Polycon International Limited

Consumer Cyclical — Packaging & Containers · BSE

₹30.50+₹0.99 (+3.35%)

DalalBaazaar Score

25 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:51 pm

Understanding the Business

Company site ↗

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

What does this company do?

Polycon International Limited engages in the manufacture and trade of PETS products in India.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees85

Annual revenue₹18 Cr

How does it make money?

Turns over ₹18 Cr a year. Of every ₹100 of sales, about ₹-16 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 85 employees supports ₹20.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹20.7 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?Little sign of one

Returns on capital of -3.5% 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 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 -33% while net margin moved -6765% 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-33%

Margin effect-6765%

DalalBaazaar Score

25/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking

Quality vs. Valuation

Company Quality

26/ 100

Weak

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

Valuation

19/ 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

EV/EBITDA

118.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 1.7% to -260.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 8.5% to -3.5% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 5 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 31.54x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.5x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹3 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.3 points, from 11.6% to 2.4%.
🔴Inventory building faster than salesFinancial
Inventory up 39% against revenue up -33% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.1x to -0.5x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 11.6% to 2.4%. 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 83.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 1.7% to -260.3%. 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.
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%✓ 2.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 83.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ -0.5x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -3.5%
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

0 good · 3 neutral · 8 weak

Market Cap

₹15 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

Not available

No data

Source didn't return this field

EPS (TTM)

₹-6.06

Loss-making

Negative earnings per share — the business is losing money

ROE

-241.8%

Weak

Weak capital efficiency

ROCE

-3.5%

Weak

Low return on total capital employed

Debt/Equity

31.54x

High

High leverage

Revenue Growth (YoY)

-28.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-2118.3%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

-2.1%

Weak

Assets generate little profit

Operating Margin

-16.5%

Weak

Thin margins leave little room for error

Net Margin

-18.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.75

Defensive

Steadier than the market

52W Range Position

77%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

27.0 / 24.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

75.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹26 Cr	₹23 Cr	₹22 Cr	₹18 Cr	-12.5%
EBITDA	₹3 Cr	₹3 Cr	₹1 Cr	₹0 Cr	-48.5%
EBITDA Margin	11.6%	13.7%	6.3%	2.4%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	-₹3 Cr	—
EPS	₹0.13	₹0.13	₹0.29	₹-5.88	—
ROE	1.7%	1.6%	3.6%	-260.3%	—
ROCE	8.5%	7.8%	7.5%	-3.5%	—
Total Debt	₹29 Cr	₹33 Cr	₹33 Cr	₹35 Cr	+5.9%
Free Cash Flow	-₹1 Cr	-₹2 Cr	-₹2 Cr	₹2 Cr	—

🔴 Revenue has shrunk at 12.5% a year over 3 years.

🔴 EBITDA has shrunk at 48.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.6% to 2.4% over 3 years (-9.3 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹3 Cr.

🔴 EPS has turned negative, from ₹0.13 to ₹-5.88.

🔴 ROE has fallen from 1.7% to -260.3% over 3 years (-262.0 pts).

🔴 ROCE has fallen from 8.5% to -3.5% over 3 years (-12.0 pts).

🔴 Total Debt has grown at 5.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹43 Cr

Total Liabilities

₹42 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.9%

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 positive3 mixed1 negative1 general

Polycon Q2FY27 Results: Net loss narrows 12% YoY to ₹89 crore

scanx.trade, 14 OctResults

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

Polycon International Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 11 Sept

Polycon International submits voting results for 35th AGM held on Sep 30

scanx.trade, 30 SeptResults

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

GHCL standalone net profit rises 32.05% in the June 2026 quarter

Business Standard, 01 AugResults

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

Q1 results today: Divi's Labs, Muthoot Finance, APL Apollo among over 30 companies set to announce Q1 earnings

Livemint, 01 AugResults

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

Polycon International reports ₹287.61 lakh loss in FY26 amid revenue drop

scanx.trade, 30 SeptResults

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

Watch Items

Revenue growth is negative (-28.1%) 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.
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

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

Points for each in the Score ↑

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

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑