Polymechplast Machines Limited

Industrials — Specialty Industrial Machinery · BSE

₹45.35−₹2.52 (−5.26%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Polymechplast Machines Limited engages in the manufacturing and export of various range of plastic processing machines in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees130

Annual revenue₹69 Cr

How does it make money?

Turns over ₹69 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 130 employees supports ₹53.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹53.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA 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 16.3% 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 ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -0% while net margin moved +109% 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-0%

Margin effect+109%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.05 — 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

57/ 100

Average

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

Valuation

80/ 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

9.4x

3Y Median

39.4x

40 monthly readings · mean 34.6x · range 7.9x–56.0x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 76% below its 3y median of 39.4x. 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 86% below the peer median of 66.2x.

vs. its own history

Cheap

39.4x median over 40 months · -76%

vs. sector peers

Cheap

66.2x median of 4 peers · -86%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

19.3x

PEG

0.34

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 6.1% to 11.4%.
Return on capital is rising
ROCE has improved from 9.7% to 16.3%.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.
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

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.
🔴Receivables growing faster than salesFinancial
Receivables up 181% against revenue up -0% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 2.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 76% 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 86% 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 4.9% to 2.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 181% against revenue up -0%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 0%✓ 2.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 13%✓ 16.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 39.4x✓ 9.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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 · 2 neutral · 2 weak

Market Cap

₹25 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.4x

Cheap

Cheap against the generic band

P/B Ratio

0.90x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.82

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

16.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

-17.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

359.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.21%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-10.8%

Weak

Thin margins leave little room for error

Net Margin

4.0%

Average

Average bottom-line conversion

Current Ratio

1.19

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.05

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

46.4 / 47.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹69 Cr	₹59 Cr	₹65 Cr	₹69 Cr	-0.1%
EBITDA	₹3 Cr	₹3 Cr	₹2 Cr	₹2 Cr	-23.6%
EBITDA Margin	4.9%	4.3%	3.8%	2.2%	—
PAT (Net Profit)	₹2 Cr	₹1 Cr	₹1 Cr	₹3 Cr	+27.8%
EPS	₹2.74	₹1.29	₹1.25	₹5.72	+27.8%
ROE	6.1%	2.8%	2.7%	11.4%	—
ROCE	9.7%	6.4%	5.6%	16.3%	—
Total Debt	₹4 Cr	₹1 Cr	₹4 Cr	₹5 Cr	+3.6%
Free Cash Flow	₹1 Cr	₹3 Cr	-₹1 Cr	-₹6 Cr	—

🟡 Revenue has been broadly flat over 3 years (-0.1% a year).

🔴 EBITDA has shrunk at 23.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 4.9% to 2.2% over 3 years (-2.7 pts).

🟢 PAT (Net Profit) has grown at 27.8% a year over 3 years.

🟢 EPS has grown at 27.8% a year over 3 years.

🟢 ROE has risen from 6.1% to 11.4% over 3 years (+5.3 pts).

🟢 ROCE has risen from 9.7% to 16.3% over 3 years (+6.6 pts).

🔴 Total Debt has grown at 3.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹53 Cr

Total Liabilities

₹25 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹5 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.0%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

22 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

3 positive3 general

Polymechplast AGM approves 10% dividend and director reappointments

scanx.trade, 01 OctCapital return

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

Polymechplast Machines RTA shifts branch to Mumbai

scanx.trade, 19 Jun

Hindustan Aeronautics consolidated net profit rises 14.88% in the June 2026 quarter

Business Standard, 12 AugResults

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

Advance Metering Technology Ltd. Share Price: 9.39% Rise

Univest, 28 Jul

Polymechplast Machines Limited (526043) Leadership & Management Team Analysis

Simply Wall Street, 16 Nov

ITC reports 73% drop in Q4 PAT at Rs 5,388 crore; declares final dividend of Rs 8

Business Standard, 21 MayCapital return

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

Watch Items

Revenue growth is negative (-17.1%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability

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.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑