Bai-Kakaji Polymers Limited

Consumer Cyclical — Packaging & Containers · BSE

₹285.00−₹2.10 (−0.73%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Bai-Kakaji Polymers Limited manufactures and supplies packaging solutions for the beverage and food industry in India.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees409

Annual revenue₹365 Cr

How does it make money?

Turns over ₹365 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 409 employees supports ₹89.2 lakh of revenue a year, the signature of a people-led business.

EBITDA margin16.0%

Net margin7.4%

Revenue / employee₹89.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

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

ROCE has stayed above 15% in every year available and stands at 23.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.5% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE23.4%

ROE23.5%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +34% while net margin moved +382% 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+34%

Margin effect+382%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

77/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

18.2x

1.0Y Median

23.7x

12 monthly readings · mean 26.7x · range 20.7x–34.8x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 23% below its 1.0y median of 23.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 74% below the peer median of 69.2x.

vs. its own history

Cheap

23.7x median over 12 months · -23%

vs. sector peers

Cheap

69.2x median of 4 peers · -74%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

18.2x

P/B

3.47x

EV/EBITDA

11.6x

PEG

0.21

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 6.0% to 16.0% over 3 years.
High return on capital employed
ROCE of 23.4% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 18.2x the stock trades 23% below its own median of 23.7x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Debt is rising
Total debt is up 44% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 34.9% to 23.4% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 82% against revenue growth of 34% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 175% against revenue growth of 34% — stock may not be moving.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Inventory building faster than salesFinancial
Inventory up 175% against revenue up 34% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 44% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹44 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 82% against revenue up 34% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.4% 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.
Margin expansion has further to run
EBITDA margin has risen from 6.0% to 16.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 23% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 74% 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?

Sales are being booked faster than collected
Receivables are up 82% against revenue up 34%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.

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

1Revenue growth stays above 8% a year✓ 10.3% CAGR
Latest reported year was 9.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹44 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 23.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 5 neutral · 2 weak

Market Cap

₹610 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.2x

Fair

Fairly valued against the generic band

P/B Ratio

3.47x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹15.69

Profitable

Profitable on a per-share basis

ROE

23.5%

Strong

Strong capital efficiency

ROCE

23.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.37x

Low

Conservative leverage

Revenue Growth (YoY)

9.2%

Modest

Modest growth

Profit Growth (YoY)

-22.9%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹66 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹285

ROA

9.9%

Good

Assets are working hard

Operating Margin

8.3%

Average

Average margins

Net Margin

7.4%

Average

Average bottom-line conversion

Current Ratio

1.27

Comfortable

Healthy short-term liquidity

52W Range Position

76%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

294.3 / 280.0

Bullish alignment (short > long)

RSI (14)

40.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹272 Cr	₹294 Cr	₹325 Cr	₹365 Cr	+10.3%
EBITDA	₹16 Cr	₹22 Cr	₹40 Cr	₹58 Cr	+52.4%
EBITDA Margin	6.0%	7.6%	12.2%	16.0%	—
PAT (Net Profit)	₹4 Cr	₹9 Cr	₹18 Cr	₹27 Cr	+86.2%
EPS	₹1.95	₹4.38	₹8.49	—	—
ROE	16.1%	26.5%	33.9%	15.4%	—
ROCE	34.9%	33.8%	41.1%	23.4%	—
Total Debt	₹46 Cr	₹41 Cr	₹109 Cr	₹66 Cr	+13.0%
Free Cash Flow	₹6 Cr	₹0 Cr	-₹76 Cr	-₹44 Cr	—

🟢 Revenue has grown at 10.3% a year over 3 years.

🟢 EBITDA has grown at 52.4% a year over 3 years.

🟢 EBITDA Margin has risen from 6.0% to 16.0% over 3 years (+9.9 pts).

🟢 PAT (Net Profit) has grown at 86.2% a year over 3 years.

🟡 ROE has held roughly flat at 15.4% over 3 years.

🔴 ROCE has fallen from 34.9% to 23.4% over 3 years (-11.5 pts).

🔴 Total Debt has grown at 13.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹6 Cr to -₹44 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹281 Cr

Total Liabilities

₹105 Cr

Total Debt

₹66 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹28 Cr

Capex

-₹72 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.5%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

BAI-KAKAJI POLYMERS LIMITED Share Price Gain and Valuation

Univest, 01 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Bai-Kakaji Polymers hits upper circuit as Abakkus Fund buys 2.8% stake in bulk deal

CNBC TV18, 30 Jul

Bai-Kakaji Polymers dispatches 13th AGM notice, e-voting starts Sept 9

scanx.trade, 19 Aug

Bai Kakaji Polymers shares to list today. Here's what GMP suggests

The Economic Times, 31 Dec

Bai-Kakaji Polymers Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Compare with

Equitymaster, 30 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.1/20

🟢Financial HealthStrong13.2/20

🟢GrowthStrong16.1/20

🟢ProfitabilityStrong11.5/15

🟢ValuationAttractive10.7/15

🔴RiskHigh2.5/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 8% a year10.3% CAGR
✓EBITDA margin holds above 14%16.0%
✗Free cash flow remains positive-₹44 Cr
✓Debt / EBITDA stays below 2x1.1x
✓ROCE stays above 20%23.4%