Broker’s call: Ddev Plastiks (Buy)

Target: ₹387

CMP: ₹256.20

Incorporated in 1985, Ddev Plastiks Industries Ltd is one of the largest polymer compound manufacturers in India. The company caters to a wide array of industries such as power cables, pipes, furniture, footwear, and packaging. Ddev Plastiks has 5 modern manufacturing plants located in West Bengal, Daman & Diu, and Dadra & Nagar Haveli. As of Mar’2025, these plants have a combined production capacity of 233,400 tonnes per year.

We believe increased capacity, higher share of value-added products and optimal capacity utilisation will pave the way for sustainable earnings growth in the near future.

Ddev Plasticks enjoys a monopoly in specialised polymers in the domestic market. We like the company given the pedigree of the management, focus on being a niche polymer player catering to diversified industries, robust 200+SKU base, long-term association with the clients and debt-free balance sheet.

We forecast Net sales/EBITDA/PAT to grow at a CAGR of 13.4/17.9/19.9 per cent over FY25-27E, respectively. The stock has traded at an average PER of 14x since its listing post demerger from Kkalpana Industries. Its highest and lowest PER since listing till now were at 24.7x and 5.8x, respectively.

We initiate coverage on Ddev Plastiks with a Buy rating and TP of ₹387, assigning 15x PER of FY27E EPS of ₹26.

Published on July 10, 2025