Gulshan Polyols Limited

Basic Materials — Chemicals · NSE

₹170.80+₹7.66 (+4.70%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Gulshan Polyols Limited engages in the mineral and grain processing, and ethanol distillery businesses in India.

IndustryChemicals

SectorBasic Materials

Employees577

Annual revenue₹2,261 Cr

How does it make money?

Turns over ₹2,261 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 577 employees supports ₹3.92 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.92 Cr

Who are its competitors?

The closest listed comparisons in its industry are 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?Some evidence

ROCE of 21.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.4%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +95% while net margin moved +22% 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+95%

Margin effect+22%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.45 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

88/ 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

7.2x

3Y Median

37.2x

40 monthly readings · mean 41.5x · range 9.7x–82.1x

Sector Median

33.8x

median of 3 sector peers

🟢Current valuation is approximately 81% below its 3y median of 37.2x. 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 79% below the peer median of 33.8x.

vs. its own history

Cheap

37.2x median over 40 months · -81%

vs. sector peers

Cheap

33.8x median of 3 peers · -79%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.7x

PEG

0.22

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 8.0% to 10.4% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 7.9% to 14.9%.
Return on capital is rising
ROCE has improved from 9.2% to 21.3%.
High return on capital employed
ROCE of 21.3% 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 Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 26% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.3% 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 8.0% to 10.4%. 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 81% 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 79% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹181 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

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 19% a year✓ 24.8% CAGR
Latest reported year was 7.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹181 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 21.3%
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

7 good · 4 neutral · 0 weak

Market Cap

₹1,062 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.2x

Cheap

Cheap against the generic band

P/B Ratio

1.48x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹23.69

Profitable

Profitable on a per-share basis

ROE

14.9%

Moderate

Moderate capital efficiency

ROCE

21.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.43x

Low

Conservative leverage

Revenue Growth (YoY)

7.9%

Modest

Modest growth

Profit Growth (YoY)

306.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.88%

Modest

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

Free Cash Flow

₹181 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

11.6%

Average

Average margins

Net Margin

6.3%

Average

Average bottom-line conversion

Current Ratio

1.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

46%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

166.1 / 179.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,162 Cr	₹1,358 Cr	₹1,998 Cr	₹2,261 Cr	+24.8%
EBITDA	₹92 Cr	₹59 Cr	₹99 Cr	₹236 Cr	+36.6%
EBITDA Margin	8.0%	4.4%	4.9%	10.4%	—
PAT (Net Profit)	₹45 Cr	₹18 Cr	₹25 Cr	₹107 Cr	+33.4%
EPS	₹7.24	₹2.85	₹3.97	₹17.18	+33.4%
ROE	7.9%	3.0%	4.0%	14.9%	—
ROCE	9.2%	4.5%	7.6%	21.3%	—
Total Debt	₹253 Cr	₹354 Cr	₹397 Cr	₹318 Cr	+7.9%
Free Cash Flow	-₹239 Cr	-₹113 Cr	-₹14 Cr	₹181 Cr	—

🟢 Revenue has grown at 24.8% a year over 3 years.

🟢 EBITDA has grown at 36.6% a year over 3 years.

🟢 EBITDA Margin has risen from 8.0% to 10.4% over 3 years (+2.5 pts).

🟢 PAT (Net Profit) has grown at 33.4% a year over 3 years.

🟢 EPS has grown at 33.4% a year over 3 years.

🟢 ROE has risen from 7.9% to 14.9% over 3 years (+7.1 pts).

🟢 ROCE has risen from 9.2% to 21.3% over 3 years (+12.1 pts).

🔴 Total Debt has grown at 7.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹239 Cr to ₹181 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,304 Cr

Total Liabilities

₹586 Cr

Cash & Equivalents

₹28 Cr

Operating Cash Flow

₹207 Cr

Capex

-₹26 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.6%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

28 Aug 2026

Peer Comparison

Company	P/E	ROE
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

4 positive1 mixed1 general

Gulshan Polyols Ltd Dividend History, Yield & Record Date

INDmoney, 09 OctCapital return

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

Is It Smart To Buy Gulshan Polyols Limited (NSE:GULPOLY) Before It Goes Ex-Dividend?

Simply Wall Street, 24 AugCapital return

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

Gulshan Polyols Q1FY27 net profit surges 305%, eyes specialty chemicals

scanx.trade, 06 AugResults

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

Gulshan Polyols Share Price Forecast: 3 Year Outlook to 2030

Univest, 17 Jul

GULPOLY Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Gulshan Polyols Q4 Profit Surges 435% to ₹37.5 Crore on Strong Demand

Sahi, 22 MayResults

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

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 ↑

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.

All 5 tripwires holding · see Key things to watch ↑