Shakti Polytarp

Comprehensive Fundamental & Financial Analysis of Shakti Polytarp Limited

Shakti Polytarp Limited is an Indian manufacturing enterprise operating within the polymer, packaging, and technical textiles sector. The company specializes in producing multi-layered poly tarpaulins, heavy-duty industrial covers, and protective agricultural sheets.

Corporate Overview & Business Model

Shakti Polytarp caters to diverse sectors including agriculture, logistics, construction, infrastructure, and commercial packaging. Its core business model focuses on end-to-end manufacturing, custom product design, and distribution across domestic and international markets.

Financial Performance & Historical Trends (FY Breakdown)

Evaluating a company’s fundamental health requires a close examination of its Multi-Year Financial Performance (FY Trends), Profit After Tax (PAT) growth, and Return on Equity (ROE).

Financial Growth Summary

DuPont Analysis (ROE Decomposition)

DuPont Analysis breaks down Return on Equity (ROE) into three distinct components to uncover the operational and financial drivers of shareholder returns:

                          ┌──────────────────────────┐
                          │    Return on Equity      │
                          │         (ROE)            │
                          └────────────┬─────────────┘
                                       │
            ┌──────────────────────────┼──────────────────────────┐
            │                          │                          │
┌───────────┴───────────┐  ┌───────────┴───────────┐  ┌───────────┴───────────┐
│   Net Profit Margin   │  │    Asset Turnover     │  │   Financial Leverage  │
│  (Profitability Ratio) │  │  (Efficiency Ratio)   │  │   (Risk/Capital Structure)│
└───────────────────────┘  └───────────────────────┘  └───────────────────────┘

1. Net Profit Margin ($\frac{\text{PAT}}{\text{Revenue}}$): Indicates how efficiently the company converts revenue into bottom-line profits. For Shakti Polytarp, controlling raw material input costs directly stabilizes this margin.

2. Asset Turnover ($\frac{\text{Revenue}}{\text{Total Assets}}$): Measures asset utilization efficiency. Higher volume sales across industrial packaging channels improve asset turnover rates.

3. Financial Leverage ($\frac{\text{Total Assets}}{\text{Total Equity}}$): Reflects the proportion of debt financing utilized relative to shareholder capital.

Initial Public Offering (IPO) Structure & Key Dates

The company entered the capital market through an SME Initial Public Offering to raise fresh capital aimed at working capital requirements and general corporate purposes.

• Issue Window: September 15, 2026 – September 17, 2026

• Price Band: ₹56 to ₹59 per share

• Face Value: ₹10 per share

• Lot Size: 4,000 shares

• Total Issue Size: ₹26.93 Crores (Fresh Issue of 45,64,000 equity shares)

• Minimum Investment: ₹2,36,000 (at the upper price band)

• Allotment Date: September 18, 2026

• Tentative Listing Date: September 22, 2026 (BSE/NSE SME)

• Registrar: Skyline Financial Services Pvt. Ltd.

Key Strengths & Risk Factors

Competitive Strengths

• Diversified product portfolio serving agricultural, industrial, and infrastructure sectors.

• Established manufacturing infrastructure with quality assurance standards.

• Strong distribution networks across key regional commercial hubs.

Investment Risks

• Raw material price sensitivity tied to global crude oil and polymer markets.

• Working capital intensity standard within manufacturing and industrial supply chains.

• High reliance on seasonal agricultural cycles for tarpaulin demand.

• RHP

• IPO – DRHP and Industry Report

• An analysis of Shakti Polytarp Limited compares its key financial valuation multiples—specifically its Price-to-Earnings (P/E) ratio and Return on Equity (ROE)—against its peer group in the polymer-based packaging and tarpaulin sector.

  1. Executive Summary & Core Metrics

  • Price Band: ₹56 – ₹59 per share

  • FY26 Restated Financial Highlights:

    • Revenue: ₹216.10 Crore

    • Profit After Tax (PAT): ₹10.06 Crore

    • EPS (Diluted): ₹8.00

    • NAV per share: ₹22.18

  2. Valuation & Profitability Comparison (SME Industry Peers)

  Company Name	Revenue (₹ Cr)	Basic/Diluted EPS (₹)	P/E Ratio (x)	Return on Equity (ROE / RoNW %)	NAV per Share (₹)
  Shakti Polytarp Ltd	216.10	8.00	7.38x (Pre-Issue) / 10.05x (Post-Issue)	44.04%	22.18
  Commercial Syn Bags Ltd	383.98	6.75	43.93x	16.86%	43.03
  Shree Tirupati Balajee Agro	358.65	1.08	24.26x	3.49%	31.61