At a Glance
Gothi Plascon (India) Ltd, once a humble plastic goods maker, now moonlights as a Pondicherry landlord for IT parks. The stock trades at a spicy ₹48.8 with a P/E of 32.7, because apparently hope is expensive. With sales crawling at ₹1.1 crore this quarter (down 12%), profits skidding into red (₹-0.12 crore), and auditors playing musical chairs, this one screams “risky yet intriguing”. But hey, at least there’s a 4.1% dividend yield to keep you from crying.
Introduction
Imagine a company that starts by selling plastic buckets, gets bored, and decides to play SimCity with real estate. That’s Gothi Plascon. While peers like Cello World and Hawkins are busy making money and products, Gothi has parked itself in the commercial leasing business, collecting rent like a sleepy landlord. The market cap? ₹49.8 crore – barely the cost of a Mumbai sea-facing flat.
The story gets juicier. Their Q1FY26 results show revenue falling and net profit sinking into losses. Add a sprinkling of auditor resignations (yes, multiple ones) and an upcoming AGM drama. Yet investors still hold on, maybe for that sweet dividend or sheer masochism.
Business Model (WTF Do They Even Do?)
Once upon a time, Gothi Plascon made plastic products. Then someone decided, “Why make buckets when we can own buildings?” The company leveraged its land bank in Pondicherry, developed ITES parks, and began leasing to MNCs. Essentially, it’s a niche real estate play with a focus on commercial properties.
The model is simple:
- Acquire land → build spaces → lease to IT companies → collect rent → repeat.
- However, sales have stagnated for years (~₹4.3 crore annually), making it less a growth story and more a fixed-deposit-with-equity-risk.
Their diversification is “meh” – no large expansions, no massive projects, just steady rentals. Real estate may be location-driven, but here the location is doing all the work while management enjoys chai.
Financials Overview
Q1 FY26 Snapshot:
- Revenue: ₹1.1 crore (down 12% YoY)
- EBITDA: ₹0.49 crore (OPM collapsed to 44.6% from 68%)
- Net Profit: ₹-0.12 crore (loss after several green quarters)
- EPS: ₹-0.12 (annualized EPS negative → P/E not meaningful this quarter)
TTM (Mar 2025):
- Revenue: ₹4.37 crore
- PAT: ₹1.63 crore
- EPS: ₹1.6
- Current P/E: 32.7 (using last year’s EPS, because this quarter was a mess)
The company’s profitability is hanging by a thread. High OPM in past years (>60%) was a charm, but rising expenses are catching up.
Valuation
Let’s crunch it the EduInvesting way:
1. P/E Method
- EPS (TTM): ₹1.6
- Industry P/E: ~30x
- Fair Price = ₹1.6 × 25–30 = ₹40–₹48
2. EV/EBITDA
- EBITDA (TTM): ₹2.6 crore
- EV: ~₹50 crore (Market Cap ≈ EV, debt negligible)
- EV/EBITDA ≈ 19x (industry avg 15x)
- Fair Value = ₹40–₹45
3. DCF (Simplified)
Assume: FCF ₹1.5 crore, growth 2%, WACC 12% →
Fair Value ≈ ₹42
💡 Valuation Range: ₹40–₹48 (currently at the upper edge → no room for error)
What’s Cooking – News, Triggers, Drama
- Auditor Resignation: N. Singhal quits, Achha Associates joins. Never a good sign when auditors flee.
- AGM on 1 Sept 2025: Expect shareholder questions (and probably yawns).
- Dividends: Payout >100% of profits in past years – unsustainable but makes retail happy.
- Triggers: Any new real estate project could re-rate this stock, but no concrete announcements yet.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 17.3 |
| Liabilities | 7.1 |
| Net Worth | 11.2 |
| Borrowings | 2.2 |
Auditor’s Roast: Assets up, but reserves falling. Borrowings reappear (₹2.2 crore), probably for maintenance. Balance sheet is clean-ish, but not inspiring.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Ops | 2.25 | 2.28 | 2.90 |
| Investing | -0.09 | 0.00 | -3.02 |
| Financing | -2.17 | -2.18 | 0.01 |
Audit Joke: Ops cash flow decent, but a big investing outflow in FY25 (capex?). Financing barely active – company runs like a rental house with occasional paint jobs.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 14.3% |
| ROCE | 18.1% |
| P/E | 32.7 |
| PAT Margin | 37% |
| D/E | 0.2 |
Verdict: Good returns, scary valuation. Dividend yield saves the day.
P&L Breakdown – Show Me the Money
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 4.25 | 4.38 | 4.37 |
| EBITDA | 2.62 | 2.50 | 2.60 |
| PAT | 1.65 | 1.53 | 1.63 |
Commentary: Flat as a dosa. Growth? Nah. Stability? Yes. Profits are holding but not scaling.
Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Cello World | 2136 | 338.8 | 38.7 |
| Hawkins | 1115 | 114.7 | 41.5 |
| Borosil | 1090 | 64.6 | 61.1 |
| Gothi Plascon | 4.4 | 1.6 | 32.7 |
Roast: Peers actually make products and profits. Gothi just rents and collects dividends. Market still values it like a growth stock – suspicious.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 73.4% (stable)
- Public: 26.6% (retail army holding bags)
- Buzz: No M&A, no FPO. AGM may bring a hint of future plans.
EduInvesting Verdict™
Gothi Plascon is like that landlord who collects rent but never renovates the property. A tiny real estate play with high dividends, steady cash flows, and zero growth ambition. Q1FY26 loss raises eyebrows, and the auditor exit is not comforting. Valuation is stretched, riding on past dividend glory rather than future prospects.
SWOT at a Glance
- Strengths: High dividend yield, low debt, steady cash flows.
- Weaknesses: Poor growth, tiny revenue base, auditor drama.
- Opportunities: New property developments could change narrative.
- Threats: Any tenant exit or regulatory hit → big trouble.
Final Word: At ₹48, it’s priced to perfection. Investors should watch the AGM and Q2 results like hawks. This is not a growth rocket – it’s a dividend cow grazing slowly.
Written by EduInvesting Team | 31 July 2025SEO Tags: Gothi Plascon, Real Estate, Dividend Stocks, Pondicherry ITES
