­Established track record and experienced management
Incorporated in 2009, MPPL has an established track record of more than a decade in plastic piping business with an experienced management. The company is managed by the Lodha family since inception. Mr. Vikas Lodha, Mr. Jeetendra Mal Lodha and Mrs. Vimala Devi have more than three decades of experience that helped company to maintain a healthy relationship with its stakeholders, along with a dealers' network in South Indian region, such as Hyderabad, Chennai, Coimbatore, Trivandrum, Cochin, Hubli, Mysore, Mangalore, etc.
Acuité believes that the company will benefit from the long track record of operations along with a healthy relationship with its customer and suppliers.

Growing scale of operations
The revenue of the company has been growing steadily since the last three years and stood improved at Rs. 351.36 Cr. in FY2025 from Rs. 293.87 Cr. in FY2023. Further, the operating margin has also been improving consistently owing to decline in the raw material prices, stood at 12.14 percent in FY2025 as against 10.35 percent in FY2024.
Further, operating revenue stood moderated for 7M FY2026, due to lower demand, expected to improve starting December 2025 onwards. However, despite subdued revenue, operating margin stood high at 18.66 percent for 7MFY2026. Additionally, the company is currently involved in the testing phase for its new product, which is expected to commence commercial production from FY2027 onwards. This is expected to further improve the revenue of the company.  
Going forward, improvement in the revenue while maintaining profitability margins will be a key monitorable.

Moderate financial risk profile
The financial risk profile of MPPL continues to remain moderate with improving networth, low gearing and healthy debt coverage metrics. The tangible networth stood improved at Rs. 76.37 Cr. on March 31, 2025 from Rs. 50.08 Cr. as on March 31, 2024 due to  profit accretion. The gearing continues to remain below unity at 0.50 times in FY2025 (0.53 times in PY). TOL/TNW and Debt-EBITDA levels also continue to remain low at 0.81 times and 0.89 times in FY2025 respectively.
Further the coverage metrics stood healthy with interest coverage ratio (ICR) at 14.95 times and debt service coverage ratio (DSCR) at 6.87 times in FY2025.
The financial risk profile is expected to remain on similar levels on account of no debt funded capex plans over the medium term.

­Moderate working capital operations
The moderate working capital operations of MPPL are evident from gross current assets (GCA) of 108 days in FY2025 as against 70 days in FY2024. The increase in GCA days is mainly attributable to increased debtor days of 81 days in FY2025 as against 48 days in FY2024 owing to extension in its average credit period upto 120 days to its customers. Further, inventory holding period stood at 20 days in FY2025 as against 16 days in the previous year. On the other hand, the creditor days stood low at 17 days in FY2025 (16 days in PY). However, the average bank limit utilization stood moderate at 68.73 percent for the last seven months ended October 2025.

Highly competitive industry with susceptibility of margins to volatility in raw material prices
The pipes and fittings sector is marked by intense competition, with players from both organized and unorganized segments. The fragmented nature of the market restrict pricing flexibility of industry players. The key raw materials; plastic granules and master batch are derived from crude oil, making input costs highly sensitive to global price movements. Any sharp change in crude oil prices can directly affect profitability. While MPPL’s established supplier relationships provide some cushion by enabling fair price negotiations, the company’s ability to sustain operating margins over the medium term will remain an important factor to monitor.