Polylink Poly. (531454)
CyclicalScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹33.96 |
| Market Cap | ₹79.6 Cr |
| P/E Ratio | 78.04 |
| ROCE | 10.96% |
| ROE | 1.76% |
| Dividend Yield | 0% |
| Profit Growth | -74.74% |
| Debt/Equity | — |
| Sales Growth | -8.79% |
| 52-Week Range | ₹14.52 — ₹33.96 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹12.41 |
Strengths
- ROCE of 10.96% suggests underlying operating assets still generate some return, even if equity returns are weak.
- Positive book value of ₹12.41 per share provides a basic capital base.
- Latest quarter sales of ₹20 crore show the business still has revenue scale despite the downturn.
Concerns
- P/E of 78.04 with profit growth of -74.74% shows earnings support has collapsed.
- ROE of 1.76% versus P/B of 2.74 means paying nearly 3x book for a sub-2% return.
- Latest quarter net profit is ₹0 crore, so current operations are barely profitable.
- Piotroski F-score of 3/9 and zero dividend yield signal weak financial health and no shareholder income.
AI Analysis
Let me look at Polylink Poly as a business, not a ticker. With a market cap of ₹80 crore, this is a microcap petrochemicals firm, and my first instinct is caution. The economics are poor: return on equity is just 1.76%, while a bank fixed deposit can earn more without business risk. Yes, ROCE is 10.96%, but shareholders are not seeing that benefit; net profit fell 74.74% and the latest quarter delivered roughly zero profit on ₹20 crore of sales. Revenue is also shrinking, down 8.79%. A Piotroski F-score of 3 out of 9 reinforces my suspicion: this is a financially weak operation, not a wealth-compounding machine. At ₹33.96, the stock trades at 78 times trailing earnings and 2.74 times book value. Book value is ₹12.41 per share. So I am asked to pay nearly three times book for a company earning less than 2% on that book. There is no dividend to compensate me while I wait. The stock has rallied from ₹14.52 to the top of its 52-week range, but price action is not business performance. In Graham's terms, there is no margin of safety. I would need strong evidence of a durable earnings recovery and sensible capital allocation before even considering this. Petrochemicals are cyclical, and Polylink may be near a trough, but buying a low-ROE, no-dividend, zero-profit microcap at a premium valuation is speculation, not investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer