Financial Trend: From Outstanding to Positive
Pasupati Acrylon’s financial trend rating has been downgraded from outstanding to positive, signalling a slight tempering in its recent performance momentum. The company reported strong results for the quarter ending March 2026, with net sales for the latest six months reaching ₹513.86 crores, marking an impressive growth rate of 50.17%. Operating profit to interest ratio surged to a peak of 19.47 times, underscoring efficient interest coverage. Profit before tax excluding other income (PBT less OI) hit a high of ₹33.57 crores, while profit after tax (PAT) stood at ₹26.28 crores. Earnings per share (EPS) also reached a quarterly high of ₹2.95.
However, the financial trend score declined to 19 from 33 over the past three months, reflecting some concerns. Notably, interest expenses for the nine months increased sharply by 88.15% to ₹9.05 crores, which could pressure margins if the trend continues. Despite this, the company remains net-debt free, a significant positive in its financial structure.
Quality Grade: Downgraded from Good to Average
The quality grade for Pasupati Acrylon has been lowered from good to average, indicating a more cautious view on its fundamental strength. Over the past five years, the company’s sales have grown at a compound annual growth rate (CAGR) of 14.85%, while EBIT growth averaged 13.00%. The average EBIT to interest ratio stands at a healthy 11.46, and the debt to EBITDA ratio is low at 0.94, reflecting manageable leverage. Net debt to equity remains at zero, consistent with the company’s net-debt-free status.
Return on capital employed (ROCE) averaged 20.17%, and return on equity (ROE) was 12.95%, both respectable but not exceptional. The tax ratio is 25.90%, and pledged shares are nil, which supports shareholder confidence. Institutional holding is minimal at 0.68%, suggesting limited institutional interest. Compared to peers in the textile industry, Pasupati Acrylon’s quality rating aligns with several average-rated companies, indicating room for improvement in operational consistency and growth sustainability.
This week's revealed pick, a Large Cap from Public Banks with TARGET PRICE, is already showing movement! Get the complete analysis before it's too late.
- - Target price included
- - Early movement detected
- - Complete analysis ready
Valuation: Attractive Yet Moderated
Pasupati Acrylon’s valuation remains attractive, supported by a price-to-book value of 1.4 and a return on equity of 18.4% in the latest period. The company’s PEG ratio stands at a low 0.1, reflecting strong profit growth relative to its price appreciation. Over the past year, the stock has delivered a 27.70% return, significantly outperforming the Sensex, which declined by 7.50% over the same period. Longer-term returns are also impressive, with a five-year gain of 202.38% compared to the Sensex’s 48.99%.
Despite these positives, the company’s long-term growth rates are moderate, with net sales growing at 14.85% annually and operating profit at 13.00% over five years. This tempered growth outlook, combined with limited institutional ownership (domestic mutual funds hold just 0.59%), suggests some caution among professional investors. The relatively small market capitalisation as a micro-cap stock may also contribute to valuation volatility and liquidity concerns.
Technicals: Shift from Sideways to Bullish
The technical trend for Pasupati Acrylon has improved, moving from a sideways pattern to a bullish stance. Weekly technical indicators such as MACD and Bollinger Bands are bullish, while monthly indicators show mild bearishness or neutrality. Daily moving averages support a bullish outlook, and the KST indicator is bullish on a weekly basis, though mildly bearish monthly. Dow Theory assessments are mildly bullish across weekly and monthly timeframes, and on-balance volume (OBV) shows no clear weekly trend but mild bullishness monthly.
Price action supports this positive technical momentum, with the stock trading at ₹58.36 as of the latest close, up 1.41% on the day. The 52-week high is ₹66.00, and the low is ₹40.16, indicating a strong recovery and upward trend. Recent intraday highs reached ₹62.90, signalling buying interest and potential for further gains.
Want to dive deeper on Pasupati Acrylon Ltd? There's a real-time research report diving right into the fundamentals, valuations, peer comparison, financials, technicals and much more!
- - Real-time research report
- - Complete fundamental analysis
- - Peer comparison included
Long-Term Performance and Risks
Pasupati Acrylon has demonstrated market-beating performance over multiple time horizons. The stock’s returns over one, three, and five years have significantly outpaced the Sensex, with a 3-year return of 92.93% versus the Sensex’s 21.61%, and a 10-year return of 165.88% compared to the Sensex’s 188.28%. This long-term outperformance is supported by consistent profit growth, with profits rising 98.8% over the past year.
Nevertheless, the company faces risks related to its moderate long-term growth rates and limited institutional participation. The relatively low domestic mutual fund holding of 0.59% may reflect concerns about the company’s scale or business model. Investors should also monitor the rising interest costs, which could impact profitability if unchecked.
Overall, Pasupati Acrylon’s revised rating to Buy reflects a balanced view that acknowledges strong recent financial results and technical momentum, tempered by moderate quality metrics and valuation considerations. The company remains a compelling option for investors seeking exposure to the petrochemicals sector with a micro-cap growth profile, but with an awareness of the associated risks.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year Start at 33% Off →
