G M Polyplast (543239)

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

Key Financials

Strengths

• ROCE of 28.81% indicates strong capital efficiency
• P/E of 13.18 is reasonable for a profitable small-cap
• Latest quarter profitable with sales of ₹45 Cr and net profit of ₹4 Cr
• Positive sales growth of 3.99% shows some business momentum

Concerns

• Profit growth is negative at -3.31%, showing earnings weakness
• Zero dividend yield offers no income support to shareholders
• Piotroski F-Score of 4/9 hints at weak financial health
• PEG of 3.30 is expensive relative to very low growth; data on book value, debt and promoter holding is missing

AI Analysis

At ₹186.95, G M Polyplast carries a market cap of ₹261 Cr and a P/E of 13.18. That is not expensive on the surface, but as Graham taught, price is what you pay, value is what you get. The business earns a very healthy ROCE of 28.81%, which suggests management is putting capital to good use. The latest quarter shows sales of ₹45 Cr and net profit of ₹4 Cr, so underlying operations are profitable. However, I see little evidence of a durable moat. This is a plastic products company in a competitive industrial segment; sales grew only 3.99% and profit actually fell 3.31%. For a shareholder, a no-dividend stock with declining profits needs growth to justify holding. The Piotroski F-score of 4 out of 9 is a red flag: it tells me financial health may be deteriorating, or at least not improving. The PEG ratio of 3.30 reinforces my caution — 3.3 times growth is not a bargain when growth is barely positive. Also, I cannot assess book value, debt-to-equity or promoter holding due to insufficient data; in a small-cap, that absence of transparency worries me. Buffett would rather pay a fair price for a wonderful business; here I do not yet know if this is wonderful or merely average. The 52-week range of ₹55.00 to ₹186.95 shows the stock has already run up significantly, so much optimism is priced in. I would keep this on my watchlist, not my buy list. Margin of safety is thin when profit is declining and data is incomplete. Let the numbers prove consistency over several quarters before committing capital.

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