Recent Price Movement and Market Context
On 21 Nov 2025, Polylink Polymers (India) recorded an intraday low of Rs.19.9, representing a 5.33% drop during the trading session. This decline contributed to a two-day consecutive fall, with the stock losing 7.48% over this period. The day’s performance showed a 2.57% decrease, underperforming the petrochemicals sector by 4.01%. The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In contrast, the broader market displayed relative strength. The Sensex opened lower at 85,347.40, down 285.28 points or 0.33%, but was trading at 85,458.00 by midday, a 0.2% decline. Notably, the Sensex remains close to its 52-week high of 85,801.70, trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish trend in the broader market.
Long-Term Performance and Valuation Metrics
Over the past year, Polylink Polymers (India) has delivered a return of -37.77%, contrasting sharply with the Sensex’s 10.79% gain over the same period. The stock’s 52-week high was Rs.39.9, highlighting the extent of the recent decline. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index over the last three years, one year, and three months.
Financially, the company’s long-term fundamentals show limited strength. The average Return on Equity (ROE) stands at 4.87%, which is modest relative to industry standards. Operating profit has grown at an annual rate of 13.82% over the last five years, indicating some growth but at a pace that may not meet investor expectations for the sector.
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Debt Servicing and Profitability Concerns
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 obligations. This ratio points to potential financial strain in managing debt costs. Additionally, the debtors turnover ratio for the half-year period is 5.63 times, which is relatively low and may indicate slower collection cycles or working capital inefficiencies.
Return on Capital Employed (ROCE) is reported at 4.2%, which, when combined with an enterprise value to capital employed ratio of 1.4, suggests that the stock is valued expensively relative to the returns it generates. However, the valuation remains broadly in line with the average historical valuations of its peers in the petrochemicals sector.
Profitability trends have also shown pressure, with profits falling by 51.8% over the past year. This decline in earnings has contributed to the stock’s negative returns and reflects challenges in maintaining margin levels or revenue growth in the current environment.
Shareholding and Sector Position
Polylink Polymers (India) operates within the petrochemicals industry, a sector that has experienced volatility due to fluctuating raw material costs and global demand shifts. The company’s majority shareholders are promoters, indicating concentrated ownership which may influence strategic decisions and capital allocation.
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Summary of Key Financial Indicators
To summarise, Polylink Polymers (India) has experienced a notable decline in its share price, culminating in a fresh 52-week low of Rs.19.9. The stock’s performance over the last year and longer term has lagged behind major indices and sector averages. Financial metrics such as ROE, ROCE, and EBIT to interest ratio point to subdued profitability and constrained financial flexibility. The company’s valuation aligns with peer averages but is accompanied by falling profits and weak returns.
While the broader market maintains a generally positive trajectory, Polylink Polymers (India) remains under pressure, reflecting both sector-specific and company-specific factors that have influenced investor sentiment and price movement.
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