1. At a Glance
Axel Polymers makes plastic blends with sci-fi names like Dplon and Dpnor—but delivers profits more fragile than your cousin’s startup idea. With Q1 PAT at just ₹4.39 lakh, the company just approved a ₹12.73 Cr preferential issue to keep things rolling. It’s a micro-cap soap opera… and the latest episode has a rights issue, a GST penalty, and a curious EPS jump.
2. Introduction with Hook
Imagine selling high-tech polymers but barely scraping enough profit to fill a petrol tank. Then imagine raising 12.7 Cr by issuing equity at ₹45/share when your last year’s EPS was ₹0.20. Axel’s story is like watching an F1 race where the car’s made of plastic and still trying to overtake Ferrari.
Throw in a GST penalty, a 66% sales drop TTM, and a preferential allotment to unknown investors—chef’s kiss.
3. Business Model (WTF Do They Even Do?)
Axel Polymers makes polymer compounds with brand names that sound like Marvel villains:
- Dplon = Polycarbonate Compounds
- Dpnor = mPPE Compounds
- Dpnyl = Nylon Compounds
- Dplen, Dprex, Dpron = Other fancy names for plastics
Their clients? Industrial manufacturers looking for engineered plastics. Their margins? Best viewed through a magnifying glass.
“Basically, they mix plastic, brand it like shampoo, and hope the engineering crowd bites.”
4. Financials Overview
Q1 FY26 Snapshot:
- Revenue: ₹11.70 Cr
- PAT: ₹0.04 Cr
- OPM: 8.55% (up YoY, but base effect, bro)
- EPS: ₹0.05
TTM Revenue: ₹51 Cr
TTM PAT: ₹0.70 Cr
P/E: 56x
ROE: 1.13%
This is one of those companies where the P&L can fit in a tweet.
5. Valuation
CMP: ₹46
Book Value: ₹17.8 → P/B = 2.59x
PAT (FY25): ₹0.17 Cr
EPS (FY25): ₹0.20
Let’s be bold (someone has to):
- P/E 25x on normalized PAT ₹0.7 Cr:
→ FV MCap = ₹17.5 Cr → FV = ₹20.5/share - EV/EBITDA (15x on EBITDA of ₹4.6 Cr):
→ EV ≈ ₹69 Cr → FV ≈ ₹40–₹45/share
“If you’re buying at 56x earnings, you better hope their Dplon turns into bitcoin.”
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Results: ₹11.70 Cr in sales, ₹4.39 lakh profit
- Preferential Issue: 28.28 lakh shares at ₹45 to raise ₹12.73 Cr
- EGM: Scheduled for Aug 20
- GST Penalty: ₹1 Cr paid “under protest”
More action in one quarter than the last five years combined.
“From plastic blends to boardroom bends—it’s full masala.”
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹8.52 Cr |
| Reserves | ₹6.62 Cr |
| Borrowings | ₹34.08 Cr |
| Total Liabilities | ₹67.42 Cr |
| Fixed Assets | ₹10.18 Cr |
| Net Worth | ₹15.14 Cr |
Net worth < preferential issue? You bet.
Debt has ballooned 5x since FY20. Company runs lean, but debt-heavy.
“Balance sheet’s growing—but mostly on the wrong side.”
8. Cash Flow – Sab Number Game Hai
| Year | Ops CF | Inv CF | Fin CF | Net CF |
|---|---|---|---|---|
| FY23 | ₹5.97 Cr | -₹1.57 Cr | -₹3.57 Cr | ₹0.84 Cr |
| FY24 | ₹3.46 Cr | -₹1.59 Cr | -₹1.92 Cr | -₹0.05 Cr |
| FY25 | -₹3.66 Cr | -₹0.87 Cr | ₹5.69 Cr | ₹1.16 Cr |
In short:
“Ops cash flow turned red, so they raised equity. Classic microcap CPR move.”
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 7.88% |
| ROE | 1.13% |
| P/E | 56x |
| OPM | 9.04% |
| D/E | ~2.25x |
“ROE so low, even your savings account is snickering.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue (Cr) | EBITDA (Cr) | PAT (Cr) |
|---|---|---|---|
| FY23 | ₹127.92 | ₹5.79 | ₹1.56 |
| FY24 | ₹78.09 | ₹3.96 | ₹0.17 |
| FY25 | ₹51.01 | ₹4.61 | ₹0.70 (TTM) |
Massive sales drop. Somewhat stable margins. Classic “volume down, mix up” story? Or just poor demand?
“They’ve cut the cake into smaller slices… but are now selling it as gourmet.”
11. Peer Comparison
| Company | Rev (TTM) | PAT | P/E | ROE |
|---|---|---|---|---|
| Supreme Ind | ₹10,419 Cr | ₹890 Cr | 60.6x | 17.1% |
| Astral | ₹5,832 Cr | ₹519 Cr | 76.3x | 15.3% |
| Shaily Engg | ₹786 Cr | ₹93 Cr | 80.4x | 18.5% |
| Axel Polymers | ₹51 Cr | ₹0.70 Cr | 55.9x | 1.13% |
“Like bringing a PVC pipe to a steel battle.”
12. Miscellaneous – Shareholding, Promoters
| Quarter | Promoters | Public |
|---|---|---|
| Jun 2025 | 61.16% | 38.60% |
No FIIs, No DIIs (unless you count one guy with ₹500).
Retail base: ~10,000 shareholders. That’s… intimate.
Preferential issue may shake this up—if dilution kicks in.
13. EduInvesting Verdict™
Axel Polymers is at a crossroads. Decent tech. Decent product lineup. But revenue’s shrinking, margins are yo-yo-ing, and profits barely register. The preferential issue could be a lifeline—or a lifeboat.
“A small-cap compounder. But right now, it’s more Plastic Promise than Polymer Power.”
Metadata:
Written by EduInvesting Team | 24 July 2025
Tags: Axel Polymers, Plastic Compounds, Preferential Issue, EduInvesting Premium
