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POLYCHEM LTD. (POLYCHEM) Fair Value & Analysis

Basic Materials · IN · Market cap ₹798M

PL POLYCHEM LTD. POLYCHEM · BSE
Price₹1,869
Fair Value₹2,602
Upside+39.2%
Quality55/100
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Expensive Growth
Highly profitable · 37.1% net margin
negative free cash flow
Ranks above peers (8/12)
Moderate moat 63/100
Evidence: Medium Range ₹1,912 – ₹3,708 Share as image

Fair value as of: Aug 13, 2026

From 14 valuation models · updated 6 days ago

Fair value updated Aug 13, 2026, revised from ₹2,651 to ₹2,602 (−1.8%) since Aug 12, 2026.

A solid business, screening 39% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (₹1,912). The market is more pessimistic than our downside scenario.
  • Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (₹1,912 to ₹3,708) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹3,532 ₹424.31 Fair Value ₹2,602 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹424.31 – ₹3,532 · fair‑value band ₹1,912 – ₹3,708 · the ₹1,869 price screens below the ₹2,602 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

POLYCHEM LTD. (POLYCHEM) currently trades at ₹1,869, while our model-based Fair Value estimate is ₹2,602, implying the stock looks roughly 39.2% undervalued today. The Quality Score stands at 55/100 (solid quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, POLYCHEM LTD. generated revenue of ₹440M at a net margin of 37.1%. Revenue grew 12.8% year over year. It earns a return on equity of 46.6%. The stock trades on a trailing P/E of 4.6. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹1,912 (bear case) to ₹3,708 (bull case); at ₹1,869, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 37% below its 52-week high and 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -68% fair-value upside, at 39%, POLYCHEM screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Residual Income ₹2,304 ₹3,144 ₹15,257 76
Growth-Adj P/E ₹3,962 ₹5,660 ₹7,358 68
ROIC Compounder ₹613.84 ₹690.71 ₹754.77 67
All 14 models by family
DCF Models
Owner Earnings ₹2,928 ₹3,931 ₹5,173 31
Earnings-Based
Graham-Dodd ₹2,746 ₹6,461 ₹8,316 54
PEG = 1.0 ₹1,111 ₹1,587 ₹2,063 46
EPV ₹613.84 ₹690.71 ₹754.77 59
Multiples
P/E Multiple ₹5,149 ₹6,866 ₹8,582 63
P/S Multiple ₹1,193 ₹1,590 ₹1,988 58
P/B Multiple ₹3,334 ₹4,446 ₹5,557 55
EV/EBIT ₹971.49 ₹1,279 ₹1,586 53
EV/EBITDA ₹870.22 ₹1,144 ₹1,417 54
EV/Revenue ₹848.65 ₹1,191 ₹1,533 43
Asset-Based
NCAV (Graham) ₹740.96 ₹992.89 ₹1,482 50
Economic Profit
Residual Income ₹2,304 ₹3,144 ₹15,257 76
ROIC Compounder ₹613.84 ₹690.71 ₹754.77 67
Growth Earnings
Growth-Adj P/E ₹3,962 ₹5,660 ₹7,358 68

Widest divergence: Growth Earnings (₹5,660) versus Economic Profit (₹690.71). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹440M
Revenue growth (YoY) +12.8%
Net margin 37.1%
Return on equity 46.6%
Free cash flow −₹49.4M FY2025
P/E ratio 4.6
More key figures
Operating margin 6.4%
EPS (TTM) ₹403.87
EPS growth (YoY) +1,446%

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 54 · Market factors (momentum, volatility) 35

Profitability 74
Margins and returns on capital today
Quality Growth 59
Are margins and returns improving?
Cashflow 4
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 20
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Polychem Limited, together with its subsidiary, Gujarat Poly Electronics Limited, engages in the specialty chemicals and property development businesses in India and internationally. It operates in three segments: Property Development, Specialty Chemicals, and Manufacturing and Trading in Capacitors segments.

Full company description

Polychem Limited, together with its subsidiary, Gujarat Poly Electronics Limited, engages in the specialty chemicals and property development businesses in India and internationally. It operates in three segments: Property Development, Specialty Chemicals, 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, markets, and sells ceramic capacitors; and develops properties. The company also exports its products to the United Kingdom, the United States, the Netherlands, Germany, Japan, and Hungary. Polychem Limited was incorporated in 1955 and is headquartered in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

POLYCHEM LTD. reported revenue of ₹428M in FY2025 versus ₹358M in FY2021, a compound +4.6%/yr. Reported net income was ₹163M in FY2025, compounding +138.3%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
₹428M
Latest YoY
+2.8%
Avg. growth/yr (3Y) 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.
−5.8%
Avg. growth/yr (5Y) 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.
+11.7%
Avg. growth/yr (9Y) 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.
+4.6%
Revenue +4.6%/yr
FY21 ₹358M
FY22 ₹512M
FY23 ₹539M
FY24 ₹417M
FY25 ₹428M
Net income +138.3%/yr
FY21 ₹5.1M
FY22 ₹72.3M
FY23 ₹72.0M
FY24 ₹28.3M
FY25 ₹163M

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Cite: Fair Value Calculator (2026). "POLYCHEM LTD. Fair Value". https://www.fairvalue-calculator.com/stock/POLYCHEM

Peer Group

Specialty Chemicals · 675 stocks

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.

Quality Score 55 · Above median
Fair Value upside +39% · Top 25%
Return on equity (TTM) 47% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) 37% · Top 25%
Operating margin (TTM) 6% · Below median
Revenue growth 13% · Above median
Dividend yield (TTM) 1.0% · Below median

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 4.6× · Cheaper than 75% of peers
P/B 1.33× · Cheaper than median
P/S (TTM) 1.82× · Pricier than median
EV/EBITDA 17.6× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE86 · sector 0
FUTURE64 · sector 19
PAST100 · sector 23
HEALTH0 · sector 95
DIVIDEND20 · sector 30

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Linde plc LIN $479.43 $222.03 -54%
Wanhua Chemical Group 600309 ¥75.06 ¥68.03 -9%
Asian Paints Limited ASIANPAINT ₹2,630 ₹696.23 -74%
Solar Industries India Limited SOLARINDS ₹18,730 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,702 ₹351.84 -79%
PT Chandra Asri Pacific Tbk TPIA 2,160 IDR 2,322 IDR +8%
Berger Paints India Limited BERGEPAINT ₹541.00 ₹156.35 -71%
Gujarat Fluorochemicals Limited FLUOROCHEM ₹4,680 ₹724.88 -85%
Himadri Speciality Chemical Limited HSCL ₹778.15 ₹248.63 -68%
Enaex S.A ENAEX 25,050 CLP 23,574 CLP -6%

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Frequently asked questions

Is POLYCHEM LTD. (POLYCHEM) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹2,602 versus a price of ₹1,869, about +39% (undervalued).
What is the fair value of POLYCHEM?
Our model-based fair value for POLYCHEM LTD. is ₹2,602 (as of Aug 13, 2026), built from audited fundamentals. The current price: ₹1,869.
What is the quality score of POLYCHEM?
POLYCHEM LTD. has a Quality Score of 55/100. 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 revenue of POLYCHEM LTD. (POLYCHEM)?
POLYCHEM LTD. reported trailing-twelve-month revenue of about ₹440M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of POLYCHEM?
The net profit margin of POLYCHEM LTD. is about 37.1%, meaning it keeps roughly 37.1% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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