Stock Performance and Market Context
On 5 Feb 2026, Indian Acrylics Ltd’s stock price fell by 5.64% in a single session, underperforming its sector by 3.39%. This decline followed two consecutive days of gains, signalling a reversal in short-term momentum. The stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring a sustained bearish trend.
In contrast, the broader market index, Sensex, experienced a negative session, dropping 457.44 points or 0.62% to close at 83,300.10. Despite this, Sensex remains within 3.43% of its 52-week high of 86,159.02, highlighting the relative weakness of Indian Acrylics Ltd compared to the overall market.
Over the past year, Indian Acrylics Ltd has delivered a return of -41.58%, significantly lagging behind the Sensex’s positive 6.44% gain. The stock’s 52-week high was Rs.10.19, indicating a steep decline of nearly 47.4% from that peak.
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Financial Health and Fundamental Metrics
Indian Acrylics Ltd’s financial profile remains under pressure, reflected in its Mojo Score of 12.0 and a Mojo Grade of Strong Sell, which was downgraded from Sell on 30 Apr 2024. The company’s market capitalisation grade stands at 4, indicating a relatively small market cap within its peer group.
The company’s debt situation is a key concern. Its debt-to-equity ratio is alarmingly high at 186.3 times, signalling a very weak long-term fundamental strength. This ratio worsened to 450.12 times in the half-year period, highlighting an increasing reliance on debt financing. The debt-to-EBITDA ratio of 3.60 times further emphasises the company’s limited capacity to service its debt obligations efficiently.
Operating cash flow for the year was negative at Rs. -9.54 crores, while cash and cash equivalents stood at a low Rs.7.25 crores in the half-year period. These figures point to constrained liquidity and limited financial flexibility.
Growth and Profitability Trends
Indian Acrylics Ltd has experienced subdued growth over the last five years, with net sales declining at an annual rate of -5.72%. Operating profit has remained flat over the same period, indicating stagnation in core business profitability. Despite this, the company’s profits have risen by 47.6% over the past year, a contrast to the stock’s negative price performance.
However, the company’s operating profits remain negative, which adds to the risk profile of the stock. The stock is trading at valuations that are considered risky relative to its historical averages, reflecting investor caution.
Shareholding and Market Pressure
Promoter shareholding in Indian Acrylics Ltd is notable for the high level of pledged shares, with 26.36% of promoter shares currently pledged. This factor can exert additional downward pressure on the stock price, especially in falling markets, as pledged shares may be subject to liquidation in adverse conditions.
Over the medium to long term, the stock has underperformed key benchmarks such as the BSE500 index across three years, one year, and three months, reinforcing the trend of below-par performance.
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Summary of Key Concerns
The stock’s fall to Rs.5.36, its lowest level in 52 weeks, reflects a combination of factors including weak financial fundamentals, high leverage, limited growth prospects, and liquidity constraints. The company’s inability to generate positive operating cash flow and its elevated debt ratios contribute to a challenging financial environment.
Additionally, the high proportion of pledged promoter shares adds a layer of vulnerability to the stock’s price stability. The persistent underperformance relative to broader market indices and sector peers further highlights the difficulties faced by Indian Acrylics Ltd in regaining investor confidence.
Market and Sector Comparison
While the petrochemicals sector has seen mixed performance, Indian Acrylics Ltd’s share price trajectory has been notably weaker. The Sensex’s proximity to its 52-week high contrasts sharply with the stock’s 52-week low, underscoring the divergence in performance. The sector’s average trends have not been sufficient to offset company-specific challenges.
Trading below all major moving averages indicates a lack of positive momentum, and the recent price action suggests that the stock remains under selling pressure in the near term.
Conclusion
Indian Acrylics Ltd’s decline to a 52-week low of Rs.5.36 on 5 Feb 2026 is a reflection of ongoing financial and market pressures. The company’s elevated debt levels, subdued sales growth, and liquidity constraints have weighed heavily on its share price. Despite a recent uptick in profits, the overall risk profile remains elevated, as evidenced by the strong sell rating and deteriorated fundamental grades.
Investors and market participants will continue to monitor the company’s financial metrics and market behaviour closely as it navigates these challenges.
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