Sah Polymers Ltd. (SAH) AI Stock Analysis

• Market Cap: ₹1.89B
• Dividend Yield: N/A
• Average Volume (3M): 12.71K
• Price to Earnings (P/E): 123.5
• Beta (1Y): 0.79
• Revenue Growth: 7.47%
• EPS Growth: 104.95%
• Country: US
• Employees: 132
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Packaging & Containers
• EPS (TTM): 0.40
• Shares Outstanding: 25,796,000
• 10 Day Avg. Volume: 16,693
• 30 Day Avg. Volume: 12,711
• PEG Ratio: -12.00
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 1.41
• P/FCF Ratio: 98.63
• 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: 63 Neutral
• Price Target: ₹75.00 ▲(0.83% Upside)

Sah Polymers Ltd. has a solid financial foundation with strong revenue growth and stable equity, but faces challenges with profitability and cash flow volatility. The technical indicators suggest bearish momentum, and the high P/E ratio indicates overvaluation, limiting the stock's attractiveness.

Positive Factors

Revenue Growth Trend

Sustained revenue growth (2021–2025) signals expanding market penetration across packaging, agriculture and construction. Durable top-line expansion supports scale economies, funds R&D and distribution, and underpins medium-term capacity investments and competitive positioning.

Balance Sheet Strength

An increasing equity base and significant equity financing provide a durable buffer against downturns, enabling reinvestment and capex without immediate reliance on external funding. Manageable debt-to-equity enhances financial flexibility and credit access over the next several quarters.

Gross and Operating Margin Resilience

Healthy gross margins and stable EBIT/EBITDA reflect manufacturing efficiency and cost control in production. This structural margin strength supports pricing flexibility and long-term competitiveness, helping absorb input cost swings and fund product development.

Negative Factors

Low Net Profit Margins

Persistently low net margins constrain retained earnings and return on equity, making growth less accretive and increasing sensitivity to SG&A, financing costs or raw material inflation. Improving bottom-line conversion is needed for sustainable shareholder value creation.

Cash Flow Volatility

Inconsistent operating cash generation undermines liquidity planning and may force external financing for working capital or capex. Even with improved free cash flow in 2025, unreliable cash conversion increases refinancing risk and limits strategic flexibility over months ahead.

Rising Leverage Risk

An uptick in total debt, despite manageable D/E, heightens financial risk if earnings or cash conversion weaken. Higher leverage increases interest burden and refinancing exposure, reducing the firm's ability to invest opportunistically or weather cost shocks over the medium term.

Sah Polymers Ltd. Business Overview & Revenue Model

Company Description

Sah Polymers Limited manufactures and sells polypropylene (PP) high density polyethylene (HDPE) woven bags, BOPP laminated bags, flexible intermediate bulk containers (FIBCs), and HDPE/PP woven fabrics/sacks in India. It serves agro chemicals, pharmaceuticals, cattle feed, cement, chemical, food and beverages, metal, mineral, textile, tire, paper, and fertilizer industries. The company exports its products to Algeria, Togo, Ghana, Poland, Portugal, France, Italy, Dominican Republic, the United States, Australia, the United Arab Emirates, Palestine, the United Kingdom, Ireland, Belgium, Burkina Faso, Senegal, Guinea, Tanzania, and Cyprus. Sah Polymers Limited was formerly known as Peacock Continental Limited and changed its name to Sah Polymers Limited in July 1998. The company was incorporated in 1992 and is based in Udaipur, India. Sah Polymers Limited is a subsidiary of Sat Industries Limited.

How the Company Makes Money

Sah Polymers Ltd. generates revenue through the production and sale of its plastic products across various sectors. Key revenue streams include direct sales to manufacturers and retailers in the packaging industry, as well as contracts with agricultural firms for the supply of plastic films and sheets used in crop protection and greenhouse applications. The company also earns income through partnerships with distributors and wholesalers, expanding its market reach. Additionally, Sah Polymers invests in research and development to innovate and improve product offerings, which helps maintain a competitive edge and attract new customers, further contributing to its earnings.

Sah Polymers Ltd. Financial Statement Overview

Summary

Sah Polymers Ltd. shows strong revenue growth and a stable equity base, but faces challenges with low net profit margins and cash flow volatility. The company manages its debt well but needs to improve cash conversion and profitability.

Income Statement

Sah Polymers Ltd. has shown a strong revenue growth trajectory over the years, with notable increases in total revenue from 2021 to 2025. The gross profit margin has been healthy, indicating effective cost management in production. However, net profit margins have been relatively low, which suggests challenges in managing other operating expenses or financial costs. The EBIT and EBITDA margins indicate a stable operational efficiency, although there was a dip in EBITDA margin in 2025 due to increased other expenses.

Balance Sheet

The company's balance sheet reflects a stable financial position with an increasing stockholders' equity trend, signifying retained earnings and potential reinvestment into the business. The debt-to-equity ratio has been manageable, although an increase in total debt raises potential leverage risk. The equity ratio shows that the company has maintained a significant proportion of its financing through equity, which is a positive indicator of financial stability.

Cash Flow

Cash flow from operations has fluctuated significantly, indicating volatility in cash generation from core business activities. The free cash flow has improved in recent years, with positive growth in 2025, suggesting better capital expenditure management. However, the operating cash flow to net income ratio highlights inconsistencies in converting earnings into cash, which could be a concern for liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.29B	1.29B	1.09B	953.99M	805.11M	545.81M
Gross Profit	487.14M	543.68M	318.41M	380.50M	238.80M	159.89M
EBITDA	49.79M	40.65M	69.30M	88.68M	79.21M	35.41M
Net Income	2.02M	2.02M	7.97M	34.15M	42.03M	12.72M
Balance Sheet
Total Assets	1.28B	1.28B	1.31B	1.26B	686.67M	405.79M
Cash, Cash Equivalents and Short-Term Investments	45.41M	45.41M	73.38M	215.83M	18.98M	19.43M
Total Debt	282.97M	282.97M	305.92M	250.48M	305.38M	137.92M
Total Liabilities	404.78M	404.78M	444.29M	385.77M	420.19M	204.91M
Stockholders Equity	872.43M	872.43M	839.91M	875.82M	240.47M	200.88M
Cash Flow
Free Cash Flow	0.00	18.45M	-55.88M	-470.99M	-85.61M	-9.80M
Operating Cash Flow	0.00	75.58M	1.91M	-169.84M	-7.92M	13.89M
Investing Cash Flow	0.00	-55.16M	-45.14M	-240.06M	-107.94M	-23.31M
Financing Cash Flow	0.00	-53.98M	-23.71M	456.06M	111.11M	8.57M

Sah Polymers Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SAH, the sentiment is Negative. The current price of 74.38 is above the 20-day moving average (MA) of 73.23, below the 50-day MA of 75.39, and below the 200-day MA of 93.99, indicating a bearish trend. The MACD of -1.59 indicates Positive momentum. The RSI at 41.52 is Neutral, neither overbought nor oversold. The STOCH value of 21.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SAH.

Sah Polymers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAH	63 Neutral	₹1.89B	123.52	―	―	7.47%	104.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TOKYOPLAST	58 Neutral	₹935.89M	85.84	―	―	9.27%	43.14%
MCL	53 Neutral	₹2.41B	71.61	―	―	119.41%	-35.45%
FLEXITUFF	40 Underperform	₹356.46M	-0.57	―	―	-67.01%	-140.84%