plastic Products in India. Below are the different categories of product line it manufactures

  • Insulated Box and Crates – Insulated box, Insulated Shipper and Crates
  • Pallets – Euro Pallets, Reversible Pallets, Cage Pallets, Pallet Containers
  • Furniture – Regular Chair, Premium Chair, Storage Solutions, Home accessories range, Trolleys, Dining tables.
  • Road Safety – Safety Cones, Barricades, Light Barriers
  • Waste Management – Household Bins, Wheeled Bins, Community Bins

The company has presence in India as well as abroad. It has 3 plants in foreign countries. Two plants are located in Cameroon West Africa and 1 plant is located in Guatemala in Central America. In India it has 4 plants 2 in Daman and one each in Kerala and Ongole.

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The corporate office is in Mumbai and Registered office is in Daman. The company manufactures products under the brand name Prima.

Now lets look at performance of this company over the years.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Prima Plastics Ltd. Stock Performance

Prima Plastics Stock Performance
Prima Plastics Stock Performance

The Company has given 11 times return in past 16 years. It has also given major returns after year 2014. Before that it was trading flat with close to 2 times return in 12 years. The major jump in stock price came during 2014 bull run period. It zoomed and touched the 300 mark.

Currently after correction it is trading just below 100 mark and is giving more than 2% dividend. the dividend rate is good. Return is less because of mute first 12 years. This may change in near future. Investors have made decent money in this counter over last 1 year period.

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Prima Plastics Ltd. My Opinion

Prima Plastics is in Plastics sector.Plastics is a growth sector. If you look around wooden and metal household items (furniture) are getting replaced with their plastic counter parts. Plastics are durable light and cheaper than wooden and metal alternatives.

Along with home furniture it creates other products as mentioned above. This being Growth sector is also testified by the fact the ace investor Subramanian P has more than one Company in his portfolio from this space.

Plastic sector has concern area as well. With growth in Environment protection initiatives and recycling the Company will get benefited. The natural resources are limited so recycling of these are much needed nowadays.

I have not invested in core plastics sector like Companies which prepare plastic items. But I will definitely explore the possibilities. I have invested in one Plastic based Company and is not willing to increase the exposure in this segment.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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