Recent Price Movement and Market Context
On 4 December 2025, Polylink Polymers (India) recorded a day-on-day price change of -2.16%, closing at Rs.18.84, the lowest level in the past year. This decline extends a five-day losing streak during which the stock has returned -10.92%. The stock’s performance today lagged behind the petrochemicals sector by 3.82%, indicating relative weakness within its industry peers.
In contrast, the broader market showed resilience. The Sensex, after opening lower by 119.25 points, recovered to close at 85,170.97, a gain of 0.08%. The benchmark index remains close to its 52-week high of 86,159.02, trading just 1.16% below that peak. The Sensex’s upward momentum is supported by its position above key moving averages, with the 50-day moving average trading above the 200-day moving average, signalling a generally bullish market environment. Mega-cap stocks led the gains, further highlighting the divergence between Polylink Polymers and the broader market.
Technical Indicators and Moving Averages
Polylink Polymers is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests persistent downward pressure on the stock price and a lack of short- to long-term momentum. The gap between the current price and these moving averages underscores the stock’s recent weakness relative to its historical trading levels.
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Long-Term Performance and Comparison with Benchmarks
Over the past year, Polylink Polymers has delivered a total return of -46.31%, a stark contrast to the Sensex’s positive return of 5.21% during the same period. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the previous three annual periods. The 52-week high for the stock was Rs.39.90, indicating that the current price represents a decline of more than 52% from that peak.
Financial Metrics and Valuation
Polylink Polymers’ financial indicators reveal 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, while positive, may not be sufficient to offset other financial pressures.
The company’s ability to service its debt is limited, with an average EBIT to interest ratio of 1.70, suggesting tight coverage of interest expenses. Additionally, the debtors turnover ratio for the half-year period is 5.63 times, indicating the frequency with which the company collects its receivables, which is relatively low compared to industry standards.
Return on Capital Employed (ROCE) is recorded at 4.2%, and the enterprise value to capital employed ratio is 1.4, suggesting a fair valuation relative to the company’s capital base. Despite this, profits have declined by 51.8% over the past year, further weighing on the stock’s performance.
Sector and Shareholding Structure
Operating within the petrochemicals industry, Polylink Polymers faces sector-specific dynamics that influence its performance. The company’s majority shareholding rests with promoters, which may impact strategic decisions and capital allocation. The stock’s market capitalisation grade is 4, indicating a micro-cap or small-cap status relative to larger peers in the sector.
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Summary of Key Concerns
The stock’s recent decline to Rs.18.84 marks a continuation of a downward trajectory that has persisted over several days. The combination of weak long-term financial metrics, including modest ROE and ROCE, limited debt servicing capacity, and declining profits, has contributed to the stock’s underperformance relative to its sector and the broader market.
Trading below all major moving averages, Polylink Polymers currently reflects a subdued market sentiment. The company’s valuation appears fair when compared to peers, but the persistent negative returns and financial pressures remain notable factors for consideration.
Market Environment and Broader Trends
While Polylink Polymers has experienced a significant price decline, the broader market environment remains relatively positive. The Sensex’s proximity to its 52-week high and its position above key moving averages indicate a generally bullish trend for large-cap stocks. Mega-cap companies have led gains, contrasting with the micro-cap status and recent performance of Polylink Polymers.
Conclusion
Polylink Polymers (India) has reached a new 52-week low of Rs.18.84 amid a sustained period of price weakness and underperformance relative to its sector and the broader market. The company’s financial metrics highlight several challenges, including limited profitability and debt servicing capacity, which have influenced its valuation and stock price trajectory. Despite a fair valuation relative to peers, the stock remains below all key moving averages, reflecting ongoing downward momentum in the current market context.
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