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Check Before You Invest : Polyplex Corporation Ltd

BSE: 524051 NSE: POLYPLEX ISIN: INE633B01018
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Polyplex Corporation Ltd belong to?
Polyplex Corporation Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Polyplex Corporation Ltd a good quality company?
Polyplex Corporation Ltd is a average quality company, based on a somewhat consistent 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 Polyplex Corporation Ltd undervalued or overvalued?
Polyplex Corporation Ltd appears Fair, as its key valuation ratios are in line with 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 45.93 11.58
Price to Book 4.24 5.50
Price to Sales 2.09 2.50
EV to EBITDA 23.19 15.39
Q.4 Is Polyplex Corporation Ltd a good buy now?
Polyplex Corporation Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Polyplex Corporation Ltd?
Polyplex Corporation Ltd revenue growth is 10.5% for FY-2025, which is above its 5-year CAGR of 4.19%, indicating faster growth.

Q.2 Gross Profit margin of Polyplex Corporation Ltd?
Polyplex Corporation Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.3% for FY-2025, which is below its 5-year median of 22.1%, indicating decreasing margins.

Q.3 Operating Profit Margin of Polyplex Corporation Ltd?
Polyplex Corporation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.03% for FY-2025, which is in line with its 5-year median of 7.03% indicating stable margins.

Q.4 Net Profit Margin of Polyplex Corporation Ltd?
Polyplex Corporation Ltd Net Profit Margin is 4.93% for FY-2025, is below its 5-year median of 17.88%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 9.3 22.1
Operating Profit Margin (%) 7.03 7.03
Net Profit Margin (%) 4.93 17.88

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Polyplex Corporation Ltd?
Polyplex Corporation Ltd Return on Asset is 8.81%, which is below its 5-year historical median of 30.08%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Polyplex Corporation Ltd?
Polyplex Corporation Ltd Return on capital employed is 13.7% for FY-2025, which is below its 5-year historical median of 41.83%. 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 Polyplex Corporation Ltd?
Polyplex Corporation Ltd Return on equity is 11.16% for FY-2025, which is below its 5-year historical median of 41.34%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Polyplex Corporation Ltd?
Polyplex Corporation Ltd Cash conversion cycle is 83 days, above its 5-year historical median of 72 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.83 1.78
ROE (%) 11.16 41.34
ROCE (%) 13.7 41.83
Cash Conversion Cycle 83 days 72 days

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

Q.9 Debt to Equity ratio of Polyplex Corporation Ltd?
Polyplex Corporation Ltd Debt-to-Equity ratio is 0.18, 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 Polyplex Corporation Ltd?
Polyplex Corporation Ltd Debt to cash flow from operations is 1.15, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Polyplex Corporation Ltd?

Q.1 Promoter shareholding and pledge status of Polyplex Corporation Ltd?
Promoters hold 26.73% of the Polyplex Corporation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Polyplex Corporation Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Polyplex Corporation Ltd vs industry peers?
Polyplex Corporation Ltd revenue CAGR is 4.19%, 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 (%) 10.5 4.7
Gross Profit Growth (%) 362.5 14.3
Operating Profit Growth (%) 0 10.1
Net Profit Growth (%) 0 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.83 1.06
ROE (%) 11.16 5.91
ROCE (%) 13.7 8.75
Cash Conversion Cycle (days) 83.14 77

Valuation & price assessment

Q.1 Stock return of Polyplex Corporation Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 15.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
15.5% -3.4% -13.3% -28.8%
Q.2 Valuation ratios of Polyplex Corporation Ltd vs historical?
The current P/E ratio of 45.93 is higher than its historical median of 11.58, indicating that the stock is trading above 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 45.93 11.58 22.05
Price to Book 4.24 5.50 1.89
Price to Sales 2.09 2.50 1.33
EV to EBITDA 23.19 15.39 10.86

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