Poddar Pigments Limited (PODDARMENT) AI Stock Analysis

Poddar Pigments Limited

(NSE:PODDARMENT)

Select Model

Rating:64Neutral

Price Target:INR 269.00▲(6.77% Upside)

Action:downgraded

Date:09/09/26

The overall score is driven primarily by a strong, low‑leverage balance sheet and continued revenue growth, offset by compressed margins, declining net profit, and persistently negative free cash flow that weaken the financial trajectory. Technicals currently show a price well above key moving averages but in clearly overbought territory, adding near‑term downside risk. The valuation, with a mid‑20s P/E and modest dividend yield, appears broadly fair but not compelling given the mixed earnings and cash‑flow picture.

Positive Factors

Conservative balance sheetVery low leverage gives Poddar Pigments financial resilience and flexibility. The sizable equity base and historically debt-free position reduce balance-sheet strain, helping the company withstand operating volatility and preserve capacity to fund products, customers, and future growth.

Negative Factors

Profitability deteriorationRepeated declines in gross profit, earnings, and operating profit show that the recent weakness is broader than a single quarter. If sustained, lower profitability could reduce internal funding, limit operating flexibility, and weaken the earnings power of the business over coming periods.

Poddar Pigments Limited (PODDARMENT) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 2.71B
Dividend Yield: 1.59%
Average Volume (3M): 792
Price to Earnings (P/E): 17.8
Beta (1Y): 0.98
Revenue Growth: 4.50%
EPS Growth: -17.13%
Country: India
Employees: 358
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Poddar Pigments Limited Business Overview & Revenue Model

Company Description

Poddar Pigments Limited, established in 1991 and based in Mumbai, India, specializes in the production and distribution of color and additive masterbatches. These essential compounds are primarily utilized in the dope dyeing process for synthetic fib...

How the Company Makes Money

Poddar Pigments Limited makes money primarily by manufacturing and selling masterbatches and related pigment-based polymer additive products to plastic processors and manufacturers. Its core revenue stream is product sales: customers purchase specifi...

Poddar Pigments Limited Financial Statement Overview

Summary

Financial strength is anchored by a very conservative, low‑debt balance sheet and growing equity, but weakening margins, declining net profit, and three consecutive years of negative free cash flow materially temper the overall profile despite recent improvement in operating cash flow.

Income Statement

63Positive

Balance Sheet

88Very Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.79B	3.75B	3.68B	3.66B	3.37B	2.93B
Gross Profit	880.33M	699.38M	1.15B	987.54M	1.05B	773.06M
EBITDA	319.02M	237.20M	388.69M	460.49M	435.65M	307.45M
Net Income	152.41M	147.59M	228.18M	288.19M	273.40M	212.50M
Balance Sheet
Total Assets	0	4.12B	4.14B	3.88B	3.32B	3.53B
Cash, Cash Equivalents and Short-Term Investments	256.59M	256.59M	453.66M	417.81M	421.06M	132.55M
Total Debt	0	61.11M	122.38M	0	0	0
Total Liabilities	-3.51B	613.67M	501.57M	400.91M	379.01M	351.13M
Stockholders Equity	3.51B	3.51B	3.63B	3.48B	2.94B	3.17B
Cash Flow
Free Cash Flow	350.53M	-66.72M	-120.49M	-49.79M	115.09M	-357.19M
Operating Cash Flow	418.41M	250.92M	122.18M	212.57M	155.46M	-31.92M
Investing Cash Flow	-181.46M	-427.05M	-251.90M	-240.81M	-4.74M	-5.45M
Financing Cash Flow	-167.97M	-103.71M	74.25M	-2.47M	-66.39M	-30.34M

Poddar Pigments Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price251.95

Price Trends

50DMA262.92Negative

100DMA255.48Negative

200DMA247.49Positive

Market Momentum

MACD-2.69Positive

RSI43.41Neutral

STOCH46.11Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PODDARMENT, the sentiment is Negative. The current price of 251.95 is below the 20-day moving average (MA) of 259.48, below the 50-day MA of 262.92, and above the 200-day MA of 247.49, indicating a neutral trend. The MACD of -2.69 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 46.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PODDARMENT.

Poddar Pigments Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:PODDARMENT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:DICIND	76Outperform	INR 4.99B	17.60	―	0.53%	11.71%	79.88%
IN:FCL	70Outperform	INR 56.58B	40.42	―	0.27%	91.44%	19.67%
IN:PODDARMENT	64Neutral	INR 2.79B	17.79	―	1.59%	4.50%	-17.13%
IN:BODALCHEM	57Neutral	INR 20.74B	31.70	―	―	27.57%	135.05%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SUDARSCHEM	46Neutral	INR 78.99B	112.32	―	0.92%	90.13%	-6.80%

* General Sector Average

Performance Comparison

IN:PODDARMENT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:PODDARMENT	Poddar Pigments Limited	251.80	-22.99	-8.37%
IN:BODALCHEM	Bodal Chemicals Limited	172.90	113.08	189.03%
IN:DICIND	DIC India Limited	559.95	44.82	8.70%
IN:FCL	Fineotex Chemical Limited	48.51	19.55	67.51%
IN:SUDARCOLOR	Heubach Colorants India Limited	385.05	-107.60	-21.84%
IN:SUDARSCHEM	Sudarshan Chemical Industries Limited	1029.70	-126.03	-10.91%

Poddar Pigments Limited Corporate Events

Poddar Pigments Publishes Q1 FY2026 Unaudited Results Extract

Aug 15, 2026

Poddar Pigments Limited has released an extract of its unaudited financial results for the quarter ended June 30, 2026, in line with Securities and Exchange Board of India disclosure rules. The results have been published in leading English and Hindi...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 09, 2026

Poddar Pigments Limited AI Stock Analysis