Jolly Plastic Industries Limited

Basic Materials — Specialty Chemicals · BSE

₹56.98+₹2.71 (+4.99%)

DalalBaazaar Score

29 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, 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, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Jolly Plastic Industries Limited in the manufacture, processing, trading, importing, exporting, and dealing in plastic, polymer, PVC, and allied products in India.

IndustrySpecialty Chemicals

SectorBasic Materials

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹-102 left at the operating level before interest, tax and depreciation.

EBITDA margin-101.9%

Net margin4.7%

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.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

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?Little sign of one

Returns on capital of -3.3% 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.

ROCE-3.3%

ROE0.2%

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 +16% while net margin moved -29% 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+16%

Margin effect-29%

DalalBaazaar Score

29/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROE of 0.2% is weak

Quality vs. Valuation

Company Quality

32/ 100

Weak

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

Valuation

21/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

5.53x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 32.2% to -101.9% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 0.3% to -3.3% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 134.1 points, from 32.2% to -101.9%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 32.2% to -101.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 5.0% 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.
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

1EBITDA margin holds above -104%✓ -101.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 5.0% CAGR
Latest reported year was 32603.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4ROCE stays above 8%✗ -3.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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
✓ 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

1 good · 3 neutral · 7 weak

Market Cap

₹139 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

5.53x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-0.45

Loss-making

Negative earnings per share — the business is losing money

ROE

0.2%

Weak

Weak capital efficiency

ROCE

-3.3%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

32603.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-39.8%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹56.98

Operating Margin

-31.7%

Weak

Thin margins leave little room for error

Net Margin

-31.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

16.59

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.24

Market-like

Moves roughly in line with the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

48.4 / 45.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

73.4

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+5.0%
EBITDA	₹0 Cr	-₹0 Cr	₹0 Cr	-₹0 Cr	—
EBITDA Margin	32.2%	-103.6%	13.9%	-101.9%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-6.3%
EPS	₹0	₹0.01	₹0.03	₹0.02	+103.0%
ROE	0.2%	0.1%	0.3%	0.2%	—
ROCE	0.3%	-2.7%	0.3%	-3.3%	—
Free Cash Flow	-₹0 Cr	₹0 Cr	-₹0 Cr	-₹0 Cr	—

🟢 Revenue has grown at 5.0% a year over 3 years.

🔴 EBITDA has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EBITDA Margin has fallen from 32.2% to -101.9% over 3 years (-134.1 pts).

🔴 PAT (Net Profit) has shrunk at 6.3% a year over 3 years.

🟢 EPS has grown at 103.0% a year over 3 years.

🟡 ROE has held roughly flat at 0.2% over 3 years.

🔴 ROCE has fallen from 0.3% to -3.3% over 3 years (-3.6 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

86.7%

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 positive5 general

Sahaj Digital calls EGM for Nov 12 to confirm director appointment

scanx.trade, 16 Oct

Compare JOLLY PLAST. with

Equitymaster, 15 Oct

Jolly Plastic Industries (BSE: 507968): Wholesale Distribution Classification Explained

Kalkine India, 16 Sept

Compare JOLLY PLAST. with

Equitymaster, 15 Oct

Jolly Plastic Industries shareholders unanimously approve rebranding to Sahaj Digital

scanx.trade, 29 Jul

IRB Infrastructure Developers consolidated net profit rises 37.98% in the March 2026 quarter

Business Standard, 20 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🟡Financial HealthAdequate10.8/20

🔴GrowthWeak5.7/20

🔴ProfitabilityWeak2.6/15

🔴ValuationDemanding2.6/15

🔴RiskHigh2.7/10

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.

This thesis breaks if

✓EBITDA margin holds above -104%-101.9%
✗Free cash flow remains positive-₹0 Cr
✓Revenue growth stays above 4% a year5.0% CAGR
✗ROCE stays above 8%-3.3%