Pasupati Acrylon Ltd is Rated Buy

Current Rating and Its Significance

MarketsMOJO currently assigns Pasupati Acrylon Ltd a 'Buy' rating, indicating a positive outlook for the stock based on a comprehensive evaluation of its quality, valuation, financial trend, and technical factors. This rating suggests that investors may consider adding the stock to their portfolios, expecting favourable returns relative to its risk profile. The rating was adjusted on 19 January 2026, reflecting a slight recalibration of the stock’s overall assessment, but the detailed analysis below is grounded in the most recent data available as of 23 January 2026.

Quality Assessment

As of 23 January 2026, Pasupati Acrylon Ltd demonstrates a strong quality profile. The company maintains a low debt-to-equity ratio, effectively zero, which underscores a conservative capital structure and limited financial risk. This prudent leverage position is complemented by robust operational growth, with operating profit expanding at an impressive annual rate of 67.58%. Such growth reflects efficient management and a solid business model within the petrochemicals sector. Additionally, the company’s return on capital employed (ROCE) stands at a healthy 12.49% for the half-year period, signalling effective utilisation of capital to generate profits. The return on equity (ROE) of 10.3% further confirms the company’s ability to deliver shareholder value.

Valuation Perspective

From a valuation standpoint, Pasupati Acrylon Ltd is currently very attractively priced. The stock trades at a price-to-book value of 1.1, which is considered fair and reasonable when compared to its historical averages and peer group valuations. This valuation metric suggests that the market is not overpaying for the company’s assets and growth prospects. Moreover, the price-to-earnings growth (PEG) ratio is approximately 1, indicating that the stock’s price fairly reflects its earnings growth potential. This balance between price and growth makes the stock appealing for investors seeking value alongside growth.

Financial Trend and Performance

The latest data as of 23 January 2026 shows that Pasupati Acrylon Ltd has delivered a commendable financial performance over the past year. Net profit has surged by an extraordinary 825.71%, highlighting a significant turnaround or expansion in profitability. Quarterly figures reinforce this trend, with net sales reaching a record Rs 280.25 crores and PBDIT (profit before depreciation, interest, and taxes) hitting a high of Rs 27.15 crores. These figures reflect strong operational momentum and effective cost management. The stock has generated a 10.67% return over the last twelve months, aligning well with the company’s profit growth of 10.6%, which supports the sustainability of its earnings trajectory.

Technical Analysis

Technically, the stock is currently exhibiting a sideways trend. This indicates a period of consolidation where the price fluctuates within a range without a clear directional bias. While this may suggest some short-term uncertainty or market indecision, it also provides a stable base for potential upward movement, especially given the company’s strong fundamentals and attractive valuation. The one-day price change as of 23 January 2026 was a modest decline of 0.41%, with a one-month decline of 16.03%, but a positive three-month return of 3.7% suggests some recovery in recent weeks.

Sector and Market Context

Pasupati Acrylon Ltd operates within the petrochemicals sector, a segment that often experiences cyclical fluctuations tied to global commodity prices and industrial demand. Despite these inherent sectoral volatilities, the company’s microcap status and strong financial discipline position it well to capitalise on growth opportunities. The current Mojo Score of 77.0, down slightly from 80, still places the stock comfortably within the 'Buy' grade, reflecting a balanced view of risk and reward.

Shareholding and Corporate Governance

The majority shareholding is held by promoters, which often indicates a stable ownership structure and alignment of interests between management and shareholders. This can be a positive factor for investors seeking companies with committed leadership and clear strategic direction.

Implications for Investors

For investors, the 'Buy' rating on Pasupati Acrylon Ltd signals a favourable risk-reward profile supported by strong fundamentals and attractive valuation metrics. The company’s robust profit growth, low leverage, and efficient capital utilisation provide confidence in its operational resilience. While the sideways technical trend suggests some short-term price consolidation, the underlying financial strength and reasonable valuation make the stock a compelling candidate for medium to long-term investment horizons.

Summary

In summary, Pasupati Acrylon Ltd’s current 'Buy' rating by MarketsMOJO, last updated on 19 January 2026, reflects a well-rounded assessment of its quality, valuation, financial trend, and technical position as of 23 January 2026. The company’s strong earnings growth, conservative balance sheet, and fair valuation underpin this positive recommendation. Investors looking for exposure to the petrochemicals sector with a microcap growth story may find Pasupati Acrylon Ltd an attractive addition to their portfolios.

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