Gujarat Petrosynthese Limited

Basic Materials — Specialty Chemicals · BSE

₹50.99+₹0.83 (+1.65%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Gujarat Petrosynthese Limited engages in the manufacture and sale of plastic polymers and blends in India. It offers synolac modified ABS, PC, PBT, PP, SAN, POM, and Nylon 6 & 66 polymers; polymer blends and alloys; specialty grade compounds; and engineering plastics.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees26

Annual revenue₹23 Cr

How does it make money?

Turns over ₹23 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 26 employees supports ₹86.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹86.8 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?Little sign of one

Returns on capital of 5.5% 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 ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +15% while net margin moved +47% 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+15%

Margin effect+47%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.37 — 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

58/ 100

Average

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

Valuation

84/ 100

Cheap

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

11.6x

3Y Median

24.1x

40 monthly readings · mean 23.5x · range 12.9x–36.5x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 52% below its 3y median of 24.1x. 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 71% below the peer median of 40.4x.

vs. its own history

Cheap

24.1x median over 40 months · -52%

vs. sector peers

Cheap

40.4x median of 4 peers · -71%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

13.6x

PEG

0.60

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 6.4% to 9.1% over 3 years.
Very low debt
Debt/Equity of 0.24x leaves the balance sheet with plenty of headroom.
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

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 280% over 3 years, from ₹0 Cr to ₹0 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.4% to 9.1%. 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 52% 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 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?

Growth barely outpaces inflation
Revenue compounding at 4.9% 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.
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 7%✓ 9.1%
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.
3Revenue growth stays above 4% a year✓ 4.9% CAGR
Latest reported year was 45.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
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 8%✗ 5.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

6 good · 2 neutral · 3 weak

Market Cap

₹30 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.6x

Cheap

Cheap against the generic band

P/B Ratio

0.58x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.41

Profitable

Profitable on a per-share basis

ROE

4.5%

Weak

Weak capital efficiency

ROCE

5.5%

Weak

Low return on total capital employed

Debt/Equity

0.24x

Low

Conservative leverage

Revenue Growth (YoY)

45.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

46.5%

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 burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.0%

Weak

Thin margins leave little room for error

Net Margin

10.6%

Good

Strong bottom-line conversion

Current Ratio

8.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.37

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

52.4 / 53.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹14 Cr	₹17 Cr	₹23 Cr	+4.9%
EBITDA	₹1 Cr	₹0 Cr	₹1 Cr	₹2 Cr	+18.2%
EBITDA Margin	6.4%	1.0%	6.0%	9.1%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹1 Cr	₹2 Cr	+19.4%
EPS	₹2.32	₹2.78	₹2.45	₹3.95	+19.4%
ROE	3.0%	3.4%	2.9%	4.5%	—
ROCE	4.2%	2.7%	4.4%	5.5%	—
Total Debt	₹0 Cr	₹0 Cr	—	₹0 Cr	+56.1%
Free Cash Flow	-₹3 Cr	-₹5 Cr	-₹3 Cr	-₹2 Cr	—

🟢 Revenue has grown at 4.9% a year over 3 years.

🟢 EBITDA has grown at 18.2% a year over 3 years.

🟢 EBITDA Margin has risen from 6.4% to 9.1% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 19.4% a year over 3 years.

🟢 EPS has grown at 19.4% a year over 3 years.

🟢 ROE has risen from 3.0% to 4.5% over 3 years (+1.5 pts).

🟢 ROCE has risen from 4.2% to 5.5% over 3 years (+1.3 pts).

🔴 Total Debt has grown at 56.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹57 Cr

Total Liabilities

₹5 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

7.3%

Insider Holding

54.9%

Corporate Actions

Ex-Dividend Date

12 Aug 2003

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 positive2 mixed3 general

Gujarat Petrosynthese Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Gujarat Petrosynthese shareholders approve leadership reappointments with 99.99% votes

scanx.trade, 07 Oct

Gujarat Petrosynthese standalone net profit rises 45.76% 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.

Q4 Results Today: Tata Motors, Bharti Airtel, PFC, Oil India Among 100 Companies To Declare Earnings

NDTV Profit, 13 MayResults

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

Gujarat Petrosynthese Limited (506858) Company Information

Simply Wall Street, 14 Nov

Q4 results 2026: Bharti Airtel to Tata Motors among companies to declare Q4 results today; check full list here

Livemint, 13 MayResults

🟡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.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

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 — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑