National Plywood Industries Ltd (516062)
🎯 Key Takeaways
- National Plywood Industries Ltd is in a distressed phase, marked by persistent losses and negative operational performance over recent quarters. The company has swung from modest profitability in mid-2019 to sustained losses by late 2019, with no clear recovery trajectory evident in the latest filings.
- Revenue declined 80.3% QoQ to ₹2 in Q3FY20.
- ⚠️ 1) Sustained negative operating margins and shrinking revenue suggest deteriorating core business health. 2) Persistent net losses with no signs of re
- Market Cap
- ₹7
- P/B Ratio
- -0.79
- ROE
- 22.7%
- ROCE
- -60.4%
- Debt/Equity
- -1.29
📖 The Story
National Plywood Industries Ltd is in a distressed phase, marked by persistent losses and negative operational performance over recent quarters. The company has swung from modest profitability in mid-2019 to sustained losses by late 2019, with no clear recovery trajectory evident in the latest filings. Structural margin erosion and weak demand appear to be weighing heavily on performance.
📰 What's Happening
The company reported three consecutive quarters of negative operating profit (OP) and net loss from December 2019 to September 2019, with operating margins deteriorating from 2.8% in June 2019 to -28.9% in December 2019. No new orders, capacity expansions, or strategic initiatives were disclosed in the latest available filings. The absence of management commentary on operational improvements suggests ongoing headwinds without a clear remediation plan.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 |
|---|---|---|---|---|
| Revenue | 15 | 13 | 11 | 2 |
| Operating Profit | -1 | 0 | -2 | -1 |
| OPM % | -7.9% | 2.8% | -22.0% | -28.9% |
| Net Profit | -0 | 0 | -1 | -1 |
| EPS | ₹-0.15 | ₹0.08 | ₹-0.56 | ₹-0.22 |
Revenue has declined sharply from ₹15 crore in March 2019 to ₹2 crore in December 2019, accompanied by a plunge in operating margin from -7.9% to -28.9% and net loss widening from ₹-0.15 crore to ₹-1 crore. This indicates not only shrinking demand but also deteriorating cost control. The lack of profitability recovery despite cost-cutting attempts suggests weak end-market demand or pricing pressure in the plywood segment.
🔮 Management Outlook & What's Next
There is no forward guidance or strategic outlook provided in the latest filing, and management did not address future prospects in the earnings commentary. The absence of any discussion on demand revival, product diversification, or margin improvement signals a lack of proactive response to the downturn.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2019 | Mar 2020 | Mar 2020 | Mar 2020 |
|---|---|---|---|---|
| Equity Capital | 25 | 25 | 25 | 25 |
| Reserves | -33 | -34 | -33 | -32 |
| Borrowings | 11 | 11 | 11 | 11 |
| Total Liabilities | 42 | 28 | 28 | 48 |
| Fixed Assets | 11 | 4 | 4 | 4 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 42 | 28 | 28 | 48 |
The balance sheet shows stable equity of ₹25 crore with declining reserves (from ₹-32 to ₹-34 crore), indicating cumulative losses are eroding capital. Borrowings remain modest at ₹11 crore, but the asset base contracted from ₹48 crore to ₹28 crore between filings, reflecting asset sales or impairments. There is no evidence of fresh capital investment or deleveraging activity.
⚖️ Peer Comparison — Plywood Boards/Laminates
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| CENTURYPLY | 14,786 | 50.8 | 12.3% | — | 0.62 |
| STYLAMIND | 5,662 | 33.4 | 26.8% | — | 0.04 |
| GREENLAM | 5,482 | 58.9 | 10.1% | — | 0.89 |
| GREENPLY | 3,509 | 35.5 | 13.2% | — | 0.55 |
| EUROPRATIK | 2,069 | 24.0 | 50.9% | — | 0.01 |
| GREENPANEL | 1,950 | 13.7 | 12.3% | — | 0.20 |
| RUSHIL | 469 | 20.3 | 6.7% | — | 0.40 |
| ARCHIDPLY | 206 | 15.8 | 11.6% | — | 1.85 |
| WESTERNBIO | 160 | — | -59.0% | — | -4.43 |
| 516003 | 110 | 55.5 | 15.5% | — | 1.23 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Sustained negative operating margins and shrinking revenue suggest deteriorating core business health. 2) Persistent net losses with no signs of recovery raise concerns about long-term viability. 3) Negative ROCE and declining asset base indicate inefficient capital utilization and possible overcapacity or underutilization.
🧠 Analyst's Read
The company is undergoing a sharp operational contraction with no visible turnaround strategy or management communication to signal recovery. Investors should monitor for further disclosures on demand trends, cost restructuring, or any strategic alternatives, but current indicators point to ongoing distress without a clear catalyst for improvement.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-30.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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