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Polychem Ltd

NSE: POLYCHEM BSE: 506605

2239.10

(-2.03%)

Tue, 03 Mar 2026, 00:16 pm

Polychem Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (32.8x coverage).
  • Polychem's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Polychem has only been paying a dividend for 4 years, and since then there has been no growth.
  • Polychem has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Polychem's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • Polychem is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Polychem is profitable, therefore cash runway is not a concern.
  • Polychem is profitable, therefore cash runway is not a concern.
  • Polychem has no debt, it does not need to be covered by operating cash flow.
  • Polychem has no debt, it does not need to be covered by short term assets.
  • Polychem's cash and other short term assets cover its long term commitments.
  • Polychem has not taken on any debt in the past 5 years.
  • Polychem has no debt, therefore coverage of interest payments is not a concern.
  • Polychem has no debt.
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Polychem board of directors is about average.
  • Parthiv's remuneration is about average for companies of similar size in India.
  • The average tenure for the Polychem management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

  • Parthiv's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.

misc

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Pros

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    Cons

    • Polychem is not covered by any analysts.
    • Polychem has significant price volatility in the past 3 months.

    past

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    Pros

    • Polychem has delivered over 20% year on year earnings growth in the past 5 years.
    • Polychem used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.
    • Polychem has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
    • Polychem's earnings growth has exceeded the IN Chemicals industry average in the past year (18.7% vs 9.1%).
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    Cons

    • Polychem's 1-year earnings growth is less than its 5-year average (18.7% vs 40.9%)
    • Polychem has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • Polychem's share price is below the future cash flow value, and at a moderate discount (> 20%).
    • Polychem's share price is below the future cash flow value, and at a substantial discount (> 40%).
    • Polychem is good value based on assets compared to the IN Chemicals industry average.
    • Polychem is good value based on earnings compared to the IN Chemicals industry average.
    • Polychem is good value based on earnings compared to the India market.
    • 506605 outperformed the Chemicals industry which returned 2.2% over the past year.
    • 506605 outperformed the Market in India which returned -14.5% over the past year.
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    Cons

    • BSE:506605 is flat (0%) underperforming the Chemicals industry which returned 6.9% over the past month.
    • BSE:506605 is flat (0%) underperforming the market in India which returned 8% over the past month.

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    Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800