3 Undervalued Plastic Product Stocks Trading Below Fair Value
- August 27, 2026
- Posted by: Lakshit Sharma
- Category: Market
Plastic products sector PE near 38-42. Time Technoplast trades at 18.4x. Nilkamal at 25.0x. Prince Pipes at 32.3x.
Quick Answer
Three plastic product stocks, Time Technoplast, Nilkamal and Prince Pipes and Fittings, are trading below their respective sector average price to earnings ratios while all three post positive return on equity. Time Technoplast trades at the steepest discount of the group with the highest return on equity, while Nilkamal and Prince Pipes serve furniture and piping end markets respectively. This gap between valuation and profitability is why these plastic product stocks stand out on a simple sector screen, though a formal buy rating needs deeper company specific research.
India’s plastic products industry spans industrial packaging, furniture and piping systems, with demand closely tied to construction activity, consumer spending and polymer price trends. Not every stock in the space trades at the same multiple. A screen of listed plastic product stocks against the sector average price to earnings ratio surfaces three names still priced below that benchmark.
Time Technoplast, Nilkamal and Prince Pipes and Fittings all currently trade below their respective industry PE benchmarks, despite posting positive return on equity. This piece breaks down why each stock screens as undervalued, what the underlying financials show, and the risks that come with owning plastic product manufacturers.
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Why These Plastic Product Stocks Screen as Undervalued
The plastic products industry currently carries average price to earnings ratios of close to 38 to 42 times trailing earnings across the packaging, furniture and piping sub-segments. A stock trading meaningfully below its own peer group average, while still posting positive return on equity, is a reasonable starting point for a relative valuation screen.
All three companies below clear that bar, with Time Technoplast standing out for the widest gap to the sector average among these plastic product stocks, backed by the strongest return on equity of the group.
The table below lists these three companies alongside their current price, valuation multiple and return ratios.
| Company | NSE Ticker | CMP (Rs) | PE Ratio | Sector PE | ROE | Market Cap (Rs Cr) |
|---|---|---|---|---|---|---|
| Time Technoplast | TIMETECHNO | 184.65 | 18.35 | 38.12 | 11.46% | 9,142 |
| Nilkamal | NILKAMAL | 2,085.10 | 24.99 | 38.12 | 8.05% | 3,127 |
| Prince Pipes and Fittings | PRINCEPIPE | 297.30 | 32.28 | 41.88 | 4.45% | 3,297 |
Time Technoplast: Widest Discount, Highest ROE
Time Technoplast manufactures industrial packaging products, composite cylinders and polymer based solutions for multiple end industries. The stock trades at a price to earnings ratio of 18.35, less than half the sector average of 38.12, at a current price of around Rs 185.
Return on equity of 11.46 percent is the highest of the three plastic product stocks in this list, supported by a debt to equity ratio of 0.18. On an EPS of Rs 10.09 and book value of Rs 82.82, the price to book multiple works out to 2.24.
Nilkamal: Furniture and Material Handling Products
Nilkamal manufactures plastic furniture, material handling products and crates for retail and institutional customers. Its price to earnings ratio of 24.99 sits below the sector average of 38.12, at a current share price of around Rs 2,085.
Return on equity of 8.05 percent is more modest than Time Technoplast, and the debt to equity ratio of 0.27 is the highest of the three names. On an EPS of Rs 83.88 and book value of Rs 1,057.23, the price to book multiple of 1.98 is the lowest among these three plastic product stocks.
Prince Pipes: Narrowest Discount, Low Leverage
Prince Pipes and Fittings manufactures PVC and CPVC piping systems used in plumbing, irrigation and infrastructure applications. The stock trades at 32.28 times trailing earnings, the narrowest discount to its own sector average of 41.88 among these three plastic product stocks, at a current price of around Rs 297.
Return on equity of 4.45 percent is the most modest of the group, though the debt to equity ratio of 0.09 is the lowest of the three names. On an EPS of Rs 9.24 and book value of Rs 148.74, the price to book multiple works out to 2.01.
Valuation Snapshot: PE, PB and Dividend Yield
Beyond the headline price to earnings ratio, book value multiples and dividend yield round out the valuation picture for these three companies. All three trade at fairly similar price to book multiples despite meaningful differences in return on equity.
| Company | Price to Book | Book Value (Rs) | Dividend Yield | Debt to Equity |
|---|---|---|---|---|
| Time Technoplast | 2.24 | 82.82 | 0.81% | 0.18 |
| Nilkamal | 1.98 | 1057.23 | 0.95% | 0.27 |
| Prince Pipes and Fittings | 2.01 | 148.74 | 0.34% | 0.09 |
Nilkamal pays the highest dividend yield of the three despite trading at the lowest book value multiple, while Prince Pipes and Fittings carries the lowest leverage of the group alongside its more modest return on equity.
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Risks to Consider Before Buying These Plastic Product Stocks
A discount to the sector average price to earnings ratio does not remove company specific risk for plastic product stocks exposed to polymer price cycles.
Polymer Price Volatility
Crude oil linked polymer prices can swing sharply, and the ability to pass on higher raw material costs to customers varies across packaging, furniture and piping segments.
Construction and Real Estate Demand Sensitivity
Piping and construction linked plastic products, such as those made by Prince Pipes, are closely tied to real estate and infrastructure activity, making demand cyclical.
Consumer Discretionary Demand for Furniture
Nilkamal’s furniture and material handling business is exposed to discretionary consumer and institutional spending, which can soften during periods of weaker economic sentiment.
Competitive Intensity and Pricing Pressure
The plastic products industry has numerous regional and unorganised players, and intense competition can limit pricing power even for established branded manufacturers.
How to Track These Plastic Product Stocks
Investors evaluating these three names should track quarterly volume growth, polymer input cost trends, and how each sector average PE moves relative to each company’s own multiple over time, rather than relying on the valuation gap in isolation among plastic product stocks. Comparing these numbers regularly is the most reliable way to judge whether the discount to fair value remains intact or has already closed.
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Conclusion
Time Technoplast, Nilkamal and Prince Pipes and Fittings are the three plastic product stocks currently trading below their respective sector average price to earnings ratios, while all three post positive return on equity. That combination makes them worth a closer look for investors who already want exposure to India’s industrial packaging, furniture and piping themes, though polymer price volatility and demand cyclicality mean position sizing and diversification still matter when adding these names to a portfolio.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
FAQs on Undervalued Plastic Product Stocks
Which plastic product stocks are trading below their sector average PE?
Ans. Time Technoplast, Nilkamal and Prince Pipes and Fittings are currently trading below their respective sector average price to earnings ratios, based on live NSE and BSE pricing.
Is Time Technoplast undervalued compared to its sector?
Ans. Time Technoplast trades at a price to earnings ratio of 18.35, less than half the sector average of 38.12, while delivering a return on equity of 11.46 percent, the highest among these three plastic product stocks.
Why does Prince Pipes trade closer to its sector average PE?
Ans. Prince Pipes and Fittings trades at 32.28 times earnings, the narrowest discount to its own sector average of 41.88 among these three names, reflecting its lower return on equity of 4.45 percent relative to Time Technoplast and Nilkamal.
What is the market capitalisation of Nilkamal?
Ans. Nilkamal has a market capitalisation of around Rs 3,127 crore, with a price to earnings ratio of 24.99 against the sector average of 38.12.
Which of these plastic product stocks pays the highest dividend?
Ans. Nilkamal pays the highest dividend yield of the three at 0.95 percent, followed by Time Technoplast at 0.81 percent and Prince Pipes and Fittings at 0.34 percent.
What are the main risks in undervalued plastic product stocks?
Ans. The main risks include polymer price volatility linked to crude oil, sensitivity to construction and real estate demand for piping products, discretionary consumer demand for furniture, and intense competition from unorganised regional players.
Is a low PE enough reason to buy a plastic product stock?
Ans. A price to earnings ratio below the sector average is a useful starting screen for plastic product stocks but not a standalone buy signal. Investors should also review volume growth, raw material cost management and end market demand before investing.