Sati Poly Plast Limited

Sector n/a · NSE

₹246.40−₹12.95 (−4.99%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, 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, 6:59 pm

Understanding the Business

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

How does it make money?

Turns over ₹273 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 29.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +43% while net margin moved -22% 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+43%

Margin effect-22%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

35/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

17.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 54% over 3 years.
Cash generation is improving
Free cash flow is up 470% over 3 years.
High return on capital employed
ROCE of 29.4% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 4.5% to 2.7% over 3 years.
Return on equity is falling
ROE has dropped from 77.7% to 17.6% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 383% against revenue up 43% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 29.4% 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.
Deleveraging frees up earnings
Debt is down 54% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 4.5% to 2.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 383% against revenue up 43%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 77.7% to 17.6%. 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

1Revenue growth stays above 10% a year✓ 12.7% CAGR
Latest reported year was -9.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 2.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 26%✓ 29.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹122 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

17.6%

Strong

Strong capital efficiency

ROCE

29.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.62x

Moderate

Moderate leverage

Revenue Growth (YoY)

-9.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

132.7%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

12.0%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

1.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.26

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

33.8 / 38.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

74.1

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹191 Cr	₹179 Cr	₹302 Cr	₹273 Cr	+12.7%
EBITDA	₹9 Cr	₹9 Cr	₹16 Cr	₹7 Cr	-4.2%
EBITDA Margin	4.5%	5.1%	5.2%	2.7%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	-₹11 Cr	₹3 Cr	+3.8%
EPS	₹6.24	₹5.71	₹-23.19	—	—
ROE	77.7%	22.9%	-65.3%	17.6%	—
ROCE	29.3%	19.6%	-57.4%	29.4%	—
Total Debt	₹26 Cr	₹22 Cr	₹15 Cr	₹12 Cr	-22.9%
Free Cash Flow	₹1 Cr	₹3 Cr	-₹13 Cr	₹4 Cr	+78.7%

🟢 Revenue has grown at 12.7% a year over 3 years.

🔴 EBITDA has shrunk at 4.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 4.5% to 2.7% over 3 years (-1.7 pts).

🟢 PAT (Net Profit) has grown at 3.8% a year over 3 years.

🔴 ROE has fallen from 77.7% to 17.6% over 3 years (-60.1 pts).

🟡 ROCE has held roughly flat at 29.4% over 3 years.

🟢 Total Debt has shrunk at 22.9% a year over 3 years.

🟢 Free Cash Flow has grown at 78.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹75 Cr

Total Liabilities

₹55 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹0 Cr

Recent News

6 general

Sati Poly Plast Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Sati Poly Plast Reports Turnaround with ₹345.32 Lakh Net Profit in FY26; Revenue at ₹27,331.80 Lakhs

scanx.trade, 01 Jun

Sati Poly Plast lists at 90% premium over IPO price on NSE SME

Moneycontrol.com, 22 Jul

Microcap stock in focus after company expects ₹25 Cr fire insurance claim by Diwali 2025 By Trade Brains

Investing.com India, 18 Aug

Sati Poly Plast (NSEI:SATIPOLY) - Stock Analysis

Simply Wall Street, 20 Jul

Sati Poly Plast IPO to open for subscription on July 12; price band fixed at ₹123 to ₹130 apiece

Livemint, 08 Jul

Watch Items

Revenue growth is negative (-9.5%) 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.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics 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

StrongFinancial Health

MiddlingBusiness Quality · Profitability · Valuation

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

All 5 tripwires holding · see Key things to watch ↑