Polymechplast Ma (526043)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

Strengths

• Sales growth of 34.69% and profit growth of 88.24% show strong recent momentum.
• Latest quarter sales of ₹20 Cr and net profit of ₹1 Cr indicate improving activity.
• Piotroski F-Score of 7/9 suggests better financial health and operating efficiency.
• Price-to-book of 1.27 against book value ₹46.10 provides some asset support.
• Dividend yield of 2.05% offers a small income cushion while waiting.

Concerns

• ROE of 2.09% and ROCE of 5.51% are far too low for a durable compounder.
• Trailing P/E of 52.65 is rich; valuation depends on continued growth from a small profit base.
• Promoter holding and debt-to-equity data are not available, leaving governance and leverage unverified.
• Absolute scale is tiny with a ₹33 Cr market cap and ₹1 Cr quarterly net profit, making results potentially lumpy.

AI Analysis

Let me apply the same test I would to any business. First, return on capital: Polymechplast earns only 2.09% on equity and 5.51% on capital employed. That is not a wonderful business. It means the assets in place are producing meagre returns, and I would demand a wide margin of safety to own such a machine. The trailing P/E of 52.65 confirms the market is pricing in the 88.24% profit growth and 34.69% sales growth. But growth from a small base is not the same as durable growth. The latest quarter shows sales of ₹20 Cr and net profit of ₹1 Cr; if sustained for a full year, that would be roughly ₹4 Cr, which makes the share look cheaper. But one quarter is not a trajectory. Book value is ₹46.10, so at ₹58.57 I am paying 1.27 times book for a business earning 2% on that book. The Piotroski score of 7/9 does show some recent strength, and the 2.05% dividend gives a token cushion. Still, I have no promoter holding data and no debt-to-equity ratio. In a ₹33 Cr market-cap industrial company, undisclosed ownership or leverage worries me far more than a promising quarterly number. The PEG of 0.86 appears attractive, but a PEG built on one year’s rebound is unreliable. I prefer to wait until returns improve consistently and the price offers a margin of safety. This looks like a possible turnaround, not yet a compounder.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer