Gulshan Polyols (GULPOLY)

FairStock Score: 41/100 — MIXED

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear both Graham’s skeptic and Buffett’s business-owner hat here. At ₹188.08, Gulshan Polyols sells for ₹1,170 Cr, with a P/E of 7.96 and P/B of 1.63 against book value of ₹115.23. That is not demanding if earnings are real and durable. The promoter owns 66.80%, so skin in the game is meaningful. The latest quarter showed ₹542 Cr sales and ₹16 Cr net profit; trailing profit growth of 306.60% and a five-year revenue CAGR of 24.72% explain the excitement. PEG of 0.05 is eye-catching, and Piotroski F-Score of 7/9 suggests improving fundamentals. Debt/Equity is 0.43, not alarming, and ROE of 12.72% is respectable. But the acid test is ROCE: 6.30% is low. A business earning only 6.3% on capital may struggle to create value unless it improves. Sales growth of 7.90% is also modest, so the huge profit jump may be base-effect or one-off rather than a durable moat. FairStock Score of 41/100 (MIXED) warns me not to overpay for hope. Dividend yield is only 0.80%, so I’m not being paid much while waiting. The 52-week range of ₹121.50–₹227.65 shows Mr. Market has swung widely. This looks like a low-expectation fast grower, but not a high-quality compounder yet. I’d demand a margin of safety, watch ROCE and repeatable sales/profit growth, and remember Graham’s warning: a low P/E without durable returns on capital can be a trap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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