The petrochemicals sector, in which Polylink Polymers operates, has seen mixed movements recently. While the Sensex opened positively with a gain of 91.42 points, it later retreated by 168.60 points to trade at 84,873.77, down 0.09%. The benchmark index remains close to its 52-week high of 85,290.06, trading 0.49% below that peak and maintaining a bullish stance above its 50-day and 200-day moving averages. In contrast, Polylink Polymers has underperformed both the sector and the broader market indices.
Over the last three days, Polylink Polymers has recorded a cumulative decline of 3.89%, with today's fall of 0.62% further extending this trend. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This contrasts sharply with the Sensex's positive technical indicators, highlighting the stock's relative weakness within the petrochemicals sector.
Perfect timing to enter! This micro-cap from Petrochemicals just turned profitable with growth momentum clearly building up. Get in before the broader market notices!
- New profitability achieved
- Growth momentum building
- Under-the-radar entry
Examining the stock’s one-year performance reveals a decline of 34.78%, a stark contrast to the Sensex’s gain of 9.74% over the same period. The stock’s 52-week high was Rs.39.9, underscoring the extent of the recent price erosion. This underperformance extends beyond the last year, with Polylink Polymers also lagging behind the BSE500 index over the past three years, one year, and three months.
Financially, Polylink Polymers exhibits several areas of concern. The company’s average Return on Equity (ROE) stands at 4.87%, reflecting modest profitability relative to shareholder equity. Operating profit has grown at an annual rate of 13.82% over the last five years, which is subdued compared to sectoral peers. Additionally, the company’s ability to service its debt is limited, with an average EBIT to interest ratio of 1.70, indicating tight coverage of interest obligations.
Recent results for the half-year ending September 2025 showed flat performance, with the debtors turnover ratio at a low 5.63 times, suggesting slower collection efficiency. Profit figures have also declined by 51.8% over the past year, further highlighting challenges in maintaining earnings momentum.
Is Polylink Polymers (India) your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- Better alternatives suggested
- Cross-sector comparison
- Portfolio optimization tool
Despite these challenges, the stock’s valuation metrics present a more balanced picture. The Return on Capital Employed (ROCE) is recorded at 4.2%, and the enterprise value to capital employed ratio stands at 1.5, suggesting a fair valuation relative to the company’s capital base. When compared to historical valuations of its peers, Polylink Polymers appears to be trading at a reasonable level.
Ownership remains concentrated with promoters holding the majority stake, which may influence strategic decisions and long-term direction. The company’s market capitalisation grade is rated at 4, reflecting its size and market presence within the petrochemicals sector.
In summary, Polylink Polymers (India) has experienced a notable decline to its 52-week low of Rs.20.5, driven by subdued financial performance and relative underperformance against sector and market benchmarks. The stock’s technical indicators and key financial ratios highlight ongoing pressures, while valuation metrics suggest a measured market assessment. Investors analysing this stock should consider these factors within the broader context of the petrochemicals industry and prevailing market conditions.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
