Dhabriya Polywood Limited

Industrials — Building Products & Equipment · NSE

₹506.95+₹20.55 (+4.22%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 Dhabriya Polywood Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Dhabriya Polywood Limited engages in the manufacture and supply of poly vinyl chloride (PVC) and unplasticized poly vinyl chloride (uPVC) products in India. The company operates in two segments, Plastic Product and Modular Furniture.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees611

Annual revenue₹264 Cr

How does it make money?

Turns over ₹264 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 611 employees supports ₹43.3 lakh of revenue a year, the signature of a people-led business.

EBITDA margin20.9%

Net margin11.4%

Revenue / employee₹43.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 28.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE28.6%

ROE23.3%

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +55% while net margin moved +130% 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+55%

Margin effect+130%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.51 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

77/ 100

Good

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

Valuation

74/ 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

16.9x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 81% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -81%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

16.9x

P/B

4.23x

EV/EBITDA

11.2x

PEG

0.32

Dividend Yield

0.14%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 10.7% to 20.9% over 3 years.
Return on equity is rising
ROE has improved from 12.3% to 23.3%.
Return on capital is rising
ROCE has improved from 14.9% to 28.6%.
High return on capital employed
ROCE of 28.6% 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 Attention2

Debt is rising
Total debt is up 34% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Debt is increasingFinancial
Total debt is up 34% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹19 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.6% 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 10.7% to 20.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 81% 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?

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 12% a year✓ 15.6% CAGR
Latest reported year was 10.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 19%✓ 20.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹19 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 26%✓ 28.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 10 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

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹549 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.9x

Fair

Fairly valued against the generic band

P/B Ratio

4.23x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹29.98

Profitable

Profitable on a per-share basis

ROE

23.3%

Strong

Strong capital efficiency

ROCE

28.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.59x

Low

Conservative leverage

Revenue Growth (YoY)

10.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

35.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.14%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹19 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹506.95

Operating Margin

19.3%

Good

Healthy core-business profitability

Net Margin

12.0%

Good

Strong bottom-line conversion

Current Ratio

1.82

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

RSI (14)

56.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹171 Cr	₹212 Cr	₹235 Cr	₹264 Cr	+15.6%
EBITDA	₹18 Cr	₹31 Cr	₹38 Cr	₹55 Cr	+44.8%
EBITDA Margin	10.7%	14.7%	16.0%	20.9%	—
PAT (Net Profit)	₹8 Cr	₹14 Cr	₹18 Cr	₹30 Cr	+52.6%
EPS	₹7.84	₹13.01	₹16.65	₹27.85	+52.6%
ROE	12.3%	17.1%	18.0%	23.3%	—
ROCE	14.9%	22.7%	22.8%	28.6%	—
Total Debt	₹57 Cr	₹53 Cr	₹53 Cr	₹76 Cr	+10.3%
Free Cash Flow	₹1 Cr	₹11 Cr	₹5 Cr	-₹19 Cr	—

🟢 Revenue has grown at 15.6% a year over 3 years.

🟢 EBITDA has grown at 44.8% a year over 3 years.

🟢 EBITDA Margin has risen from 10.7% to 20.9% over 3 years (+10.3 pts).

🟢 PAT (Net Profit) has grown at 52.6% a year over 3 years.

🟢 EPS has grown at 52.6% a year over 3 years.

🟢 ROE has risen from 12.3% to 23.3% over 3 years (+10.9 pts).

🟢 ROCE has risen from 14.9% to 28.6% over 3 years (+13.7 pts).

🔴 Total Debt has grown at 10.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹19 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹226 Cr

Total Liabilities

₹96 Cr

Total Debt

₹76 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹27 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.8%

Corporate Actions

Dividend Rate

₹0.7

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 mixed4 general

Dhabriya Polywood Upper Circuit Today: Price, Data and Peers

Univest, 16 Oct

DHABRIYA Stock Price and Chart — NSE:DHABRIYA

TradingView, 17 Aug

Dhabriya Polywood Gets ₹4.75 Crore Order; Shares Rise 1.52%

HDFC Sky, 01 OctPrice 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.

Dhabriya Polywood wins Rs 4.78 crore order from Godrej Properties

scanx.trade, 14 Aug

Dhabriya Polywood Limited Company Information

Simply Wall Street, 22 Aug

Dhabriya Polywood share price jumps 10% after landing ₹34.81 Cr work order

Alice Blue, 06 AprPrice 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.

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong16.7/20

🟢Financial HealthStrong13.3/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong12.9/15

🟡ValuationFair9.3/15

🔴RiskHigh4.4/10

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 12% a year15.6% CAGR
✓EBITDA margin holds above 19%20.9%
✗Free cash flow remains positive-₹19 Cr
✓Debt / EBITDA stays below 2x1.4x
✓ROCE stays above 26%28.6%