🚫 Avoid Open Now Packaging

Manika Plastech Limited IPO

₹125 Cr · Fresh Issue & OFS · Packaging

Price Band
₹40 – ₹43
Lot: 348 shares (₹14,964)
GMP (Grey Market)
₹10 (+23.26%)
Est. listing ₹53
Issue Size
₹125 Cr
Fresh Issue & OFS
Market Cap
₹501 Cr
At upper band
P/E Ratio
22.4x
P/S: 1.1x
Listing Date
21 Sep 2026
BSE & NSE
IPO Timeline
Opens
11 Sep 2026
Closes
16 Sep 2026
📋
Allotment
17 Sep 2026
Refund
18 Sep 2026
📈
Listing
21 Sep 2026
📄 Official Docs RHP (Red Herring Prospectus) ↗ DRHP ↗
🚫
IPO India Hub: Strong Avoid
Conviction
3/10
The company faces a severe revenue contraction of -37.2% over two years, collapsing from ₹437.3 Cr to ₹162.7 Cr in FY0, which signals fundamental operational distress that no valuation discount can offset. While the P/E of 22.4x appears fair at 0.97× sector midpoint, the collapsing top line and 8% net margin indicate the business is in structural decline, not temporary weakness.
Our Analysis — Key Points
✓ Strength
Valuation appears fair on P/E basis
The P/E of 22.4x sits at 0.97× the niche sector midpoint of 23x, placing it within the Subscribe threshold. The company also maintains a healthy D/E of 0.6x and ROCE of 18.77%, suggesting capital efficiency in normal operating conditions.
✓ Strength
Strong GMP signals market confidence
The 30.23% grey market premium exceeds the 25% SME bullish threshold, indicating retail and institutional demand. Promoter commitment remains solid at 74.95% post-issue, with only 26.3% OFS, suggesting insider confidence in recovery.
⚠ Risk
Catastrophic revenue decline in FY0
Revenue collapsed 62.8% year-on-year from ₹437.3 Cr (FY-1) to ₹162.7 Cr (FY0), and the 2-year CAGR is -37.2%. This is not a cyclical dip but a structural breakdown that raises questions about market loss, operational failure, or data anomaly that management must clarify before listing.
⚠ Risk
Deteriorating profitability despite valuation
Net profit margin of 8% is thin for packaging, and PAT declined 41.5% year-on-year despite the P/E appearing fair. The company is burning cash relative to its shrinking revenue base, making the IPO proceeds critical for survival rather than growth.
₹ Valuation
Fair P/E masks underlying distress
At 22.4x, the P/E is 0.97× the sector midpoint and would normally trigger a Subscribe verdict. However, this valuation assumes earnings stability; the -37.2% revenue CAGR and -17.8% PAT CAGR mean the denominator is likely to shrink further, making today's P/E a false bargain.
👁 Watch
Monitor FY1 results post-listing closely
Investors must demand clarity on whether FY0's collapse was a one-time event (asset sale, customer loss, supply disruption) or the start of terminal decline. If revenue does not stabilize or rebound within 12 months, the stock will re-rate downward sharply.
Top Analyst Reviews
Analyst / Firm Rating Known For Review
IPO India Hub
Our independent review
Avoid Original analysis based on DRHP & public financials This page
Dilip Davda
Chittorgarh.com
See review India's most followed independent IPO analyst Search on Chittorgarh →
Capital Market (CM Rating)
CapitalMarket.com
See review Widely-cited "New Issue Monitor" reports Search on CapitalMarket →
ICICI Securities
ICICIdirect Research
See review SEBI-registered broker research desk Visit ICICIdirect →
IPO Guru Analyst Leaderboard
ipoguru.in
See rankings Ranks 49 analysts by real IPO outcome accuracy View leaderboard →

External links go to each platform's IPO section — search for "Manika Plastech Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.

Company Snapshot
Revenue ₹435.98 Cr
Net Profit ₹22.40 Cr
Industry Packaging
Issue Type Fresh Issue & OFS
Promoters NIKUNJ MOHANLAL KAPADIA, MUNJAL NIKUNJ KAPADIA, MIHIR NIKUNJ KAPADIA, PRATIK NIKUNJ KAPADIA AND VRIDAA HOLDING TRUST
Lead Managers Pantomath Capital Advisors
Frequently Asked Questions
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