Polyplex Corpn (POLYPLEX)

FairStock Score: 9/100 — RISKY

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

Key Financials

Strengths

• Low debt-to-equity of 0.14 provides financial stability during the downturn
• Dividend yield of 1.59% offers some income while waiting for recovery
• Latest quarter remains profitable with ₹30 Cr net profit on ₹1,682 Cr sales
• Sales decline of only -2.25% suggests demand is relatively resilient despite profit collapse

Concerns

• P/E of 88.00 with profit down 74.45% means paying a rich multiple for severely depressed earnings
• P/B of 4.02 is a steep premium to book value while ROCE is only 7.16% and ROE is 9.79%
• Piotroski F-Score of 3/9 indicates weak overall financial health
• Promoter holding of 26.73% is low for an Indian listed company, raising governance questions

AI Analysis

Let me start with a simple rule: the greater the price you pay for a business, the higher the return you need to justify it. Polyplex is selling at ₹864.05, which is 88 times trailing earnings and 4.02 times book value. Yet those earnings have collapsed by 74.45% over the past year, and sales have actually shrunk by 2.25%. That is not the profile of a franchise; that is a cyclical business caught in a downturn. The balance sheet is the only real comfort. Debt-to-equity is just 0.14, so the company is not at risk of bankruptcy. The dividend yield of 1.59% gives a small return while waiting. But that does not make a bargain. Book value is ₹215.04, so the market is asking me to pay four times the net assets for a business that earned only 9.79% on equity and 7.16% on capital. Those returns are mediocre. If you cannot earn a good return on capital, the asset base is not worth a premium. Worst of all, promoter holding is just 26.73%. In India, I like to see the people running the shop own a much larger piece of it, so their fortunes are tied to mine. The Piotroski score of 3 out of 9 tells me the financial picture has deteriorated in many small ways. The latest quarter's net profit of ₹30 crore on sales of ₹1,682 crore is a thin 1.8% margin. I would rather miss this cycle than buy it at 88 times depressed earnings. Mr. Market will offer better prices if the cycle worsens, or the fundamentals will improve and I can pay up later. Either way, there is no margin of safety today.

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