Injecto Polymers Limited

Basic Materials — Chemicals · BSE

₹97.65₹0.00 (0.00%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, 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. Debt is 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 Injecto Polymers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Injecto Polymers Limited engages in the production, distribution, and trading of polymer packaging goods. The company operates in 2 segments, manufacturing of packaging products and trading of plastic granules and polyvinyl chloride resins.

IndustryChemicals

SectorBasic Materials

Annual revenue₹376 Cr

How does it make money?

Turns over ₹376 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation.

EBITDA margin9.6%

Net margin4.3%

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.

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Some evidence

ROCE of 44.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE44.6%

ROE28.9%

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 +290% while net margin moved +99% 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+290%

Margin effect+99%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

79/ 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

12.7x

Sector Median

33.8x

median of 3 sector peers

🟢Against its sector it trades 62% below the peer median of 33.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

33.8x median of 3 peers · -62%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.7x

P/B

2.34x

EV/EBITDA

10.2x

PEG

0.13

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 6.9% to 9.6% over 3 years.
Return on equity is rising
ROE has improved from 11.7% to 25.3%.
Return on capital is rising
ROCE has improved from 10.2% to 44.6%.
High return on capital employed
ROCE of 44.6% 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 160% 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

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 160% over 3 years, from ₹64 Cr to ₹165 Cr.
🔴High leverageFinancial
Debt/Equity of 2.61x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 44.6% 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 6.9% to 9.6%. 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 62% 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?

The debt load needs earnings to hold up
Debt is 4.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.
Several serious flags at once
4 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

1Revenue growth stays above 43% a year✓ 57.4% CAGR
Latest reported year was 43.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹53 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 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 · 3 neutral · 2 weak

Market Cap

₹203 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.7x

Cheap

Cheap against the generic band

P/B Ratio

2.34x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.7

Profitable

Profitable on a per-share basis

ROE

28.9%

Strong

Strong capital efficiency

ROCE

44.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.61x

High

High leverage

Revenue Growth (YoY)

43.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

97.5%

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

-₹66 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹97.65

ROA

10.1%

Good

Assets are working hard

Operating Margin

9.5%

Average

Average margins

Net Margin

4.3%

Average

Average bottom-line conversion

Current Ratio

1.16

Adequate

Adequate, but no real cushion

52W Range Position

82%

Mid-range

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹96 Cr	₹109 Cr	₹261 Cr	₹376 Cr	+57.4%
EBITDA	₹7 Cr	₹12 Cr	₹21 Cr	₹36 Cr	+75.8%
EBITDA Margin	6.9%	11.2%	7.9%	9.6%	—
PAT (Net Profit)	₹2 Cr	₹4 Cr	₹8 Cr	₹16 Cr	+97.9%
EPS	₹0.99	₹2.14	₹3.9	—	—
ROE	11.7%	20.9%	17.1%	25.3%	—
ROCE	10.2%	18.9%	28.4%	44.6%	—
Total Debt	₹64 Cr	₹83 Cr	₹101 Cr	₹165 Cr	+37.5%
Free Cash Flow	-₹5 Cr	-₹16 Cr	-₹27 Cr	-₹53 Cr	—

🟢 Revenue has grown at 57.4% a year over 3 years.

🟢 EBITDA has grown at 75.8% a year over 3 years.

🟢 EBITDA Margin has risen from 6.9% to 9.6% over 3 years (+2.7 pts).

🟢 PAT (Net Profit) has grown at 97.9% a year over 3 years.

🟢 ROE has risen from 11.7% to 25.3% over 3 years (+13.5 pts).

🟢 ROCE has risen from 10.2% to 44.6% over 3 years (+34.4 pts).

🔴 Total Debt has grown at 37.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹271 Cr

Total Liabilities

₹208 Cr

Total Debt

₹165 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹49 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.2%

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

2 mixed4 general

Injecto Polymers Q1 Results 2026 - Find Injecto Polymers Q1 Earnings Result | Injecto Polymers Q1 results

Livemint, 15 OctResults

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

Injecto Polymers Ltd Share Price

Business Today, 15 Oct

Compare Supreme Industries with

Equitymaster, 16 Oct

Injecto Polymers Q2 Results 2026 - Find Injecto Polymers Q2 Earnings Result | Injecto Polymers Q2 results

Livemint, 15 OctResults

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

Injecto Polymers Limited (544930) Company Information

Simply Wall Street, 19 Sept

Compare with ARCEE INDUST

Equitymaster, 17 Oct

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate12.4/20

🔴Financial HealthStretched7.7/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong10.6/15

🟢ValuationAttractive11/15

🔴RiskHigh2.5/10

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. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 43% a year57.4% CAGR
✓EBITDA margin holds above 8%9.6%
✗Debt / EBITDA falls below 3x4.6x
✗Free cash flow remains positive-₹53 Cr
✓Interest cover stays above 3x3.3x