Tokyo Plast International Ltd

Tokyo Plast International Ltd has a debt-to-equity ratio of 0.32, indicating a relatively conservative capital structure with limited leverage. The company's current ratio of 1.69 suggests it has sufficient short-term assets to cover its liabilities, though its liquidity risk is assessed as medium due to negative net cash after subtracting total debt. Operating cash flow of 77.63 million INR contrasts with capital expenditures of -112.20 million INR, indicating significant reinvestment in the business.

Profitability metrics show a return on equity of -0.001 and a return on assets of -0.0007, both of which are negative, signaling poor returns for shareholders and asset utilization. These figures fall below the typical expectations for the Non-Paper Containers & Packaging industry, which generally sees positive returns on equity and assets.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and customer concentration risks.

Looking ahead, the company's revenue is expected to grow, though the exact magnitude is not specified. The negative net income of 618,000 INR in the latest reporting period suggests that profitability remains a challenge, and the company must address cost structures and pricing strategies to improve margins.

Risk factors include medium liquidity risk and a negative net cash position after subtracting total debt. Dilution risk is assessed as low, with no significant dilution potential identified in the basic shares outstanding. However, the company's capital expenditures and operating cash flow suggest a need for careful monitoring of cash flow management.

Recent events include the disclosure of a negative net income and a significant capital expenditure, which may indicate ongoing investments in the business. Analyst estimates for the latest actual EPS and revenue are 7.76 INR and 721.84 million INR, respectively, providing a benchmark for performance evaluation.

Net income surged 904.8% year-over-year to INR 10.0 million, signaling a strong recovery in profitability.

Operating income grew 59.0% year-over-year, demonstrating improved core operational efficiency and cost management.

Free cash flow improved by 26.2% year-over-year, indicating better cash generation despite negative absolute levels.

The debt-to-equity ratio of 0.32 is above the cohort median, suggesting a conservative leverage profile.

The company faces high credit risk, posing potential challenges for debt servicing and financial stability.

Cash conversion of -125.62% is in the bottom quartile, highlighting severe cash flow inefficiencies.

Revenue INR 724.7M, +9,2% YoY; Operating income +52,7% YoY.

• ▍Revenue INR 724.7M, +9,2% YoY
• ▍Operating income +52,7% YoY
• ▍Net income +31,0% YoY
• ▍Free cash flow −8,1% YoY
• ▍Net margin 1.8%