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Check Before You Invest : Bai-Kakaji Polymers Ltd

BSE: 544670 NSE: ISIN: INE1IJQ01026
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Bai-Kakaji Polymers Ltd belong to?
Bai-Kakaji Polymers Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Bai-Kakaji Polymers Ltd a good quality company?
Bai-Kakaji Polymers Ltd is a weak quality company, based on a inconsistent 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 Bai-Kakaji Polymers Ltd undervalued or overvalued?
Bai-Kakaji Polymers Ltd appears Somewhat overvalued, as its key valuation ratios are higher 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 3-year
Historic Median
Price to Earnings 20.62 40.86
Price to Book 2.18 -
Price to Sales 1.15 1.30
EV to EBITDA 12.14 18.63
Q.4 Is Bai-Kakaji Polymers Ltd a good buy now?
Bai-Kakaji 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 Bai-Kakaji Polymers Ltd?
Bai-Kakaji Polymers Ltd revenue growth is 10.4% for FY-2025, which is below its 3-year CAGR of 18.93%, indicating slower growth.

Q.2 Gross Profit margin of Bai-Kakaji Polymers Ltd?
Bai-Kakaji Polymers Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.5% for FY-2025, which is above its 3-year median of 6.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Bai-Kakaji Polymers Ltd?
Bai-Kakaji Polymers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.42% for FY-2025, which is above its 3-year median of 7.13% indicating increasing margins.

Q.4 Net Profit Margin of Bai-Kakaji Polymers Ltd?
Bai-Kakaji Polymers Ltd Net Profit Margin is 5.58% for FY-2025, is above its 3-year median of 3.18%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 10.5 6.4
Operating Profit Margin (%) 10.42 7.13
Net Profit Margin (%) 5.58 3.18

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Bai-Kakaji Polymers Ltd?
Bai-Kakaji Polymers Ltd Return on Asset is 12.1%, which is above its 3-year historical median of 9.91%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Bai-Kakaji Polymers Ltd?
Bai-Kakaji Polymers Ltd Return on capital employed is 26.27% for FY-2025, which is above its 3-year historical median of 20.65%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Bai-Kakaji Polymers Ltd?
Bai-Kakaji Polymers Ltd Return on equity is 40.87% for FY-2025, which is above its 3-year historical median of 30.59%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Bai-Kakaji Polymers Ltd?
Bai-Kakaji Polymers Ltd Cash conversion cycle is 51 days, above its 3-year historical median of 42 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 2.17 3.11
ROE (%) 40.87 30.59
ROCE (%) 26.27 20.65
Cash Conversion Cycle 51 days 42 days

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

Q.9 Debt to Equity ratio of Bai-Kakaji Polymers Ltd?
Bai-Kakaji Polymers Ltd Debt-to-Equity ratio is 2.04, which is above the industry average of 0.25, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Bai-Kakaji Polymers Ltd?
Bai-Kakaji Polymers Ltd Debt to cash flow from operations is -10.98, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Bai-Kakaji Polymers Ltd?

Q.1 Promoter shareholding and pledge status of Bai-Kakaji Polymers Ltd?
Promoters hold 74.07% of the Bai-Kakaji Polymers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Bai-Kakaji Polymers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Bai-Kakaji Polymers Ltd vs industry peers?
Bai-Kakaji Polymers Ltd revenue CAGR is 18.93%, compared to the industry median CAGR of 4.30%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 10.4 4.3
Gross Profit Growth (%) 79 16.7
Operating Profit Growth (%) 61.9 11
Net Profit Growth (%) 100 20.5
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 2.17 1.11
ROE (%) 40.87 7.63
ROCE (%) 26.27 10.63
Cash Conversion Cycle (days) 51.35 75

Valuation & price assessment

Q.1 Stock return of Bai-Kakaji Polymers Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Bai-Kakaji Polymers Ltd vs historical?
The current P/E ratio of 20.62 is lower than its historical median of 40.86, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 20.62 40.86 25.87
Price to Book 2.18 - 1.92
Price to Sales 1.15 1.30 1.59
EV to EBITDA 12.14 18.63 13.18

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