Vinayak Polycon International Ltd Falls to 52-Week Low of Rs.22.04

Stock Performance and Market Context

On 6 Feb 2026, Vinayak Polycon International Ltd recorded its lowest price in the last year at Rs.22.04, following three consecutive days of declines. Despite this, the stock showed a modest rebound today, outperforming its packaging sector by 3.57%. However, it remains well 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 Sensex opened flat but gained 0.09% to trade at 83,392.84, just 3.32% shy of its 52-week high of 86,159.02. Mega-cap stocks led the market rally, while Vinayak Polycon’s performance diverged sharply from the broader indices.

Over the last year, the stock has declined by 32.31%, a stark contrast to the Sensex’s 6.83% gain and the BSE500’s 7.37% return. This underperformance highlights the stock’s relative weakness within the packaging sector and the wider market.

Financial Metrics and Fundamental Assessment

Vinayak Polycon International Ltd’s long-term fundamentals remain subdued. The company’s average Return on Capital Employed (ROCE) stands at 5.78%, reflecting limited efficiency in generating returns from its capital base. The most recent half-year ROCE was recorded at 6.57%, the lowest in recent periods, indicating persistent challenges in capital utilisation.

Net sales have grown at an annualised rate of 11.64% over the past five years, while operating profit has increased at a slower pace of 6.19%. This disparity suggests margin pressures and limited operational leverage. The company’s ability to service debt is constrained, with a high Debt to EBITDA ratio of 3.01 times, signalling elevated leverage and potential financial strain.

Quarterly results further underscore the subdued performance, with PBDIT at Rs.0.19 crore and PBT excluding other income at Rs.0.01 crore, both representing the lowest levels recorded in recent quarters. These figures highlight the limited profitability and tight earnings environment facing the company.

Valuation and Comparative Positioning

Despite the weak fundamentals, Vinayak Polycon International Ltd’s valuation metrics suggest some degree of attractiveness. The company’s Enterprise Value to Capital Employed ratio is 1.3, indicating a discount relative to its peers’ historical averages. This valuation gap reflects the market’s cautious stance given the company’s financial profile and recent performance.

Profitability has declined by 8% over the past year, compounding the negative stock returns. The stock’s 52-week high was Rs.41.88, nearly double the current price, emphasising the scale of the decline over the period.

Shareholding and Market Sentiment

The majority shareholding in Vinayak Polycon International Ltd remains with the promoters, reflecting concentrated ownership. The company’s Mojo Score currently stands at 23.0, with a Mojo Grade of Strong Sell as of 19 Dec 2025, an upgrade from the previous Sell rating. This grading reflects the company’s weak long-term fundamentals and subdued growth prospects within the packaging sector.

Market capitalisation grading is low at 4, consistent with the company’s modest size and limited market presence relative to larger peers. The stock’s day change today was positive at 2.20%, but this movement is within a broader context of sustained weakness over the past year.

Summary of Key Data Points

• New 52-week low price: Rs.22.04
• 1-year stock return: -32.31%
• Sensex 1-year return: +6.83%
• Average ROCE (5 years): 5.78%
• Debt to EBITDA ratio: 3.01 times
• Net sales growth (5 years CAGR): 11.64%
• Operating profit growth (5 years CAGR): 6.19%
• PBDIT (quarterly low): Rs.0.19 crore
• PBT excluding other income (quarterly low): Rs.0.01 crore
• Enterprise Value to Capital Employed: 1.3
• Mojo Score: 23.0 (Strong Sell)
• Market Cap Grade: 4

Conclusion

Vinayak Polycon International Ltd’s stock reaching a 52-week low of Rs.22.04 underscores the challenges faced by the company in maintaining growth and profitability amid a competitive packaging sector. The stock’s significant underperformance relative to the Sensex and sector peers reflects ongoing concerns about its financial health and operational efficiency. While valuation metrics indicate some discount relative to peers, the company’s subdued returns on capital and elevated leverage continue to weigh on investor sentiment.

As the stock trades below all major moving averages, it remains in a downtrend despite a slight recovery today. The concentrated promoter ownership and recent Mojo Grade of Strong Sell further highlight the cautious stance adopted by the market towards Vinayak Polycon International Ltd.

Unlock special upgrade rates for a limited period. Start Saving Now →