Platinum Industries Limited

Basic Materials — Specialty Chemicals · NSE

₹204.90+₹1.61 (+0.79%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:26 pm

Understanding the Business

Company site ↗

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

What does this company do?

Platinum Industries Limited engages in the manufacture and sale of poly vinyl chloride (PVC) stabilizers, chlorinated polyvinyl chloride (CPVC), lubricants, stearates, and speciality chemicals in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees155

Annual revenue₹450 Cr

How does it make money?

Turns over ₹450 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 155 employees supports ₹2.90 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.90 Cr

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 14.7% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +94% 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+94%

Margin effect-29%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.59 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

63/ 100

Fair

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

22.3x

3Y Median

26.7x

33 monthly readings · mean 28.6x · range 20.7x–41.3x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 17% below its 3y median of 26.7x. 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 45% below the peer median of 40.4x.

vs. its own history

Fair

26.7x median over 33 months · -17%

vs. sector peers

Cheap

40.4x median of 4 peers · -45%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.5x

PEG

2.01

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 52% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 61.3% to 11.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 68.8% to 14.7% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.29x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.2 points, from 23.7% to 16.5%.
🔴Receivables growing faster than salesFinancial
Receivables up 300% against revenue up 94% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹39 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 148% against revenue up 94% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 52% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 45% 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?

Margins are being competed away
EBITDA margin has fallen from 23.7% to 16.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 2.29x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 300% against revenue up 94%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 61.3% to 11.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 -5.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹39 Cr
Profit that never becomes cash eventually stops being profit.
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 12%✓ 14.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

1 good · 6 neutral · 4 weak

Market Cap

₹1,125 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.54x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.18

Profitable

Profitable on a per-share basis

ROE

11.7%

Moderate

Moderate capital efficiency

ROCE

14.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.29x

High

High leverage

Revenue Growth (YoY)

-5.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-12.5%

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

-₹39 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.7%

Average

Average margins

Net Margin

11.3%

Good

Strong bottom-line conversion

Current Ratio

4.17

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.59

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

206.0 / 215.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹231 Cr	₹264 Cr	₹392 Cr	₹450 Cr	+24.8%
EBITDA	₹55 Cr	₹63 Cr	₹75 Cr	₹74 Cr	+10.6%
EBITDA Margin	23.7%	23.7%	19.0%	16.5%	—
PAT (Net Profit)	₹38 Cr	₹44 Cr	₹49 Cr	₹52 Cr	+11.1%
EPS	₹6.9	₹10.55	₹8.94	₹9.46	+11.1%
ROE	61.3%	13.2%	12.8%	11.7%	—
ROCE	68.8%	17.4%	17.1%	14.7%	—
Total Debt	₹22 Cr	₹11 Cr	₹17 Cr	₹10 Cr	-21.8%
Free Cash Flow	₹10 Cr	₹16 Cr	-₹63 Cr	-₹39 Cr	—

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

🟢 EBITDA has grown at 10.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 23.7% to 16.5% over 3 years (-7.2 pts).

🟢 PAT (Net Profit) has grown at 11.1% a year over 3 years.

🟢 EPS has grown at 11.1% a year over 3 years.

🔴 ROE has fallen from 61.3% to 11.7% over 3 years (-49.5 pts).

🔴 ROCE has fallen from 68.8% to 14.7% over 3 years (-54.1 pts).

🟢 Total Debt has shrunk at 21.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹10 Cr to -₹39 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹549 Cr

Total Liabilities

₹94 Cr

Cash & Equivalents

₹63 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹38 Cr

Shareholding (proxy)

Institutional Holding

3.7%

Insider Holding

73.3%

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 mixed2 negative1 general

Platinum Industries Share Price Target 2027 to 2030: Analyst Outlook

Univest, 18 AugAnalyst view

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

Platinum Industries Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 01 Sept

We Think That There Are Some Issues For Platinum Industries (NSE:PLATIND) Beyond Its Promising Earnings

Simply Wall Street, 25 MayResults

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

Platinum Industries consolidated net profit declines 12.42% in the June 2026 quarter

Business Standard, 11 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Platinum Industries Q4 Profit Jumps 136% to ₹151M Driven by Specialty Chemical Demand

Sahi, 12 MayResults

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

Platinum Industries Q1FY27 net profit falls 14.9% to ₹111.3M

scanx.trade, 11 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Revenue growth is negative (-5.6%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑