Polylink Polymers (India) Limited

Basic Materials — Specialty Chemicals · BSE

₹21.69+₹0.67 (+3.19%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Polylink Polymers (India) Limited primarily manufactures and sells polymeric compounds and colour masterbatches in India, Turkey, Georgia, Bangladesh, Thailand, Nigeria, and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees45

Annual revenue₹83 Cr

How does it make money?

Turns over ₹83 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 45 employees supports ₹1.85 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.85 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 5.4% 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 +67% while net margin moved +14% 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+67%

Margin effect+14%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.9% is weak

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

57/ 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

32.9x

3Y Median

39.4x

40 monthly readings · mean 52.5x · range 16.2x–135.8x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 17% 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 19% below the peer median of 40.4x.

vs. its own history

Fair

39.4x median over 40 months · -17%

vs. sector peers

Fair

40.4x median of 4 peers · -19%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.3x

PEG

1.38

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.18x 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 · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1192% over 3 years, from ₹0 Cr to ₹6 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 132% against revenue up 67% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 9.1x to 3.3x.

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?

Sales are being booked faster than collected
Receivables are up 132% against revenue up 67%. 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.
Several serious flags at once
3 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

1Revenue growth stays above 14% a year✓ 18.6% CAGR
Latest reported year was 13.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
5Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

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

4 good · 4 neutral · 3 weak

Market Cap

₹48 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.9x

Fair

Fairly valued against the generic band

P/B Ratio

1.52x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.66

Profitable

Profitable on a per-share basis

ROE

3.9%

Weak

Weak capital efficiency

ROCE

5.4%

Weak

Low return on total capital employed

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

13.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

137.5%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

2.2%

Weak

Thin margins leave little room for error

Net Margin

1.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.85

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.11

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

21.7 / 22.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

41.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹50 Cr	₹74 Cr	₹90 Cr	₹83 Cr	+18.6%
EBITDA	₹2 Cr	₹3 Cr	₹4 Cr	₹3 Cr	+18.2%
EBITDA Margin	4.0%	4.6%	4.8%	4.0%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹2 Cr	₹1 Cr	+23.8%
EPS	₹0.29	₹0.78	₹0.96	₹0.55	+23.8%
ROE	2.5%	6.2%	7.1%	3.9%	—
ROCE	3.9%	8.7%	10.6%	5.4%	—
Total Debt	₹0 Cr	₹2 Cr	₹3 Cr	₹6 Cr	+134.6%
Free Cash Flow	₹4 Cr	-₹3 Cr	-₹0 Cr	-₹3 Cr	—

🟢 Revenue has grown at 18.6% a year over 3 years.

🟢 EBITDA has grown at 18.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 4.0% over 3 years.

🟢 PAT (Net Profit) has grown at 23.8% a year over 3 years.

🟢 EPS has grown at 23.8% a year over 3 years.

🟢 ROE has risen from 2.5% to 3.9% over 3 years (+1.5 pts).

🟢 ROCE has risen from 3.9% to 5.4% over 3 years (+1.5 pts).

🔴 Total Debt has grown at 134.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹47 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.9%

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

6 general

Polylink Polymers (India) Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 15 Sept

Polylink Polymers 33rd AGM: all three resolutions passed

scanx.trade, 28 Sept

Polylink Polymers (BSE:POLYLINK): Understanding Its Operations, Indu

Kalkine India, 14 Sept

Polylink Polymers (India) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Polylink Polymers schedules 33rd AGM for September 28, 2026

scanx.trade, 27 Sept

POLYLINK POLYMERS (INDIA) LTD. Share Price

Upstox, 04 Apr

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Profitability · 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 ↑