OkPlay India - Can it turnaround?

Hello Everyone

[Ref: AR, Mgmt Interviews, Screener, Investor Presentation]
PS: While i have contributed in small ways to certain threads, first instance of starting a new one. Apologies for anything which doesn’t conform to the recommended guidelines.

Established in 1989, OK Play India Limited operates in the manufacturing sector, specializing in plastic-molded products, automotive components, and e-vehicles.

The company’s plastic-moulded products encompass toys, school furniture, outdoor play equipment, and point-of-purchase products.

Within the automotive components division, OKPlay offers a diverse range of products, including plastic fuel tanks, urea tanks, and water tanks for commercial vehicles, tractors, and construction equipment. Additionally, the company manufactures various other plastic parts, such as bus seats, fenders, consoles, and cabin roofs, catering to the construction equipment, tractor, and commercial vehicle industries. Notably, OkPlay has earned a reputation for producing high-quality goods and has become a market leader in the plastic fuel tanks for heavy commercial vehicles having 85% market share.

Since 2015, OKPlay has been actively involved in the EV space, positioning itself advantageously to capitalize on India’s growing EV penetration and secure a substantial market share.

So far the finances and ratios of company has not been something to speak about but now winds of change are blowing.
Don’t think Company was doing Earning Conference Calls earlier, started only couple of quarters back.

Indian Toy Industry

  • Estimated Toys market in India anywhere between 18000-20000 Cr and is currently highly Unorganized.
  • So far it is highly cheap Chinese Import dominated.
  • Lately Government Policies has been supportive of Indian Toys Industry
    • Introduced BIS Norms from April 2020
    • Import Duty increased to 70%
    • PLI Scheme for Toys Industry

OkPlay Toy Vertical

  • Mainly deals in 3 segments
    • Indoor Toys
    • Outdoor Toys
    • School Furniture Segment
  • Oldest Player but had very small market share due to China dominance
  • So far have been primarily B2B
  • Clients includes School Chains, Builders, Resorts, Hospitals

Automotive Segment

  • Leader in Plastic Fuel Tanks with 85% market share
  • Single source supplier to Ashok Leyland
  • In talks with Tata and if that’s successful may setup a plat in JSR or Pune
  • Fortunes Linked with CV Market
  • Other Client includes: JCB, Eichers, Volvo etc

EV Segment

  • First company to make EV vehicles from engineering grade plastics.
  • Total 12 variants on 3-W platform including E-rickshaws, vending carts, E-Loaders, Garbage vans
  • HPCL has taken a stake in this vertical. Also partnered to supply vehicles for gas delivery. 1000 EV delivery planned for next few Qrtrs.
  • Eyeing Last mile delivery for logistics companies
  • Started EV Segment in 2015, lot of investments so far.
  • Commercial started only 3-4 months back so last Qtr. contributed only 2.5 Crore revenue

Growth Triggers

  • 2nd generation of Promoters have taken up day to day working and seems to have better clarity of vision
  • Preferential allotment around 60 rs recently to promoters and other non-promoter group
  • BIS certification can be strong tailwind for toy segment
  • BIS Certification is not easy for cheaper Chinese products
  • Actively Venturing on B2C with Online and Modern retail channels
  • Available on Hamleys, Firstcry, Amazon etc
  • Venturing into contract manufacturing for private label products for US/UK
  • Recent tie up with MGA Entertainment for contract manufacturing
  • Another tie up with Australian company Kmart for contract manufacturing of ANKO brand
  • Company started supplying windmills covers for German company MANN-HUMMEL
  • Toy business to grow over 100%
  • Expect substantial amount of non-automotive business going forward
  • EV Segment can be big lever for growth. Mgmt. confident of 5X growth (on smaller base) for next few years.
  • Targeting 20%+ EBIDTA margin
  • PLI Scheme for Toy: 3500 Crore PLI scheme. Only listed Toy company eligible
  • FY 23 revenue was around 182 crore which is up 80% over FY22.
  • Mgmt guided for 300 crore+ revenue in FY24.


  • Debt to Equity stands around 2.93
  • Promoters Pledge is close to 72% (37.68% out of total promoter holding of 51.83%) which again is not comforting
  • Net Cashflow remains negative though cashflow from operations are improving
  • EV business is highly competitive, and 3-w is highly fragmented too. While mgmt is bullish, need to watch out for next 3-4 Qtrs for the actual revenue figures
  • HPCL Pilot of EVs for gas delivery vehicle is non-binding for distributor. Need to watchout if distributors opt for it or not.
  • Stock has run a lot in recent past in anticipation of better prospects

Disclosure: Holding 1% of PF at around 105 average. Would wait and watch before increasing the qty. Q1 results are on 11th Aug.

Ratios at a glance

Clients Across the Segment


Revenue Mix [ EV is miniscule]

HPCL Strategic Partneship


The result appears not as per guidance. Sales have been approx 45 Cr only and hence management claim of doing 300 Cr in FY 24 appears unlikely. The finance cost has reduced indicating reduction in debt. With the reduced sales and lower PAT, the valuation as of now is
high. Things can only improve if the subsequent quarters turn to be very strong which can only be expected if there is some concall from the mgmt. In absence of the same, how does one keep conviction. Any scuttle butt on the operations?

I concur with your observation. The results were not up to the mark and market reacted accordingly. I wanted to post an update yesterday but refrained since wanted to hear out from management in concall wrt both revenue guidance as well as segment wise performance. You are right on finance cost and that has aided company to come in Black. The share capital is also up due to preferential allotment made at Rs. 61. I am in wait and watch mode - not adding more unless get good clarity

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Sharing here an interview of Raghav Handa, Ok Play, I found on YouTube

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Good interview but there have been no updates for Q1-24 from the management. The commentary last quarter was very aggressive, especially on toys division which was supposedly showing progress on monthly basis. I don’t think it reflected in this quarter.

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Not sure if I am misreading this, but at the face value it means that “shine star build-cap” is legally claiming pledged shares due to default in payment. Stock hit the LC today.


Pledge of share for Fund raising ? Whether OK play is doing any expansion needs to be seen.

Yes, they were planning expansion but they were very clear that it wouldn’t be through the debt route.

@pahaaadi I see this as a red flag, as they were quite confident about repaying debt, I was very excited about this company, especially after the last call, this quarter they had disappointing results.

They had partnered with Anko and mga which should increase volume in the toys segment which we couldn’t see in this quarter, but the most off thing is they chose to not share anything with the investor, after 2 quarters of good results they had concall, they had investor presentation, now just after one disappointing quarter they chose to skip it.

Also, I tried contacting investor relations 2-3 times, but they always made excuses and did not connect with the management.



Recent article on toy industry shift from china to india.

Disclaimer: Invested in July 2022

News is one month old. But the moat of OK play with plastic moulding has many use cases.

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Incorporated in 1988, OK Play India Ltd manufactures plastic molded products, ranging from automotive components to children playground equipment.

Business Overview:

OKPIL is an ISO 14001:2015 and ISO 45001:2018 certified largest Homegrown Toys Brand in India. It deals in Indoor Toys and Outdoor Play Equipment, School Furniture and Healthcare Products. OK Play is an acquired brand of OK Play UK, London.

Company sells products under its brand name – OK Play. It uses Roto Moulding, Blow Moulding, and Injection Moulding techniques for their plastic moulded products.

Retail & Distribution Network:

Company’s products are available in 150+ stores in India and abroad with 100+ dealer Networks and Touchpoints. It has 75+ Toys SKUs, 12 Variants of Electric 3-wheelers and 85%+ share in Plastic fuel tanks.

Acquisition & Split:

Company acquired 100% stake in Isht Technologies Private Limited on 27th February 2023. On 11th March 2024, company approved of sub-division/ split of existing Equity Shares in the ratio of 1:1

Product Profile:

a) Toys: Active Play, Games, Pre School, Ride -Ons,Sports.
b) Indoor Play: Easels, Funstations, Multi-Purpose, Rockers, See Saw, Slides, Swings.
c) Outdoor Play: Gym Equipment, Stand Alone Series, The Castle Collection, The Dinosaur Collection, The Nature Collection, The Robot Collection.
d) School Furniture: Collaborative Series, Cute Chair Series, Classroom Series, Kids Desk Series, Plastic Series, Seating Series, Wooden Series.
e) Healthcare: OK Play Otis, OK Play Spier, OK Play Horse Rider, OK Play Sky Stepper, OK Play Palace.
f) Auto Components: Plastic fuel tanks, urea tanks and water tanks for commercial vehicles, tractor and construction equipment industries, bus seats, fenders, consoles, cabin roofs, etc. for the construction equipment, tractor, and commercial vehicle industries.

Manufacturing Facilities:

Company has 2 production facilities viz. one at Sohna, Haryana with a built up area ~1.20 Lac sq.ft. and another in Ranipet, Tamil Nadu, with Builtup area ~40,000 sq.ft.


a) Toys: Hamleys, Bal Bharti Public School, Podar Education Network, Bachpan, City Montessori School, Integral University.
b) Electronic Vehicles: Lucknow Metro Rail Corp., Eicher, HUL, Ashok Leyland, Fortis.
c) Auto Products: JCB, Sonalika International, Mahindra, TVS, Tata Hitachi.

Strategic Partnership with HPCL:

a) HPCL has invested in OK Play Group Company.
b) OK Play will use HPCL petrol pumps to set up swapping stations and experience showrooms with Energy Operators like VoltUp LPG Delivery.
c) OK Play will deploy 1,000 vehicles in Phase 1 to deliver LPG cylinders across Delhi.


Company recently signed contracts for contract manufacturing with a large Indian player and a major global toy manufacturer. It will be supplying toys to the Middle East, China, and Australia and will focus more on exports.

I am not a SEBI registered advisor and this report is solely for educational purposes. The information provided does not constitute any form of recommendation. Therefore, please conduct your own analysis before engaging in any trades or consult your financial advisor. I holds no responsibility for intended decisions and any resulting financial losses.

#nfa #dyor