Pankaj Polymers Limited

Consumer Cyclical — Packaging & Containers · BSE

₹141.80−₹1.15 (−0.80%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by short-term liabilities exceed short-term assets, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Pankaj Polymers Limited engages in the manufacture and sale of polymer products in India. It offers P.P. woven sacks; P.P. disposable wares; and injection and blow moulded products of PP/PBT/PET.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees2

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹169 reaches shareholders as profit, with ₹-13 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹64.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹64.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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 18.9% 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 ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -27% while net margin moved +6185% 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-27%

Margin effect+6185%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.71 — 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

78/ 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

27.9x

3Y Median

130.9x

40 monthly readings · mean 240.8x · range 30.4x–889.4x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 79% below its 3y median of 130.9x. 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 60% below the peer median of 69.2x.

vs. its own history

Cheap

130.9x median over 40 months · -79%

vs. sector peers

Cheap

69.2x median of 4 peers · -60%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

0.11

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 0.4% to 16.8%.
Return on capital is rising
ROCE has improved from 2.9% to 18.9%.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 2 high · 2 watch

🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 41.1 points, from 28.5% to -12.7%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.93 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.9% 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.
Priced below its own history
The stock trades 79% 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 60% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 28.5% to -12.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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
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 -15%✓ -12.7%
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.
3ROCE stays above 16%✓ 18.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 130.9x✓ 27.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹79 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.9x

Fair

Fairly valued against the generic band

P/B Ratio

6.27x

Rich

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

EPS (TTM)

₹5.08

Profitable

Profitable on a per-share basis

ROE

16.8%

Strong

Strong capital efficiency

ROCE

18.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

109.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1797.4%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-26.7%

Weak

Thin margins leave little room for error

Net Margin

156.8%

Good

Strong bottom-line conversion

Current Ratio

0.93

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.71

Defensive

Steadier than the market

52W Range Position

77%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

135.4 / 125.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

61.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹2 Cr	₹1 Cr	₹1 Cr	-10.0%
EBITDA	₹1 Cr	₹0 Cr	₹0 Cr	-₹0 Cr	—
EBITDA Margin	28.5%	12.0%	10.9%	-12.7%	—
PAT (Net Profit)	₹0 Cr	-₹0 Cr	-₹0 Cr	₹2 Cr	+257.7%
EPS	₹0.09	₹-0.23	₹-0.23	₹3.96	+253.0%
ROE	0.4%	-1.2%	-1.2%	16.8%	—
ROCE	2.9%	0.8%	0.6%	18.9%	—
Total Debt	₹3 Cr	₹2 Cr	₹2 Cr	—	—
Free Cash Flow	-₹1 Cr	-₹0 Cr	₹0 Cr	-₹0 Cr	—

🔴 Revenue has shrunk at 10.0% a year over 3 years.

🔴 EBITDA has turned negative, from ₹1 Cr to -₹0 Cr.

🔴 EBITDA Margin has fallen from 28.5% to -12.7% over 3 years (-41.1 pts).

🟢 PAT (Net Profit) has grown at 257.7% a year over 3 years.

🟢 EPS has grown at 253.0% a year over 3 years.

🟢 ROE has risen from 0.4% to 16.8% over 3 years (+16.4 pts).

🟢 ROCE has risen from 2.9% to 18.9% over 3 years (+16.0 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹14 Cr

Total Liabilities

₹1 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.2%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

Pankaj Polymers Standalone June 2026 Net Sales at Rs 0.96 crore, up 109.46% Y-o-Y

Moneycontrol.com, 18 Aug

Pankaj Polymers Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 22 Sept

Pankaj Polymers regularizes five directors including CEO Mayank Chawla

scanx.trade, 22 Aug

Pankaj Polymers signs expense management deal with SIS India

scanx.trade, 08 Oct

Sandeep Jain, Vikas Garg, Rahul Nagar and Himanshu Arora executed a share purchase agreement to acquire 58.15% stake in Pankaj Polymers Limited from group of shareholders for INR 64.5 million.

www.marketscreener.com, 14 JanM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Sandeep Jain Group Takes Control of Pankaj Polymers, New Promoter

Whalesbook, 01 Apr

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.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability

MiddlingFinancial Health · Growth · Valuation

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.

1 of 4 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑