(i) Resins and Plastics Ltd. (RPL) is one of India's leading Synthetic Resin manufacturers catering to a wide range of industries today such as Adhesives, Coatings, Printing Inks, Insulating Varnishes, Wire Enamels, Lamination, Construction, Cosmetics, Textiles, and Foundries. RPL commenced its operations in 1971 for manufacturing Alkyd Resins, Epoxy Resins, Foundry Resins, Ketonic Resins, and Phenolic Resins some of which are import substitutes. RPL's manufacturing facilities are located at MIDC, Taloja in Maharashtra and GIDC, Ankleshwar in Gujarat, both of which are in close proximity to the shipping ports. RPL's strength lies in its manufacturing and strong distribution network that spans across India. RPL has its own sales offices and branches across the country and also deals through a few major distributors across different regions.

(ii) RPL also has an associate company, Pragati Chemicals Ltd. (PCL) that focuses on the manufacturing of Amino Resins, Ketonic Resins, and Epoxy Resins. PCL has a plant in Ankleshwar in Gujarat that is eco-friendly using natural gas as a source for heat.

(iii) RPL believes in leveraging technology to achieve a competitive advantage. It has a well-designed comprehensive in-house IT system that does demand generation and sales forecast projections. They also have an in-house CRM software that ensures efficient customer service and maintenance of long term business relations.

(iv) Over the years, RPL has also established itself as a noteworthy exporter of synthetic resins to the Coatings and Printing Ink manufacturers of the neighboring countries. In the coming years, they are also focusing on expanding their wings further across Asia, Africa, and the Middle East and Southeast Asian countries.

Financials Review For FY19-20

1. The Company has excellent growth in Revenue and PAT.

2. The company has zero debt on books and an excellent Current Ratio number of more than 4. Any current ratio above 2 is considered the safest company to invest in which no near term danger in case of liquidity issue.

3. The EBITDA number is growing steadily in 5 years.

4. The Company has not diluted a single share in the last 5 years and still Net Worth is growing which shows the ability of the company to generate profits from operations.

5. The company is available at attractive P/E of 12.

6. The company is consistently paying dividends. In FY19-20 they have given a dividend of Rs.4.50 per share.

Financial Reviews for FY20-21

1. Despite COVID-19, during the financial year 2020-21, revenue from operations increased to 145 Crores as against 138 Crores, an overall growth of 5%.

2. The Profit after Tax for the current year is 12 Crores as against 8.57 Crores in the previous year 2019-20, an overall growth of 36%.

3. In FY20-21, NCL has approved the amalgamation of Pragati Chemicals into Resin and Plastics.  Under this scheme,  Resin and Plastics had allotted 6,00,000 Equity Shares of 10 each in the ratio of 5 (Five) equity shares for every 3 (Three) share held by shareholders of Pragati Chemicals Limited on 3rd September, 2020 pursuant to the scheme of amalgamation.

4. Resin and Plastics has given dividend of Rs.5.50 per share in FY20-21. 5. Trade Receivables has gone up from 30 Crores to 41 Crores. Due to which the cash flow from operations has become negative in FY20-21 which is negative for the business.

Financial Reviews for FY21-22

1. During the Financial Year 2021-22, Resin and Plastics revenue from operations increased to 213 Crores as against 145 Crores, an overall growth of 47%.

2. Production and sales during the Financial Year 2021–22 were negatively impacted for a few months as a result of COVID-19 lockdown.

3. In comparison to the prior year 2020–21, the profit after tax for the current year is11 Crores, an increase of 1.15 percent overall.

4. Due to high raw materials cost the Gross margins have come down from 29% in Fy21 to 25% in Fy22.

5. PBT of Resin Plastic is 15 Crores in FY22 and Cash flow from operations is just 2 Crores. That means the conversion is just 13%. As ~11 Crores is struck in trade receivables.

6. Total capital expenditure done in FY22 is 2.67 Crores. So, Free cash flow from operations is negative.

7. The cash and cash equivalent has reduced from 14 Crores in Fy21 to 0.67 Crores in Fy22. The surplus cash available last year has been used to make investment in mutual funds and pay dividend.

8. Resin and Plastics is available at P/E of 17x which is decently priced.