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Check Before You Invest : Dutron Polymers Ltd

BSE: 517437 NSE: ISIN: INE940C01015
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Dutron Polymers Ltd belong to?
Dutron Polymers Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Dutron Polymers Ltd a good quality company?
Dutron Polymers Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Dutron Polymers Ltd undervalued or overvalued?
Dutron Polymers Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 25.03 31.59
Price to Book 2.2 3.30
Price to Sales 0.74 0.73
EV to EBITDA 13.4 15.73
Q.4 Is Dutron Polymers Ltd a good buy now?
Dutron Polymers Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Dutron Polymers Ltd?
Dutron Polymers Ltd revenue growth is -12.8% for FY-2025, which is below its 5-year CAGR of 3.13%, indicating slower growth.

Q.2 Gross Profit margin of Dutron Polymers Ltd?
Dutron Polymers Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.5% for FY-2025, which is above its 5-year median of 3.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Dutron Polymers Ltd?
Dutron Polymers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.5% for FY-2025, which is in line with its 5-year median of 4.44% indicating stable margins.

Q.4 Net Profit Margin of Dutron Polymers Ltd?
Dutron Polymers Ltd Net Profit Margin is 2.62% for FY-2025, is above its 5-year median of 2.33%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4.5 3.9
Operating Profit Margin (%) 4.5 4.44
Net Profit Margin (%) 2.62 2.33

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Dutron Polymers Ltd?
Dutron Polymers Ltd Return on Asset is 7.07%, which is above its 5-year historical median of 6.44%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Dutron Polymers Ltd?
Dutron Polymers Ltd Return on capital employed is 12.49% for FY-2025, which is below its 5-year historical median of 13.29%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Dutron Polymers Ltd?
Dutron Polymers Ltd Return on equity is 9.87% for FY-2025, which is below its 5-year historical median of 10.86%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Dutron Polymers Ltd?
Dutron Polymers Ltd Cash conversion cycle is 74 days, in line with its 5-year historical median of 73 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.7 3.07
ROE (%) 9.87 10.86
ROCE (%) 12.49 13.29
Cash Conversion Cycle 74 days 73 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Dutron Polymers Ltd?
Dutron Polymers Ltd Debt-to-Equity ratio is 0.16, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Dutron Polymers Ltd?
Dutron Polymers Ltd Debt to cash flow from operations is 0.88, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Dutron Polymers Ltd?

Q.1 Promoter shareholding and pledge status of Dutron Polymers Ltd?
Promoters hold 74.88% of the Dutron Polymers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Dutron Polymers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Dutron Polymers Ltd vs industry peers?
Dutron Polymers Ltd revenue CAGR is 3.13%, compared to the industry median CAGR of 4.71%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -12.8 4.7
Gross Profit Growth (%) - 14.3
Operating Profit Growth (%) -6.8 10.1
Net Profit Growth (%) 11 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.7 1.06
ROE (%) 9.87 5.91
ROCE (%) 12.49 8.75
Cash Conversion Cycle (days) 73.61 77

Valuation & price assessment

Q.1 Stock return of Dutron Polymers Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 2.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
2.7% -7.5% -6.3% -32%
Q.2 Valuation ratios of Dutron Polymers Ltd vs historical?
The current P/E ratio of 25.03 is lower than its historical median of 31.59, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 25.03 31.59 22.05
Price to Book 2.2 3.30 1.89
Price to Sales 0.74 0.73 1.33
EV to EBITDA 13.4 15.73 10.86

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