Dutron Polymers Limited

Industrials — Building Products & Equipment · BSE

₹109.00₹0.00 (0.00%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, 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, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Dutron Polymers Limited engages in the manufacturing of plastic pipes in India and internationally.

IndustryBuilding Products & Equipment

SectorIndustrials

Annual revenue₹92 Cr

How does it make money?

Turns over ₹92 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 11.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

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 -30% while net margin moved +50% 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-30%

Margin effect+50%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 11.4% a year
✗ Profit CAGR of only 1.6%
✗ Profit fell 18.2% in the latest year

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

60/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

25.8x

3Y Median

31.8x

40 monthly readings · mean 31.6x · range 21.3x–43.7x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 19% below its 3y median of 31.8x. 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 71% below the peer median of 88.8x.

vs. its own history

Fair

31.8x median over 40 months · -19%

vs. sector peers

Cheap

88.8x median of 3 peers · -71%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.1x

PEG

16.65

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 63% over 3 years.
Very low debt
Debt/Equity of 0.12x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 13.4% to 11.3% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Inventory building faster than salesFinancial
Inventory up 39% against revenue up -30% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹2 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 63% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 71% 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

1EBITDA margin holds above 3%✓ 5.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 11.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 31.8x✓ 25.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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

2 good · 7 neutral · 2 weak

Market Cap

₹65 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.8x

Fair

Fairly valued against the generic band

P/B Ratio

2.12x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.22

Profitable

Profitable on a per-share basis

ROE

8.7%

Moderate

Moderate capital efficiency

ROCE

11.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

1.5%

Modest

Modest growth

Profit Growth (YoY)

-18.2%

Falling

Profits are shrinking

Dividend Yield

1.38%

Modest

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

Free Cash Flow

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

3.2%

Weak

Thin margins leave little room for error

Net Margin

2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

5.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.31

Defensive

Steadier than the market

52W Range Position

47%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

103.9 / 103.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

59.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹132 Cr	₹119 Cr	₹104 Cr	₹92 Cr	-11.4%
EBITDA	₹6 Cr	₹6 Cr	₹5 Cr	₹5 Cr	-6.1%
EBITDA Margin	4.5%	4.6%	5.0%	5.4%	—
PAT (Net Profit)	₹3 Cr	₹2 Cr	₹3 Cr	₹3 Cr	+1.6%
EPS	₹4.3	₹4.08	₹4.54	₹4.5	+1.5%
ROE	10.4%	9.3%	9.3%	8.7%	—
ROCE	13.4%	12.9%	11.6%	11.3%	—
Total Debt	₹10 Cr	₹6 Cr	₹5 Cr	₹4 Cr	-28.0%
Free Cash Flow	₹7 Cr	₹4 Cr	₹4 Cr	-₹2 Cr	—

🔴 Revenue has shrunk at 11.4% a year over 3 years.

🔴 EBITDA has shrunk at 6.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 5.4% over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.6% a year).

🟡 EPS has been broadly flat over 3 years (1.5% a year).

🔴 ROE has fallen from 10.4% to 8.7% over 3 years (-1.6 pts).

🔴 ROCE has fallen from 13.4% to 11.3% over 3 years (-2.1 pts).

🟢 Total Debt has shrunk at 28.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹7 Cr to -₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹42 Cr

Total Liabilities

₹11 Cr

Cash & Equivalents

-₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.3%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

11 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

3 positive1 mixed2 general

Dutron Polymers files AGM voting results, scrutinizer report for 45th meeting

scanx.trade, 18 SeptResults

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

Dutron Polymers Limited Opens Special Window for Physical Share Transfer and Dematerialization

scanx.trade, 01 Apr

Lakshmi Finance & Industrial Corporation standalone net profit rises 8.02% in the June 2026 quarter

Business Standard, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Dividend stocks alert! Last day to qualify for dividend of these stocks - Check full list, amount, record date

Livemint, 10 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Waaree Energies, Venkys, Amrutanjan, Uttam Sugar, Rupa Dividends: Last Day To Buy Shares To Qualify

NDTV Profit, 10 Sept

Dividend alert! Last day to buy IREDA, Kalyan Jewellers among more than 100 stocks for dividends. Do you o

The Economic Times, 10 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Valuation · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑