⚡ At a Glance
Sah Polymers (now Aeroflex Neu Ltd) makes industrial-grade packaging like FIBCs and woven PP bags. But despite being a “Star Export House,” the financials look like a startup that forgot it listed. With ₹129 Cr revenue in FY25, ₹0.2 Cr profit, 0.2% ROE, and a legendary 1,530x P/E, this is either misunderstood genius or a spreadsheet prank.
🎬 1. Introduction – “PE Kya Hota Hai, Sir?”
Some companies brag about their low PE.
Sah Polymers just flipped the script.
At a mind-numbing 1,530x P/E, it proudly stands as the Shaktimaan of valuation anomalies — super slow, but somehow invincible on the charts (stock up 36% in 1 year).
🏭 2. WTF Do They Even Do?
Sah Polymers manufactures:
- Flexible Intermediate Bulk Containers (FIBCs)
- PP Woven Bags
- BOPP Laminated Bags
Think: stuff that carries cement, fertilizer, chemicals. Nothing sexy. Just sweaty sacks.
Clients? Mostly export orders. It’s a Star Export House recognized by GoI.
But here’s the catch — exports aren’t translating into earnings.
📊 3. Financials Overview
FY25 Snapshot:
| Metric | FY25 |
|---|---|
| Revenue | ₹129 Cr |
| Net Profit | ₹0.2 Cr |
| OPM | 3.1% |
| ROE | 0.2% |
| ROCE | 3.1% |
| EPS | ₹0.08 |
- Revenue grew 17% CAGR (3Y)
- But profit crashed 75% YoY
- Net margins? Microscopic
TL;DR: Topline moves, bottomline snoozes.
💸 4. Valuation – Is It Cheap, Meh, or Crack?
- P/E: 1,530 — highest in packaging, maybe all of NSE SME
- P/BV: 3.5 — not obscene, but no justification for earnings
- EV/EBITDA: Practically unusable because EBITDA is… well, ebbing
Valuation is crack-level, unless you’re valuing dreams, not earnings.
🔥 5. What’s Cooking?
Recent updates:
- ✅ Name change to Aeroflex Neu Ltd in July 2025
- ✅ Expansion in authorized share capital
- ✅ Added new management + compliance officer
- ❌ Still no meaningful profit revival
Notable: They’ve had 10 concalls since listing. Which is more than their quarterly profits.
📉 6. Balance Sheet – How Much Debt, How Many Dreams?
| Item | FY25 |
|---|---|
| Equity + Reserves | ₹87 Cr |
| Borrowings | ₹28 Cr |
| Total Assets | ₹128 Cr |
| Cash & Equivalents | Minimal |
| Fixed Assets | ₹55 Cr |
- Debt is moderate, not alarming
- Reserves rising slowly, but not from profits (from IPO capital mostly)
💵 7. Cash Flow – Sab Number Game Hai
FY25 Cash Flow
- CFO: ₹8 Cr
- CFI: -₹6 Cr (Capex spending continues)
- CFF: -₹5 Cr (loan repayments)
Net: -₹3 Cr
They generate some cash but burn it fast.
📏 8. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 0.23% |
| ROCE | 3.06% |
| OPM | 3.1% |
| Inventory Days | 166 (!!) |
| Cash Conversion Cycle | 189 Days |
| Interest Coverage | <2 |
Verdict: Stressy AF. You hold inventory longer than people hold grudges.
💰 9. P&L Breakdown – Show Me the Money
| Year | Sales | Net Profit | OPM |
|---|---|---|---|
| FY22 | ₹80 Cr | ₹4 Cr | 9% |
| FY23 | ₹95 Cr | ₹4 Cr | 8% |
| FY24 | ₹109 Cr | ₹1 Cr | 5% |
| FY25 | ₹129 Cr | ₹0.2 Cr | 3% |
Declining OPM, declining profits. IPO to decay in real-time.
🆚 10. Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM | Mcap |
|---|---|---|---|---|
| TCPL Packaging | 24x | 23.8% | 16.9% | ₹3,333 Cr |
| AGI Greenpac | 16x | 16.4% | 24.3% | ₹5,239 Cr |
| UFlex | 19x | 3.1% | 11.1% | ₹4,332 Cr |
| Sah Polymers | 1,530x | 0.2% | 3.1% | ₹306 Cr |
No competition is even close to Sah’s P/E — for all the wrong reasons.
👨👩👧 11. Misc – Shareholding & Promoters
| Holder | % |
|---|---|
| Promoters | 60.46% (Stable) |
| FIIs | 3.63% (Shrinking) |
| Public | 35.87% (Retail heavy) |
No DII love, FII pulling out — only retail energy is holding this up.
🧑⚖️ 12. EduInvesting Verdict™
Sah Polymers has:
✅ Export recognition
✅ Decent sales growth
❌ Profit erosion
❌ Highest P/E in its sector
❌ Terrible return ratios
🎯 Fair Value Range (FV)
Based on:
- ₹4 Cr normalized PAT (best-case from FY22-FY23)
- 15–20x realistic PE for packaging sector
➡️ FV = ₹60 to ₹80 per share
At ₹119? You’re buying 10% real, 90% hope.
✍️ Written by Prashant | 📅 July 11, 2025
