Polyspin Exports Limited

Consumer Cyclical — Packaging & Containers · NSE

₹30.76+₹0.83 (+2.77%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Polyspin Exports Limited manufactures and sells flexible intermediate bulk container bags, polypropylene woven fabrics, and multifilament yarns in India. The company offers U panel bags, circular big bags, Q bags, UN certified bags, and food grade bags.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees2,080

Annual revenue₹223 Cr

How does it make money?

Turns over ₹223 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 2,080 employees supports ₹10.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin6.6%

Net margin2.5%

Revenue / employee₹10.7 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.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 10.4% 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.

ROCE10.4%

ROE8.0%

Peer median ROE25.9%

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 +8% while net margin moved -5% 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+8%

Margin effect-5%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.0% is weak

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

74/ 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

5.4x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 92% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -92%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

5.4x

P/B

0.44x

EV/EBITDA

6.9x

PEG

4.88

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 4.7% to 6.6% over 3 years.
Cash generation is improving
Free cash flow is up 2873% over 3 years.
Return on capital is rising
ROCE has improved from 7.1% to 10.4%.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.7% to 6.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 92% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 2.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 5%✓ 6.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.8x
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✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 2.7% CAGR
Latest reported year was -7.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹29 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 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
✗ 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

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹31 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.4x

Cheap

Cheap against the generic band

P/B Ratio

0.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.66

Profitable

Profitable on a per-share basis

ROE

8.0%

Weak

Weak capital efficiency

ROCE

10.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.02x

Moderate

Moderate leverage

Revenue Growth (YoY)

-7.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

7.1%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹29 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹30.76

Operating Margin

2.1%

Weak

Thin margins leave little room for error

Net Margin

2.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.53

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

36%

Mid-range

Technical Snapshot

RSI (14)

58.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹205 Cr	₹199 Cr	₹222 Cr	₹223 Cr	+2.7%
EBITDA	₹10 Cr	₹4 Cr	₹17 Cr	₹15 Cr	+14.7%
EBITDA Margin	4.7%	1.8%	7.6%	6.6%	—
PAT (Net Profit)	₹5 Cr	-₹3 Cr	₹4 Cr	₹6 Cr	+1.1%
EPS	₹5.37	₹-2.78	₹4.1	—	—
ROE	9.0%	-4.8%	6.5%	8.0%	—
ROCE	7.1%	-0.7%	14.5%	10.4%	—
Total Debt	₹70 Cr	₹75 Cr	₹85 Cr	₹71 Cr	+0.4%
Free Cash Flow	₹1 Cr	-₹5 Cr	-₹10 Cr	₹29 Cr	+209.8%

🟢 Revenue has grown at 2.7% a year over 3 years.

🟢 EBITDA has grown at 14.7% a year over 3 years.

🟢 EBITDA Margin has risen from 4.7% to 6.6% over 3 years (+1.8 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.1% a year).

🔴 ROE has fallen from 9.0% to 8.0% over 3 years (-1.0 pts).

🟢 ROCE has risen from 7.1% to 10.4% over 3 years (+3.3 pts).

🟡 Total Debt has been broadly flat over 3 years (0.4% a year).

🟢 Free Cash Flow has grown at 209.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹163 Cr

Total Liabilities

₹93 Cr

Total Debt

₹71 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹32 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.5%

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 mixed1 negative4 general

Polyspin Exports Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 11 Sept

Compare with

Equitymaster, 26 Sept

Polyspin Exports reports ₹390.04 Lakhs net profit in FY26, sets Aug 21 AGM date

scanx.trade, 28 Jul

Sree Rayalaseema Hi-Strength Hypo Ltd leads gainers in 'B' group

Business Standard, 21 Sept

Polyspin Exports Q1FY27 standalone net profit falls 24% to ₹87 lakh

scanx.trade, 13 AugResults

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

Sri Ramakrishna Mills (Coimbatore) reports standalone net profit of Rs 2.06 crore in the June 2026 quarter

Business Standard, 13 AugResults

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

Watch Items

Revenue growth is negative (-7.4%) 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

🟡Business QualityAdequate10.2/20

🟡Financial HealthAdequate11.6/20

🔴GrowthWeak7.5/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive13/15

🔴RiskHigh4.4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 5%6.6%
✗Debt / EBITDA falls below 3x4.8x
✗Interest cover stays above 3x1.9x
✗Revenue growth stays above 4% a year2.7% CAGR
✓Free cash flow remains positive₹29 Cr