Pearl Polymers Limited (PEARLPOLY) AI Stock Analysis

• Market Cap: ₹324.41M
• Dividend Yield: N/A
• Average Volume (3M): 2.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 64
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Packaging & Containers
• EPS (TTM): -1.15
• Shares Outstanding: 16,834,932
• 10 Day Avg. Volume: 3,097
• 30 Day Avg. Volume: 2,014
• PEG Ratio: 0.01
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 2.08
• P/FCF Ratio: -8.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ₹18.50 ▼(-19.57% Downside)

The score is weighed down primarily by weak financial performance—loss-making operations and negative operating/free cash flow—despite a strong, debt-free balance sheet. Technicals also remain soft with the stock below key moving averages and a negative MACD, while valuation signals are constrained by a negative P/E tied to current losses.

Positive Factors

Debt-free balance sheet

A debt-free capital structure materially reduces solvency and refinancing risk, giving the company durable financial flexibility. Over 2–6 months this supports the ability to absorb operating losses, fund working capital or opportunistic investments without interest burden or covenant pressure.

Revenue growth and margin improvement

Sustained revenue growth paired with meaningful gross margin expansion indicates either better pricing, improved mix, or lower input costs. If structural, these trends can underpin a path back to profitability and higher cash conversion over the medium term, improving earnings durability.

Conservative capital structure

A large equity base relative to assets and low leverage provide a conservative funding profile. This perennial strength increases strategic optionality—lower financing costs and capacity to pursue reinvestment or restructurings—supporting operational recovery without immediate external debt.

Negative Factors

Loss-making operations

Deep negative operating and EBITDA margins signal structural profitability problems: core operations are not generating sustainable earnings. Persisting losses erode retained capital, hinder reinvestment, and raise the likelihood of restructuring or capital raises absent a credible multi-quarter turnaround.

Weak cash generation

Multi-year negative operating and free cash flow means the business is consuming cash rather than self-funding growth or capex. This persistent cash burn increases reliance on reserves or external financing, constraining strategic choices and elevating liquidity risk despite zero reported debt.

Volatile results and ROE erosion

Large swings in multi-year results and a slide into negative ROE reflect inconsistent earnings quality and value erosion. This volatility undermines forecasting, heightens execution risk for management plans, and makes it harder to restore investor confidence or secure long-term capital on favorable terms.

Pearl Polymers Limited Business Overview & Revenue Model

Company Description

Pearl Polymers Limited manufactures and trades in PET jars and bottles in India and internationally. The company offers jars and bottles for kitchen, home, and office use, as well as containers; and stainless steel and copper bottles. It also provides its products online. The company's packaging solutions are used for agro chemical, confectionery, cosmetics, food, liquor, and pharmaceutical products. Pearl Polymers Limited was incorporated in 1971 and is headquartered in New Delhi, India.

How the Company Makes Money

Pearl Polymers Limited Financial Statement Overview

Summary

Despite revenue growth and improved gross margin, FY2025 profitability deteriorated into a sizable net loss with deeply negative operating/EBITDA margins. Cash generation is also weak with negative operating and free cash flow in FY2024–FY2025, partially offset by a strong, debt-free balance sheet that lowers solvency risk.

Income Statement

Revenue improved in FY2025 (up ~5% YoY) and gross margin expanded meaningfully versus FY2024, signaling better pricing/mix or input-cost relief. However, profitability deteriorated sharply: FY2025 posted a sizable net loss with deeply negative operating and EBITDA margins, reversing FY2024’s modest profit. Longer-term results are volatile (large swings across years), which reduces confidence in earnings quality and sustainability.

Balance Sheet

The balance sheet is a clear strength: FY2025 shows no debt and a large equity base relative to assets, indicating low financial leverage and reduced solvency risk. That said, returns on equity turned negative in FY2025, reflecting weak profitability despite the conservative capital structure, and equity has come down from prior years, suggesting value erosion during loss periods.

Cash Flow

Cash generation is weak: operating cash flow and free cash flow were negative in FY2024 and FY2025, implying the business is consuming cash rather than funding itself internally. While free cash flow was negative alongside a net loss in FY2025 (and less negative than FY2024), the multi-year pattern shows material volatility, including a one-off very strong year (FY2022) that has not been sustained.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	215.62M	219.72M	161.50M	171.24M	139.92M	1.12B
Gross Profit	99.29M	102.25M	62.28M	45.90M	-61.66M	446.50M
EBITDA	-31.30M	-47.30M	9.84M	-74.00M	288.00M	-10.38M
Net Income	-35.18M	-51.20M	6.54M	-81.73M	218.44M	-105.76M
Balance Sheet
Total Assets	0.00	408.50M	451.85M	452.48M	563.43M	911.28M
Cash, Cash Equivalents and Short-Term Investments	276.27M	276.27M	315.69M	321.30M	371.75M	23.31M
Total Debt	0.00	0.00	995.00K	2.28M	4.19M	283.17M
Total Liabilities	-334.00M	74.50M	66.32M	72.09M	102.61M	670.96M
Stockholders Equity	334.00M	334.00M	385.53M	380.39M	460.82M	240.32M
Cash Flow
Free Cash Flow	0.00	-52.77M	-76.60M	-54.20M	274.56M	14.44M
Operating Cash Flow	0.00	-48.24M	-70.90M	-47.84M	289.05M	23.29M
Investing Cash Flow	0.00	33.24M	83.83M	-14.10M	51.28M	17.89M
Financing Cash Flow	0.00	-1.55M	-1.83M	-2.58M	-282.18M	-22.82M

Pearl Polymers Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAHYADRI	65 Neutral	₹2.75B	14.84	―	0.40%	1.59%	-15.40%
SAH	63 Neutral	₹1.80B	122.00	―	―	7.47%	104.95%
KHAICHEM	62 Neutral	₹6.29B	8.74	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MANORG	54 Neutral	₹3.52B	14.54	―	―	22.53%	237.55%
PEARLPOLY	44 Neutral	₹324.41M	-5.70	―	―	―	―

Pearl Polymers Limited Corporate Events

Pearl Polymers Opens Special Window for Re‑lodgement of Physical Share Transfers

Pearl Polymers Limited has notified the Indian stock exchanges that it has published newspaper advertisements in Financial Express and Hari Bhoomi announcing the opening of a special window for shareholders to re-lodge transfer requests for physical share certificates. The move is in line with a recent Securities and Exchange Board of India circular and is aimed at giving holders of physical shares an additional opportunity to regularise pending transfer requests, reinforcing compliance with evolving capital market regulations and potentially easing the transition of legacy physical holdings for investors.