Polychem Limited (506605) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Polychem Limited ₹2,439, price ₹1,832, upside +33.2%, quality 49 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range ₹437.91 – ₹3,532 · fair‑value band ₹1,677 – ₹3,524 · the ₹1,832 price screens below the ₹2,439 fair value. Dashed = 300-day average. As of Sep 24, 2026.
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Polychem Limited engages in the specialty chemicals and property development businesses in India. It operates through Specialty chemicals, Property Development, and Manufacturing and Trading in Capacitors segments.
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Polychem Limited engages in the specialty chemicals and property development businesses in India. It operates through Specialty chemicals, Property Development, and Manufacturing and Trading in Capacitors segments. The company offers cross linked polystyrenes, low molecular weight polystyrenes, styrene ethyl acrylate co-polymers, and styrene butyl acrylate co-polymers. It also manufactures, outsources, and sells ceramic capacitors. The company exports its products to the United Kingdom, the United States, the Netherlands, Germany, Japan, and Hungary. Polychem Limited was incorporated in 1955 and is based in Mumbai, India.
Stock analysis
Polychem Limited (506605) currently trades at ₹1,832, while our model-based Fair Value estimate is ₹2,439, implying the stock looks roughly 24.9% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹6,334 per share, and 8 of the 17 models we run sit above the ₹1,832 price.
Bear case: the Dividend Discount group reads lowest at ₹290.80, and 9 of the 17 models stay below the price. Evidence for this calculation is medium.
Scenario range: ₹1,677 (bear) to ₹3,524 (bull), the price of ₹1,832 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 49/100 (below-average quality), in the Basic Materials sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Polychem Limited reported revenue of ₹428M in FY2026 versus ₹358M in FY2022, a compound +4.6%/yr. Reported net income was ₹163M in FY2026, compounding +138.3%/yr from FY2022. FY2022 was a trough year, so the rate overstates the trend.
Key figures
Market cap ₹200M (≈ $2.1M) · P/E ratio 13.4 · P/S ratio 5.09 · EPS (TTM) ₹50.40 · Dividend yield 2.8% · Net margin 38.1% · Return on assets (EBIT) 7.2% · Operating margin 5.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 25% below its 52-week high and at its 52-week low, currently below its 200-day average.
For context, the median of 10 Basic Materials peers we cover trades at −39% fair-value upside, at 33%, 506605 screens cheaper than that median.
Fair Value models
Bear ₹1,677Fair Value ₹2,439Bull ₹3,524
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹19.31 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+2.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−5.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.7%
Start year 2021 (pandemic). Over 10 years: +13.0% a year
Revenue growth 12 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.3%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
≈ +19.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.0%
Dividend (yield on the price)2.8%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.81.6% vs 35.1%, picking up
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−1% → 8%
Start year 2021 (pandemic)
⚠ Rate on operating basis: 2026 sits 127% above its own trend.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Chemicals · 699 stocks
Beats the industry median on 8/12 measures
Overall it ranks above its industry peers.
Valuation
Quality Score49 · Below median
Fair Value upside+27.6% · Top 25%
Profitability
Return on assets0.0% · Bottom 25%
Net margin (TTM)6.8% · Above median
Operating margin (TTM)5.2% · Below median
Growth and dividend
Revenue growth−71.3% · Bottom 25%
Dividend yield (TTM)2.8% · Top 25%
Balance sheet
Debt / equity0.01× · Below median
Valuation Multiplesvs Specialty Chemicals median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Polychem Limited Fair Value". https://www.fairvalue-calculator.com/stock/506605
Frequently asked questions
Is Polychem Limited (506605) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of ₹2,439 versus a price of ₹1,832, about +33% upside (undervalued).
What is the fair value of 506605?
Our model-based fair value for Polychem Limited is ₹2,439 (as of Sep 24, 2026), built from audited fundamentals. The current price: ₹1,832.
What is the quality score of 506605?
Polychem Limited has a Quality Score of 49/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Polychem Limited (506605)?
Our model-based price target is the fair value of ₹2,439 (as of Sep 24, 2026) from 17 valuation models. Cautious scenario ₹1,677, optimistic scenario ₹3,524. It is a calculation from audited fundamentals, not an analyst target.
What is the Polychem Limited stock forecast for 2026?
Our models put fair value at ₹2,439, about +33% upside versus a price of ₹1,832 (undervalued). Cautious scenario ₹1,677, optimistic scenario ₹3,524. The calculation is refreshed regularly with new filings.
What is the revenue of Polychem Limited (506605)?
Polychem Limited reported trailing-twelve-month revenue of about ₹301M (latest available figure, as of Sep 24, 2026).
Does Polychem Limited pay a dividend?
Polychem Limited currently shows a dividend yield of about 2.84% relative to its recent price (as of Sep 24, 2026).
What is the intrinsic value of Polychem Limited (506605)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Polychem Limited it is ₹2,439 per share (as of Sep 24, 2026), against a price of ₹1,832. It is the blended result of 17 valuation models (cash flow, earnings, asset, dividend).
Is Polychem Limited stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 506605 trades below its calculated fair value: price ₹1,832, fair value ₹2,439, a gap of about +33% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 506605?
No. The price is what the market pays today (₹1,832); the fair value is what the company's own numbers justify (₹2,439). For Polychem Limited the two are ₹607.27 per share apart. That gap is exactly why we show both numbers side by side.
How much is Polychem Limited worth?
The market values Polychem Limited at about ₹200M (market capitalisation, as of Sep 24, 2026). Per share that is ₹1,832; our models calculate a fair value of ₹2,439 per share.
What do the bullish and bearish scenarios say about 506605?
Our models span a range for Polychem Limited: cautious scenario ₹1,677, base ₹2,439, optimistic ₹3,524 per share (as of Sep 24, 2026, price ₹1,832). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 506605?
Polychem Limited trades at a price-to-earnings ratio of 13.4 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹2,439 is built from several models across several years. Other multiples: P/B 0.3, P/S 0.7, EV/EBITDA 9.2.
How solid is the balance sheet of Polychem Limited (506605)?
Balance-sheet figures for Polychem Limited (as of Sep 24, 2026): debt of 0.01 per unit of equity. They feed the Quality Score of 49/100, which measures business quality independently of the share price.
How far is 506605 from its 52-week high?
Polychem Limited trades at ₹1,832, about 25% below its 52-week high of ₹2,433 and at the low of ₹1,832 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹2,439 is for.
Which stocks are comparable to Polychem Limited?
From the same area (Basic Materials) we also value Linde plc, The Sherwin-Williams Company, Ecolab Inc, Air Products and Chemicals, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Polychem Limited stock attractive at the current price?
The data as of Sep 24, 2026: price ₹1,832, calculated fair value ₹2,439 (+33%), Quality Score 49/100, from 17 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 506605 calculated?
We run Polychem Limited through 17 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹2,439, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Polychem Limited currently trades 25 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Polychem Limited (506605)?
The closing price on Oct 1, 2026 was ₹1,832. Our model-based fair value is ₹2,439, about +33% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Polychem Limited right now?
Solid quality (49/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (₹1,677 to ₹3,524) leaves room in how you read the outcome.
Key figures of Polychem Limited
How large is the market capitalisation of Polychem Limited (506605)?
The market capitalisation of Polychem Limited is ₹200M (≈ $2.1M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Polychem Limited (506605)?
The price-to-sales ratio of Polychem Limited is 5.09 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Polychem Limited (506605)?
Earnings per share at Polychem Limited are ₹50.40 (price ÷ EPS = P/E 13.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Polychem Limited (506605)?
The dividend yield of Polychem Limited is 2.8% (payout 103%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Polychem Limited (506605)?
The net margin of Polychem Limited is 38.1% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the EBIT return on assets of Polychem Limited (506605)?
On an EBIT basis the return on assets of Polychem Limited is 7.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Polychem Limited (506605)?
The operating margin of Polychem Limited is 5.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Polychem Limited (506605)?
Revenue at Polychem Limited is growing −71.3% versus a year earlier (3y avg −5.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How much free cash flow does Polychem Limited (506605) generate?
The free cash flow of Polychem Limited is −₹49.4M (fiscal year 2026). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
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