Current Rating and Its Significance
MarketsMOJO’s Strong Buy rating for Pasupati Acrylon Ltd indicates a high conviction in the stock’s potential for superior returns relative to its peers. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The upgrade to Strong Buy on 11 February 2026 was driven by a significant improvement in the company’s overall mojo score, which rose by 13 points to 90, reflecting enhanced confidence in its fundamentals and market positioning.
Quality Assessment
As of 27 February 2026, Pasupati Acrylon Ltd maintains a good quality grade. The company’s operational metrics demonstrate robust fundamentals, including a consistently low debt-to-equity ratio averaging zero, which underscores a conservative capital structure and limited financial risk. This financial prudence is a key factor in the quality assessment, signalling strong management discipline and sustainable business practices.
Moreover, the company’s return on capital employed (ROCE) for the half-year period stands at an impressive 12.49%, indicating efficient utilisation of capital to generate profits. The return on equity (ROE) is also noteworthy at 14.5%, reflecting effective deployment of shareholder funds. These metrics collectively highlight Pasupati Acrylon’s operational strength and capacity to generate value for investors.
Valuation Perspective
Pasupati Acrylon Ltd’s valuation is currently rated as attractive. The stock trades at a price-to-book value of 1.2, which is considered fair relative to its sector peers and historical averages. This valuation level suggests that the market is pricing the company reasonably, without excessive premiums, offering investors a favourable entry point.
The company’s price-to-earnings growth (PEG) ratio stands at a low 0.2, signalling that earnings growth is not fully reflected in the stock price. This low PEG ratio is a positive indicator for investors seeking growth at a reasonable price, as it implies potential undervaluation relative to earnings momentum.
Financial Trend and Recent Performance
The financial trend for Pasupati Acrylon Ltd is rated outstanding, supported by strong recent results and growth indicators. As of 27 February 2026, the company reported a net profit growth of 58.58% in the December 2025 quarter, marking two consecutive quarters of positive earnings performance. Net sales for the quarter reached ₹269.23 crores, growing 28.4% compared to the previous four-quarter average, while PBDIT hit a quarterly high of ₹39.20 crores.
Stock returns over various periods further reinforce the positive financial trend. The stock has delivered a 33.89% return over the past year and a 30.84% gain over six months. Even the one-month return is robust at 24.67%, despite a slight 10.40% decline over three months, reflecting some short-term volatility. Year-to-date, the stock has appreciated by 3.71%, indicating steady momentum in the current calendar year.
Technical Analysis
From a technical standpoint, Pasupati Acrylon Ltd is rated bullish. The stock’s price action shows strong upward momentum, supported by recent gains including a 3.34% increase on the latest trading day. This bullish technical grade suggests that market sentiment remains positive, with potential for further price appreciation in the near term.
Technical indicators align with the fundamental strength, reinforcing the overall Strong Buy rating. Investors can view this as confirmation that the stock’s price trend supports the underlying financial and quality metrics.
Ownership and Market Capitalisation
Pasupati Acrylon Ltd is classified as a microcap company within the petrochemicals sector. The majority shareholding is held by promoters, which often indicates stable ownership and alignment of interests between management and shareholders. This ownership structure can provide additional confidence to investors regarding the company’s strategic direction and governance.
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What This Rating Means for Investors
For investors, the Strong Buy rating on Pasupati Acrylon Ltd signals a compelling opportunity to consider adding the stock to their portfolios. The combination of strong quality metrics, attractive valuation, outstanding financial trends, and bullish technicals suggests that the company is well positioned for continued growth and value creation.
Investors should note that while the rating was updated on 11 February 2026, all financial data and returns referenced here are current as of 27 February 2026. This ensures that the analysis reflects the latest market conditions and company performance, providing a timely basis for investment decisions.
Given the company’s low leverage, robust profit growth, and reasonable valuation, it offers a balanced risk-reward profile. The positive technical momentum further supports the potential for near-term price appreciation, making it an attractive pick within the petrochemicals sector.
Summary
Pasupati Acrylon Ltd’s Strong Buy rating by MarketsMOJO is underpinned by a high mojo score of 90, reflecting excellence across quality, valuation, financial trend, and technical parameters. The company’s strong earnings growth, conservative capital structure, and fair valuation provide a solid foundation for investors seeking growth opportunities in the microcap petrochemicals space.
As always, investors should consider their individual risk tolerance and investment horizon, but the current data suggests Pasupati Acrylon Ltd is a stock worthy of close attention and potential inclusion in growth-oriented portfolios.
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