AMS Polymers Limited

Basic Materials — Specialty Chemicals · BSE

₹46.23₹0.00 (0.00%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:53 pm

Understanding the Business

Company site ↗

The 60-second version of AMS Polymers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

AMS Polymers Limited manufactures, trades, imports, exports, and deals in specialty chemicals in India.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees19

Annual revenue₹110 Cr

How does it make money?

Turns over ₹110 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 19 employees supports ₹5.77 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.77 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 34.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 13.1% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE22.3%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +29% while net margin moved +18% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+29%

Margin effect+18%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

• P/E of 31.0x already prices in growth
✗ P/E is 100% above its own historical median of 15.5x — expensive by its own standards

Quality vs. Valuation

Company Quality

55/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

31.0x

3Y Median

15.5x

40 monthly readings · mean 17.1x · range 13.4x–39.4x

Sector Median

40.4x

median of 4 sector peers

⚠️Current valuation is approximately 100% above its 3y median of 15.5x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 23% below the peer median of 40.4x.

vs. its own history

Expensive

15.5x median over 40 months · +100%

vs. sector peers

Cheap

40.4x median of 4 peers · -23%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.8x

PEG

2.09

What's Good / What's Bad

🟢 What's Going Well4

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 26.9% to 34.1%.
High return on capital employed
ROCE of 34.1% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 57% over 3 years, from ₹9 Cr to ₹15 Cr.
🔴High leverageFinancial
Debt/Equity of 2.40x — earnings must service borrowings before shareholders see anything.
🟡Inventory building faster than salesFinancial
Inventory up 62% against revenue up 29% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 34.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 23% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 6.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 100% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 0%✓ 2.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 2.2x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 7% a year✓ 8.8% CAGR
Latest reported year was 36.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹15 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.0x

Fair

Fairly valued against the generic band

P/B Ratio

2.53x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.49

Profitable

Profitable on a per-share basis

ROE

13.1%

Moderate

Moderate capital efficiency

ROCE

34.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.40x

High

High leverage

Revenue Growth (YoY)

36.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

2.4%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.6%

Weak

Thin margins leave little room for error

Net Margin

0.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.12

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.54

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

48.3 / 56.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

4.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹85 Cr	₹84 Cr	₹101 Cr	₹110 Cr	+8.8%
EBITDA	₹1 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+26.6%
EBITDA Margin	1.3%	1.7%	1.9%	2.0%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+14.8%
EPS	₹1.58	₹1.93	₹1.93	₹2.39	+14.8%
ROE	13.6%	13.6%	14.7%	13.1%	—
ROCE	26.9%	30.5%	34.9%	34.1%	—
Total Debt	₹9 Cr	₹13 Cr	₹15 Cr	₹15 Cr	+16.3%
Free Cash Flow	-₹5 Cr	-₹4 Cr	-₹2 Cr	₹0 Cr	—

🟢 Revenue has grown at 8.8% a year over 3 years.

🟢 EBITDA has grown at 26.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 2.0% over 3 years.

🟢 PAT (Net Profit) has grown at 14.8% a year over 3 years.

🟢 EPS has grown at 14.8% a year over 3 years.

🟡 ROE has held roughly flat at 13.1% over 3 years.

🟢 ROCE has risen from 26.9% to 34.1% over 3 years (+7.2 pts).

🔴 Total Debt has grown at 16.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹5 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹50 Cr

Total Liabilities

₹44 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

95.4%

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 mixed1 negative4 general

AMS Polymers shareholders unanimously approve ₹20 crore borrowing limit

scanx.trade, 03 Oct

AMS Polymers Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

AMS Polymers schedules Sep 30 AGM, approves ₹20 crore borrowing

scanx.trade, 30 Sept

AMS Polymers Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

EPL consolidated net profit declines 1.40% in the June 2026 quarter

Business Standard, 11 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

AMS Polymers closes trading window from Oct 1 until Q2FY27 results

scanx.trade, 24 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Risk

WeakFinancial Health · Profitability · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑