Acutaas Chemicals Ltd is Rated Buy

Current Rating and Its Significance

MarketsMOJO’s 'Buy' rating for Acutaas Chemicals Ltd indicates a positive outlook for the stock based on a comprehensive evaluation of multiple factors. This rating suggests that investors may consider adding or holding the stock in their portfolios, anticipating favourable returns relative to the sector and market benchmarks. The rating was last revised on 06 Oct 2025, when the Mojo Score improved from 64 to 70, reflecting enhanced confidence in the company’s prospects.

Here’s How the Stock Looks Today

As of 20 January 2026, Acutaas Chemicals Ltd is positioned strongly within the Pharmaceuticals & Biotechnology sector, classified as a smallcap company. The Mojo Score of 70.0 and the accompanying 'Buy' grade reflect a balanced assessment of quality, valuation, financial trends, and technical indicators.

Quality Assessment

The company’s quality grade is rated as 'good', underpinned by a robust financial structure and operational efficiency. Notably, Acutaas Chemicals maintains a low debt-to-equity ratio averaging zero, indicating minimal reliance on debt financing and a strong balance sheet. This conservative capital structure reduces financial risk and supports sustainable growth.

Long-term growth metrics further reinforce quality credentials. Net sales have expanded at an annualised rate of 27.10%, while operating profit has grown even faster at 32.44%. The company has demonstrated consistent profitability, with net profit growth of 63.28% and positive results declared for five consecutive quarters, signalling operational resilience and effective management.

Valuation Considerations

Despite the strong fundamentals, the valuation grade is marked as 'very expensive'. This suggests that the stock is trading at a premium relative to its earnings and sector peers. Investors should be aware that the current price may already reflect high expectations for future growth, which could limit near-term upside or increase volatility if growth slows.

However, the premium valuation is partly justified by the company’s superior growth rates and market-beating returns, which have outpaced the BSE500 index over the last three years, one year, and three months.

Financial Trend and Performance

The financial trend for Acutaas Chemicals is rated 'very positive'. The latest data shows net sales for the most recent six months at ₹513.44 crores, growing at 21.27%. Return on Capital Employed (ROCE) for the half-year stands at a robust 21.30%, indicating efficient use of capital to generate profits.

Inventory turnover ratio is also strong at 5.74 times, reflecting effective inventory management and operational efficiency. Institutional investors hold a significant 39.44% stake, which often signals confidence from knowledgeable market participants with the resources to analyse company fundamentals thoroughly.

Technical Outlook

Technically, the stock is graded as 'mildly bullish'. Recent price movements show mixed short-term performance with a 1-day decline of 0.90% and a 3-month dip of 6.53%, but longer-term momentum remains positive. The stock has delivered a remarkable 64.22% return over the past year and a 38.44% gain over six months, underscoring strong investor interest and market support.

Year-to-date, the stock has seen a slight decline of 1.88%, which may present buying opportunities for investors focusing on long-term growth.

Investment Implications

For investors, the 'Buy' rating on Acutaas Chemicals Ltd signals a favourable risk-reward profile. The company’s strong quality metrics and positive financial trends provide a solid foundation for growth, while the premium valuation calls for careful monitoring of market conditions and earnings updates.

Investors should consider the stock’s sector dynamics within Pharmaceuticals & Biotechnology, where innovation and regulatory factors can influence performance. The high institutional ownership adds a layer of confidence but also suggests that market movements could be influenced by large-scale trading activity.

Summary of Key Metrics as of 20 January 2026

Acutaas Chemicals Ltd’s financial and market data as of today provide a comprehensive picture of its current standing:

• Market Capitalisation: Smallcap


• Mojo Score: 70.0 (Buy Grade)


• Debt to Equity Ratio: 0 (Low leverage)


• Net Sales Growth (Annualised): 27.10%


• Operating Profit Growth (Annualised): 32.44%


• Net Profit Growth: 63.28%


• ROCE (Half Year): 21.30%


• Inventory Turnover Ratio (Half Year): 5.74 times


• Institutional Holdings: 39.44%


• Stock Returns: 1 Year +64.22%, 6 Months +38.44%, 3 Months -6.53%

These figures highlight the company’s strong operational performance and market appreciation, supporting the current 'Buy' recommendation.

Considerations for Investors

While the stock’s valuation is on the higher side, the quality of earnings and growth trajectory justify the premium to some extent. Investors should weigh the potential for continued earnings momentum against the risks of market corrections or sector-specific challenges.

Given the mildly bullish technical outlook, the stock may offer attractive entry points during short-term dips, especially for those with a medium to long-term investment horizon.

Overall, Acutaas Chemicals Ltd presents a compelling case for inclusion in a diversified portfolio focused on growth within the Pharmaceuticals & Biotechnology sector.

Unlock special upgrade rates for a limited period. Start Saving Now →