'Buy' Ddev Plastiks Shares Maintains IDBI Capital Post Robust Q1 Results — Check New Target Price
Improved financial flexibility, evident from a debt-free balance sheet and increasing FCF generation positions Ddev well to execute future capex and capacity expansions, adds IDBI Capital.
Ddev Plastiks is well poised to benefit from healthy demand outlook of domestic wires and cables industry. Given promising outlook by the management, the brokerage have marginally increased out net sales/PAT estimates by 4%/6% for FY27E.
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IDBI Capital Report
IDBI Capital has maintained a Buy stance on DDev Plastiks Industries Ltd. while revising the target price to Rs 410 from Rs 387, driven by better earnings visibility and industry tailwinds..
Q1 FY26 performance was robust, with a 13% rise in volumes and 10% increase in NSR contributing to a 23% YoY growth in revenue to Rs 7.7 billion. PAT rose to Rs 522 million with stable margins.
The firm sets out an ambitious revenue target of Rs 4,500–5,000 crore by FY30, banking on strong polymer demand from power and infrastructure sectors.
Margin profile remains healthy with Ebitda margins stabilizing near 10% and Ebitda/ton reaching Rs 15,304, demonstrating pricing strength and cost controls.
The report identifies Ddev as a near-monopoly in specialized polymers, underpinning its unique positioning and pricing power in niche markets.
A strategic capex plan includes adding over 130,000 tons in capacity over three years, with sizeable additions in HFFR, PVC, and XLPE to meet growing demand.
Sales from wire and cable customers make up 81% of the company’s revenue mix, tying business prospects directly to India’s capex boom in power and infra.
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