Vinayak Polycon International Limited

Consumer Cyclical — Packaging & Containers · BSE

₹20.50−₹0.50 (−2.38%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Vinayak 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?

Vinayak Polycon International Limited manufactures and trades polyethylene terephthalate (PET) products in India. It offers PET bottles, jars, and preforms, as well as PP caps and lids.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees45

Annual revenue₹20 Cr

How does it make money?

Turns over ₹20 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 45 employees supports ₹44.2 lakh of revenue a year, the signature of a people-led business.

EBITDA margin4.6%

Net margin0.3%

Revenue / employee₹44.2 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 5.9% 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.

ROCE5.9%

ROE1.0%

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 -9% while net margin moved -52% 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-9%

Margin effect-52%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 3.0% a year
✗ Profit has declined at 23.8% a year
✗ Profit fell 17.6% in the latest year

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

37/ 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.

Historical Valuation

Current P/E

157.7x

3Y Median

41.4x

40 monthly readings · mean 52.6x · range 25.6x–125.6x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 281% above its 3y median of 41.4x. 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 128% above the peer median of 69.2x.

vs. its own history

Expensive

41.4x median over 40 months · +281%

vs. sector peers

Expensive

69.2x median of 4 peers · +128%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

157.7x

P/B

1.25x

EV/EBITDA

10.6x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 35% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 8.5% to 5.9% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 85% against revenue growth of -9% — stock may not be moving.
Valuation above its historical average
At 157.7x the stock trades 281% above its own median of 41.4x.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.
🔴Inventory building faster than salesFinancial
Inventory up 85% against revenue up -9% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 56% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 35% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

The debt load needs earnings to hold up
Debt is 4.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 281% 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.
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
2 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

1EBITDA margin holds above 3%✓ 4.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 5.9%
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

3 good · 3 neutral · 5 weak

Market Cap

₹6 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

157.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.25x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.13

Profitable

Profitable on a per-share basis

ROE

1.0%

Weak

Weak capital efficiency

ROCE

5.9%

Weak

Low return on total capital employed

Debt/Equity

0.77x

Moderate

Moderate leverage

Revenue Growth (YoY)

20.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-17.6%

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

CMP

₹20.5

Operating Margin

1.8%

Weak

Thin margins leave little room for error

Net Margin

0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.48

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

21.0 / 21.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹22 Cr	₹22 Cr	₹21 Cr	₹20 Cr	-3.0%
EBITDA	₹1 Cr	₹2 Cr	₹1 Cr	₹1 Cr	-7.4%
EBITDA Margin	5.3%	7.4%	6.0%	4.6%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-23.8%
EPS	₹0.38	₹0.96	₹0.73	₹0.17	-23.5%
ROE	2.6%	6.2%	4.5%	1.0%	—
ROCE	8.5%	12.2%	9.4%	5.9%	—
Total Debt	₹6 Cr	₹4 Cr	₹3 Cr	₹4 Cr	-13.6%
Free Cash Flow	-₹2 Cr	₹2 Cr	₹2 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 3.0% a year over 3 years.

🔴 EBITDA has shrunk at 7.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 4.6% over 3 years.

🔴 PAT (Net Profit) has shrunk at 23.8% a year over 3 years.

🔴 EPS has shrunk at 23.5% a year over 3 years.

🔴 ROE has fallen from 2.6% to 1.0% over 3 years (-1.6 pts).

🔴 ROCE has fallen from 8.5% to 5.9% over 3 years (-2.7 pts).

🟢 Total Debt has shrunk at 13.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹10 Cr

Total Liabilities

₹5 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

87.9%

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

2 positive3 mixed1 general

Vinayak Polycon shareholders pass all resolutions at 17th AGM

scanx.trade, 12 Sept

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.

Vinayak Polycon International Publishes Q3FY26 Results in Newspapers Under Regulation 30

scanx.trade, 01 FebResults

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

Q1 Results On August 1: Divi's Labs, Muthoot Finance, CDSL Among Over 30 Firms To Share Earnings

NDTV Profit, 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.

Central Depository Services (India) consolidated net profit rises 14.80% 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.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate11.2/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak4.5/15

🔴ValuationDemanding6.2/15

🔴RiskHigh4/10

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

This thesis breaks if

✓EBITDA margin holds above 3%4.6%
✗Debt / EBITDA falls below 3x4.2x
✗Free cash flow remains positive-₹1 Cr
✗Interest cover stays above 3x1.6x
✗ROCE stays above 8%5.9%