Equity Statistics Current Market Price Rs Week High/Low Rs /9.01 Market Capitalisation Rs. Crores Dividend Yield %

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1 MILTON PLASTICS LTD BSE Scrip Code: Containers & Packaging March 14, 2013 Equity Statistics Current Market Price Rs Week High/Low Rs /9.01 Market Capitalisation Rs. Crores Free Float Rs. Crores 8.05 Dividend Yield % 0.00 One Year Regression Beta Times BSE Volumes Trend - Average = 1.91 Thousand Company Summary Milton Plastics Ltd (MPL) was incorporated in May 1992 by taking over the assets of the partnership firm Milton Plastics. It currently manufacturers a range of plastic household items, insulated thermo ware items, vacuum flasks etc. The company has six associate industrial business units in Maharashtra (Pune and Silvassa) which do job work for Milton Plastics. The company has a technological tie-up with German major IPV that provides know-how for its softline series of thermoware. IPV also has a buyback arrangement with Milton through which 35% of softline products are exported. MPL imports the glassware range from countries like Brazil, Mexico and Indonesia. The glassware range includes drinking glasses, dinner sets, mixing bowls that are microwave-safe and heat resistant. In FY12, MPL reported net sales of Rs.38.7 crore and net profit of Rs.5.2 crore. MPL derives 100% of its revenues from domestic market. MPL is currently trading at 2.2 times FY12 earnings per share (EPS). Relative Returns Milton Plastics Ltd Sensex Returns 1M 3M 6M 1 Yr Absolute -12% -28% 5% -24% Rel. to Sensex -12% -29% -4% -31% Shareholding Pattern 100% 80% 60% 40% 20% 0% Mar `12 Jun `12 Sep `12 Dec `12 Promoter DII FII Others Board of Directors Person Bhansilal Vaghani Chiranjiv Vaghani Madhup Vaghani Viren Bhimani Devendra Negi Role NED, Chairman NED NED, NED, Independent NED, Independent Source: AR and CARE Research Note: MD: Managing Director, WTD: Whole time Director ED: Executive Director, NED: Non Executive Director, Source:BSE, Capitaline and CARE Research 1 Initiative of the BSE Investors Protection Fund

2 Background Milton Plastics Ltd (MPL) was incorporated in May 1992 by taking over the assets of the partnership firm Milton Plastics. It currently manufacturers a range of plastic household items, insulated thermoware items, vacuum flasks etc. The company has six associate industrial business units in Maharashtra (Pune and Silvassa) which do job work for Milton Plastics. The company has a technological tie-up with German major IPV that provides know-how for its softline series of thermo ware. IPV also has a buyback arrangement with Milton through which 35% of softline products are exported. It is importing the glassware range from countries like Brazil, Mexico and Indonesia. The glassware range includes drinking glasses, dinner sets, mixing bowls that are microwave-safe and heat-resistant. Business overview MPL derives its revenue primarily from only one segment i.e. thermoware products. Plastics which are the main raw material constitute bulk of the total expenditure and accounted for 81% of the total revenues in FY12. Strengths and growth drivers One of the core strengths of the company is the Milton brand name for thermostat products. The company also has wellestablished retail distribution chain in tier I cities. The company is planning to establish its presence in rural markets. The company also has plans to get into exports markets. Risk and concerns Competition from unorganized/small-scale sectors and new players getting into this industry. Future strategy and expansion plans Currently, the company has no plans of capacity expansion; however the company is planning to diversify its existing customer base by penetrating into rural markets and entering exports markets. Industry outlook The Indian Plastic & Polymers Industry is one of the fastest growing sectors. Plastics and Polymers have derived demand, and their sustained widespread usage is symbolic of tremendous growth from sectors like automobiles, electronics, telecommunications, food processing, packaging, healthcare, furniture etc. However, each of the sectors has demand for plastic and polymer in different offerings. This has led to diverse applications of plastic and polymers. Compared to global averages, the per capita consumption of plastics and polymers in India is very low. It would also require an urgent adoption of industry-wise applicable quality standards and globally benchmarked technology and manufacturing practices. The plastic industry is expected to touch Rs 1.33 lakh crores by FY16. Indian companies recycle nearly 60% of plastics in India, yet, national consumption of plastics will climb to 15 million tonnes by 2015 and the country will become the third largest consumer of plastics in the world. The highly fragmented downstream industry comprises segments like injection moulding, blow moulding and extrusion and caters to applications like packaging, industrial, irrigation, construction, consumer durables and healthcare. The Indian plastic industry is estimated to reach a value of INR 1.33 lakh crores by The demand potential is expected to shoot to approximately 14 million tons (MMT). Currently, nearly 3.05 million people are directly or indirectly dependent on the sector, however, with the increase in manufacturing companies and capacity expected to grow, the employment potential of the sector is likely to rise to close to 6 million by Initiative of the BSE Investors Protection Fund

3 Peer comparison Year ended March 31, 2012 Income statement (Rs. Crore) MPL Nilkamal PIL Total income , Net sales , EBITDA (3.3) (0.3) Ordinary PAT (1.0) Adjusted PAT (1.0) Per share data (Rs.) Adjusted BVPS (178.5) (30.6) Diluted EPS (0.7) Growth (Y-o-Y) (%) Growth in total income (15.4) Growth in net sales Growth in EBITDA (429.7) Growth in adjusted PAT (22.1) 6.0 (103.6) Growth in EPS* (5.9) 6.0 (103.6) Profitability ratio (%) EBITDA margin (8.5) 10.4 (1.3) Adjusted PAT margin (4.0) Valuation ratios (Times) Price/EPS (P/E) (5.3) Price/Book value (P/BV) NM 0.4 (0.1) Enterprise value (EV)/EBITDA NM 3.5 (41.2) Note: Nilkamal: Nilkamal Ltd., PIL: Peacock Industries Ltd. Quarterly financials Income statement (Rs. crore) Q3FY13 Q2FY13 Q1FY13 Q4FY12 Q3FY12 Total income Net sales EBITDA (0.3) (0.3) (0.4) (1.1) (0.5) Ordinary PAT (0.4) (0.5) (0.6) (2.3) (1.6) Adjusted PAT (0.4) (0.5) (0.6) (24.1) (1.6) Growth (Q-o-Q) (%) Growth in net sales (27.3) 17.6 Profitability ratio (%) EBITDA margin (2.9) (3.3) (4.1) (8.9) (4.4) Adjusted PAT margin (3.9) (5.1) (6.8) (198.8) (15.3) 3 Initiative of the BSE Investors Protection Fund

4 Financial analysis In FY12, MPL reported net sales of Rs.38.7crores up 3.1% y-o-y. Total income witnessed a decline of 15.4% during the same period. Raw materials form the largest portion of cost for MPL. In FY12, raw materials cost as a percentage of net sales was at around 81%. The company reported PAT margin of 13.4% in FY12. The total debt as on March 31, 2012 was at Rs crores compared to accumulated losses of Rs crores. MPL exhibited a cash conversion cycle of around 80 days in FY12. The company has not paid a dividend last five years. Annual financial statistics FY08 FY09 FY10 FY11 FY12 Income statement (Rs. crore) Total income Net sales EBITDA (3.1) (4.9) (3.5) (2.3) (3.3) Depreciation and amortisation EBIT (3.9) (5.7) (4.2) (2.8) (3.7) Interest PBT (27.3) (36.0) (29.9) Ordinary PAT (27.4) (35.1) (29.9) Adjusted PAT (27.4) (35.1) (29.9) Balance sheet (Rs. crore) Adjusted networth (170.0) (205.2) (235.1) (228.4) (223.2) Total debt Cash and bank Investments Net fixed assets (incl. CWIP) Net current assets (excl. cash, cash equivalents) (4.1) (10.5) Per share data (Rs.) Adjusted BVPS (136.0) (164.2) (188.1) (182.7) (178.5) Diluted EPS* (21.9) (28.1) (23.9) DPS Growth (Y-o-Y) (%) Growth in total income (13.7) (20.1) 17.5 (15.4) Growth in net sales (14.8) (10.8) Growth in EBITDA 55.9 (27.7) (35.9) 45.2 Growth in adjusted PAT 28.4 (14.9) (122.4) (22.1) Growth in EPS* 28.4 (14.9) (118.5) (5.9) Key financial ratio EBITDA margin (%) (7.1) (13.0) (10.6) (6.0) (8.5) Adjusted PAT margin (%) (48.3) (71.8) (76.5) RoCE (%) NM NM NM NM RoE (%) NM NM NM NM Gross debt - equity (times) NM NM NM NM NM Net debt - equity (times) NM NM NM NM NM Interest coverage (times) (0.1) (0.2) (0.2) (0.1) (0.3) Current ratio (times) Inventory days Receivable days Note: Financial Year (FY) refers to period from April, 1 to March, 31 4 Initiative of the BSE Investors Protection Fund

5 DISCLOSURES Each member of the team involved in the preparation of this research report, hereby affirms that there exists no conflict of interest that can bias the research of the company. This report has been sponsored by the BSE Investors Protection Fund. DISCLAIMER CARE Research, a division of Credit Analysis & REsearch Limited [CARE] has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain or from sources considered reliable. However, neither the accuracy nor completeness of information contained in this report is guaranteed. Opinions expressed herein are our current opinions as on the date of this report. Nothing in this report can be construed as either investment or any other advice or any solicitation, whatsoever. The subscriber / user assumes the entire risk of any use made of this report or data herein. CARE specifically states that it or any of its divisions or employees do not have any financial liabilities whatsoever to the subscribers / users of this report. This report is for personal information only of the authorised recipient in India only. This report or part of it should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied for any purpose. PUBLISHED BY CARE Research is an independent research division of CARE Ratings, a full-service rating company. CARE Research is involved in preparing detailed industry research reports with 5-year demand and 2-year profitability outlook on the industry besides providing comprehensive trend analysis and the current state of the industry. CARE Research also offers research that is customized to client requirements. Credit Analysis & REsearch Ltd. (CARE) is a full service rating company that offers a wide range of rating and grading services across sectors. CARE has an unparallel depth of expertise. CARE Ratings methodologies are in line with the best international practices. Head Office: 4th Floor Godrej Coliseum, Off Eastern Express Highway, Somaiya Hospital Road, Sion East, Mumbai Tel: Fax: Regional Offices: New Delhi Kolkata Ahmedabad Bangalore Hyderabad Chennai Pune Jaipur Published on behalf of The Stock Exchange Investors' Protection Fund First Floor, P J Towers, Dalal Street, Mumbai. Tel: /34