G M Polyplast Limited

Basic Materials — Specialty Chemicals · BSE

₹68.00−₹1.68 (−2.41%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

G M Polyplast Limited manufactures and supplies plastic granules and sheets in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees264

Annual revenue₹103 Cr

How does it make money?

Turns over ₹103 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 264 employees supports ₹39.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹39.0 lakh

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 23.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.1% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +25% while net margin moved +34% 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+25%

Margin effect+34%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.15 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

86/ 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

11.1x

3Y Median

17.1x

40 monthly readings · mean 26.4x · range 10.3x–53.3x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 3y median of 17.1x. 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 73% below the peer median of 40.4x.

vs. its own history

Cheap

17.1x median over 40 months · -35%

vs. sector peers

Cheap

40.4x median of 4 peers · -73%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.8x

PEG

0.59

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 9.7% to 12.4% over 3 years.
Debt is being paid down
Total debt is down 14% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 23.3% 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 Attention1

Return on capital is falling
ROCE has declined from 25.7% to 23.3% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 3.54x — earnings must service borrowings before shareholders see anything.
🟡Receivables growing faster than salesFinancial
Receivables up 65% against revenue up 25% — 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 23.3% 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 9.7% to 12.4%. 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 35% 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 73% 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?

Leverage amplifies any setback
Debt/Equity of 3.54x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 65% against revenue up 25%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 7.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 10%✓ 12.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 7.8% CAGR
Latest reported year was 9.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 23.3%
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

6 good · 4 neutral · 1 weak

Market Cap

₹92 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.1x

Cheap

Cheap against the generic band

P/B Ratio

1.93x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.14

Profitable

Profitable on a per-share basis

ROE

19.1%

Strong

Strong capital efficiency

ROCE

23.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.54x

High

High leverage

Revenue Growth (YoY)

9.6%

Modest

Modest growth

Profit Growth (YoY)

24.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

13.0%

Good

Assets are working hard

Operating Margin

10.6%

Average

Average margins

Net Margin

8.0%

Average

Average bottom-line conversion

Current Ratio

4.47

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.15

Defensive

Steadier than the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

65.0 / 66.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

60.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹82 Cr	₹92 Cr	₹96 Cr	₹103 Cr	+7.8%
EBITDA	₹8 Cr	₹11 Cr	₹12 Cr	₹13 Cr	+17.3%
EBITDA Margin	9.7%	12.5%	12.2%	12.4%	—
PAT (Net Profit)	₹5 Cr	₹7 Cr	₹7 Cr	₹8 Cr	+18.9%
EPS	₹3.66	₹5.27	₹5.53	—	—
ROE	19.4%	22.3%	19.0%	17.4%	—
ROCE	25.7%	30.9%	25.9%	23.3%	—
Total Debt	₹2 Cr	₹1 Cr	₹1 Cr	₹2 Cr	-5.1%
Free Cash Flow	-₹1 Cr	₹3 Cr	-₹1 Cr	₹5 Cr	—

🟢 Revenue has grown at 7.8% a year over 3 years.

🟢 EBITDA has grown at 17.3% a year over 3 years.

🟢 EBITDA Margin has risen from 9.7% to 12.4% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 18.9% a year over 3 years.

🔴 ROE has fallen from 19.4% to 17.4% over 3 years (-2.0 pts).

🔴 ROCE has fallen from 25.7% to 23.3% over 3 years (-2.4 pts).

🟢 Total Debt has shrunk at 5.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹59 Cr

Total Liabilities

₹12 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.4%

Corporate Actions

Ex-Dividend Date

20 Nov 2023

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 mixed5 general

GM Polyplast Ltd. (GMPL) Share Price Rises 10.77% Today

Univest, 29 JulPrice 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.

GM Polyplast Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 03 Sept

G M Polyplast AGM on September 7 seeks approval for ₹65 crore related-party deals

scanx.trade, 14 Aug

GM Polyplast AGM approves loans, investments in Regranix

scanx.trade, 07 Sept

SPEB Stock Price and Chart — NSE:SPEB

TradingView, 08 Dec

G M Polyplast Incorporates Wholly Owned Subsidiary Regranix Private Limited

scanx.trade, 13 Mar

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

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.

All 5 tripwires holding · see Key things to watch ↑