Premier Polyfilm Ltd.

Basic Materials — Specialty Chemicals · NSE

₹111.92+₹5.79 (+5.46%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, 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, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Premier Polyfilm Ltd. — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Premier Polyfilm Ltd. engages in the manufacture and sale of vinyl flooring, sheeting, and artificial leather cloths in India.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees323

Annual revenue₹338 Cr

How does it make money?

Turns over ₹338 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 323 employees supports ₹1.05 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.05 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 28.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 24.5% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +18% while net margin moved +131% 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+18%

Margin effect+131%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 31.9x already prices in growth
✗ P/E is 51% above its own historical median of 21.1x — expensive by its own standards
✗ P/B of 6.96x is a steep premium to book

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

55/ 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

31.9x

3Y Median

21.1x

40 monthly readings · mean 21.0x · range 4.6x–42.3x

Sector Median

40.4x

median of 4 sector peers

⚠️Current valuation is approximately 51% above its 3y median of 21.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 21% below the peer median of 40.4x.

vs. its own history

Expensive

21.1x median over 40 months · +51%

vs. sector peers

Cheap

40.4x median of 4 peers · -21%

vs. generic bands

Fair

15x–35x

EV/EBITDA

24.7x

PEG

0.80

What's Good / What's Bad

🟢 What's Going Well8

Margins are improving
EBITDA margin is up from 7.8% to 14.2% over 3 years.
Debt is being paid down
Total debt is down 44% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 15.8% to 21.7%.
Return on capital is rising
ROCE has improved from 19.6% to 28.3%.
High return on capital employed
ROCE of 28.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.14x 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

1 item require attention · 1 watch

🟡Inventory building faster than salesFinancial
Inventory up 72% against revenue up 18% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 7.8% to 14.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 44% 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 21% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹18 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 51% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 5.6% 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.
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 12%✓ 14.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.6% CAGR
Latest reported year was 38.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹18 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 25%✓ 28.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹1,172 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.9x

Fair

Fairly valued against the generic band

P/B Ratio

6.96x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹3.51

Profitable

Profitable on a per-share basis

ROE

24.5%

Strong

Strong capital efficiency

ROCE

28.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

38.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

23.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.13%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

15.1%

Good

Assets are working hard

Operating Margin

10.6%

Average

Average margins

Net Margin

9.3%

Average

Average bottom-line conversion

Current Ratio

2.84

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.42

Defensive

Steadier than the market

52W Range Position

90%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

98.0 / 90.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

62.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹286 Cr	₹294 Cr	₹300 Cr	₹338 Cr	+5.6%
EBITDA	₹22 Cr	₹34 Cr	₹41 Cr	₹48 Cr	+29.2%
EBITDA Margin	7.8%	11.6%	13.5%	14.2%	—
PAT (Net Profit)	₹12 Cr	₹21 Cr	₹26 Cr	₹32 Cr	+39.7%
EPS	₹1.12	₹9.83	₹2.48	₹3.04	+39.7%
ROE	15.8%	21.8%	22.1%	21.7%	—
ROCE	19.6%	27.4%	28.1%	28.3%	—
Total Debt	₹33 Cr	₹15 Cr	₹21 Cr	₹19 Cr	-17.8%
Free Cash Flow	-₹5 Cr	₹13 Cr	₹14 Cr	₹18 Cr	—

🟢 Revenue has grown at 5.6% a year over 3 years.

🟢 EBITDA has grown at 29.2% a year over 3 years.

🟢 EBITDA Margin has risen from 7.8% to 14.2% over 3 years (+6.5 pts).

🟢 PAT (Net Profit) has grown at 39.7% a year over 3 years.

🟢 EPS has grown at 39.7% a year over 3 years.

🟢 ROE has risen from 15.8% to 21.7% over 3 years (+5.9 pts).

🟢 ROCE has risen from 19.6% to 28.3% over 3 years (+8.7 pts).

🟢 Total Debt has shrunk at 17.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹5 Cr to ₹18 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹202 Cr

Total Liabilities

₹54 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹27 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

83.4%

Corporate Actions

Dividend Rate

₹0.15

Ex-Dividend Date

17 Sept 2026

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

2 positive4 general

PREMIER POLYFILM Share Price

Upstox, 16 Oct

Here's Why We Think Premier Polyfilm (NSE:PREMIERPOL) Might Deserve Your Attention Today

Simply Wall Street, 19 Jun

Premier Polyfilm Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Premier Polyfilm Q1 net profit rises 51% to ₹9.08 crore

scanx.trade, 18 JulResults

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

Premier Polyfilm (PREMIERPOL.NS) Slips 3.26% to ₹92.76, Testing Key Support Zone - Stock Buy Zone

https://www.siam.in/, 30 Sept

Premier Polyfilm standalone net profit rises 51.33% in the June 2026 quarter

Business Standard, 18 JulResults

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

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingRisk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑