Company Update - Press Release / Media Release
Deal
Deal value₹100 Cr
Deal vs businessOrder book of ₹200+ Cr is ~0.76x TTM revenue; Capex plan of ₹100 Cr is ~0.20x market cap and ~0.77x net worth
Size vs own revenue0.76×
Execution period1.5 yr
Fundamental gradeA
AI projections
Revenue uplift (yr1 / steady)22.0% / 45.0%
EPS uplift50.0%
Upside base / bull / bear65.0% / 110.0% / -25.0%
Horizon18-36 months
Realized market record
Entry — next-day open (13 Aug 2026)₹450.0
Latest close (16 Sep 2026)₹483.55
Return since+7.5%
α vs Smallcap 250+10.2%
Positives
- Q1 FY27 net profit surged 35.4% YoY to ₹8.86 Cr with EBITDA margins expanding 317 bps to 23.07%.
- Record order book of ₹200+ Cr provides strong top-line visibility (~76% of TTM revenue).
- Extrusion capacity expanded by 15% to 27,600 MTPA with a multi-year ₹100 Cr capex roadmap planned.
- Superior return ratios (ROCE 26.0%) and healthy promoter holding at 67.75%.
- CRISIL credit rating upgraded to BBB+/Stable, reflecting debt reduction capacity and margin durability.
Risks
- Raw material price volatility in polymer resins (PVC/polycarbonate) tied to crude oil prices.
- Working capital drag from executing large real estate and institutional UPVC orders.
- Cyclical slowdown risks in Indian real estate construction and housing market.
Full AI brief
Dhabriya Polywood Ltd (538715) - Investment Analysis
1. Executive Summary
Dhabriya Polywood reported strong Q1 FY27 financial performance with PAT rising 35.4% YoY to ₹8.86 Cr and EBITDA margins expanding to 23.07%. The announcement of an all-time high order book of ₹200+ Cr (~76% of TTM revenue) alongside a ₹100 Cr multi-year capex plan marks a key growth catalyst. Coupled with an attractive current P/E of 16.5x (vs peer median 17.5x) and high ROCE of 26%, the stock qualifies as a STRONG CANDIDATE for multi-year capital appreciation.
2. Financial & Quality Metrics
- Trailing Revenue / PAT: ₹264 Cr / ₹30 Cr
- Q1 FY27 Metrics: Revenue ₹68.3 Cr (+10.2% YoY), PAT ₹8.86 Cr (+35.4% YoY), OPM 23.07%
- Return Metrics: ROCE 26.0%, NPM 11.36%
- Balance Sheet Strength: Net Worth ₹130 Cr, Debt ₹76 Cr (D/E 0.58), Credit Rating CRISIL BBB+/Stable
- Promoter Holding: 67.75% (Stable)
3. Ramp-Aware Catalyst & Execution Math
- Order Book: ₹200+ Cr (~0.76x TTM Revenue). Typical execution cycle for UPVC / building profiles is 12-18 months.
- Year-1 Revenue Uplift: Expected revenue for FY27 estimated at ₹320 Cr (+21% growth over FY26) driven by capacity upgrade to 27,600 MTPA (+15%).
- Steady-State Impact: With the ₹100 Cr capex plan unfolding over 3 years, capacity could double, supporting a steady-state revenue potential of ₹400-450 Cr with PAT margins around 12%.
- EPS Trajectory: TTM EPS stands at ₹27.84. FY27 EPS estimated at ₹35.5, expanding to ₹45+ by FY28/29.
4. Valuation & Valuation Scenarios (18-36 Month Horizon)
- Base Case (+65%): FY27/28 EPS reaches ₹36.0, valued at 21x P/E -> Target Price ₹756.
- Bull Case (+110%): Accelerated capex execution, EPS reaches ₹44.0, valued at 22x P/E -> Target Price ₹968.
- Bear Case (-25%): Execution delays or raw material margin compression brings EPS to ₹26.0, valued at 13x P/E -> Target Price ₹338.
5. Conclusion
With strong fundamental backing (Grade A), high ROCE (26%), healthy promoter skin-in-the-game, and aggressive capex execution, Dhabriya Polywood presents a highly favorable risk-reward profile.
Analysis as of 2026-08-12 (price ₹458.20) ·
AI research, not investment advice.
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