1. At a Glance
Once upon a polymer, there was a Kolkata-based company that turned plastic into profits faster than politicians turn promises into press releases —DDev Plastiks Industries Ltd. With amarket cap of ₹2,944 crore, this relatively young player (incorporated in 2020) has quickly becomeIndia’s largest polymer compounding manufacturer. Its installed capacity of2,33,400 MTPAmakes it a heavyweight in a sector where others are still melting pellets and dreaming.
The stock currently trades around₹284, down 3% from the last close, but with aP/E of 14.9x,ROE of 24.9%, andROCE of 33.9%, this plastic packer is flexing some serious operational muscle.
Over the last three months, the stock has held firm, buoyed by strong Q2FY26 results showing yet another quarter of profitability. As theBhagavad Gitateaches, “Karmanye vadhikaraste ma phaleshu kadachana” — you have control only over your work, not over its results. DDev seems to have taken that to heart — they’ve worked the polymers hard, and the results are melting beautifully.
2. Introduction
It’s not often that a company born just before COVID-19 now stands as a ₹3,000 crore powerhouse. But DDev Plastiks has done just that — transforming a 2020 demerger baby into a fully grown compounding beast.
Think of it as the Reliance Jio of polymers — fast, aggressive, and determined to dominate every plastic compound niche before anyone else figures out what just happened. Fromcable compoundstoengineered plastics for automobiles and appliances, and even the trendyHFFR compounds(Halogen-Free Flame Retardant for the eco-conscious cable crowd), they’ve got it all.
What’s fascinating is thepace. From the 2022 NCLT-approved demerger of Kkalpana Industries’ compounding business to today’s expansion spree worth ₹300+ crore in capex, DDev has been running a relay with itself — and winning every lap.
So, what makes DDev tick? Cheap raw material sourcing (hello Reliance, IOCL, ONGC Petro-additions Ltd), 80% capacity utilization, and a customer list that reads like an industrial who’s who:Havells, KEI Industries, Finolex Cables, Apar Industries, and Torrent Power.
But here’s the best part — the company’s not just content with domestic dominance. Nearly24% of its Q1FY25 revenuecame from exports. Because apparently, even foreign wires and shoes need some Indian polymers to stay in shape.
3. Business Model – WTF Do They Even Do?
Let’s decode this plastic puzzle.
DDev Plastiks isn’t into plastic chairs or Tupperware knockoffs. No — this ischemistry with attitude. They manufactureplastic compounds— the magical blends that go into everything from wires and cables to footwear, automobiles, and appliances.
Their product categories sound like a chemistry professor’s fever dream:
- Cable Compounds:Think PVC, Sioplas, MV XLPE up to 66 KV, Semicons, HFFR — the stuff that makes power cables safe and flexible.
- Antifab & Masterbatches:The unsung heroes of plastics — PP base and color additives that make everything look sexy and work stronger.
- Engineering Plastics:ABS, Nylon 6, Nylon 66, PBT, PC — these are what your car dashboard, laptop casing, and washing machine shells are made of.
- Footwear Compounds:The cushiony magic that turns a ₹500 chappal into a ₹2,000 sneaker.
- Rotomoulding Powders:For everything from water tanks to those
- funky outdoor dustbins.
They’ve got plants inDadra, Silvassa, and Kolkata, with the current 2,33,400 MTPA capacity running at 80%.
And they’re not stopping. Theircapex planincludes new HFFR capacities and greenfield projects across India — totaling₹300 crore+till FY27. That’s a lot of polymer dreams hardening into real assets.
So yes, in short — they don’t make plastic, they make what makes plastic useful.
4. Financials Overview
Quarterly Comparison Table (₹ crore)
| Metric | Q2FY26 (Sep’25) | Q2FY25 (Sep’24) | Q1FY26 (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 680 | 580 | 769 | 17.2% | -11.6% |
| EBITDA | 64 | 64 | 73 | 0.0% | -12.3% |
| PAT | 47 | 45 | 52 | 4.4% | -9.6% |
| EPS (₹) | 4.55 | 4.32 | 5.04 | 5.3% | -9.7% |
Annualised EPS = ₹4.55 × 4 = ₹18.2 → P/E = ₹284 / ₹18.2 ≈ 15.6x
That’s a fair valuation for a high-ROCE polymer leader — especially one growing faster than your average chemical stock in this market.
Commentary:Margins dipped QoQ but stayed healthy YoY. Blame it on monsoons, raw material swings, or cable industry demand cycles — but ₹47 crore net profit on ₹680 crore sales is still a solid 6.9% PAT margin.
In an industry where volatility is hotter than molten PVC, holding margins stable is basically winning.
5. Valuation Discussion – Fair Value Range Only
Let’s get mathematical (and slightly masochistic).
Method 1: P/E ValuationEPS (TTM) = ₹19.09Peer average P/E (Pidilite, Deepak Nitrite, Atul, BASF India) ≈ 45xApplying conservative multiple (mid-cap discount): 18x–22x👉Fair Value Range = ₹343 – ₹420
Method 2: EV/EBITDAEBITDA (TTM) = ₹284 croreEnterprise Value ≈ ₹2,944 + ₹46 (debt) – ₹34 (cash) = ₹2,956 croreEV/EBITDA = 10.4x (current)Peer average: 14–18x for specialty chemicals👉 Re-rating potential up to ₹3,900–₹4,900 crore EV = ₹375–₹470/share
Method 3: DCF (Simplified)Assume revenue growth 15% CAGR till FY30, margin stable at 10%, discount rate 11%.Intrinsic range = ₹330–₹410
🎯Fair Value Educational Range: ₹330–₹420/share(Disclaimer: This fair value range is for educational purposes
