Stock Performance and Market Context
Indian Acrylics Ltd’s stock has been on a declining trajectory, losing value for three consecutive days and registering a cumulative fall of 5.63% over this period. Today’s price of Rs.5.8 represents the lowest level the stock has traded at in the past year, down sharply from its 52-week high of Rs.10.5. This decline contrasts starkly with the broader market, where the Sensex, despite opening 158.87 points lower, remains only 2.61% below its own 52-week high of 86,159.02.
The stock’s underperformance is further highlighted by its relative weakness against the sector, with a day’s underperformance of 2.69%. Additionally, Indian Acrylics is trading below all key moving averages — the 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish momentum and a lack of short- to long-term price support.
Financial Metrics and Fundamental Assessment
Indian Acrylics Ltd’s financial profile continues to raise concerns. The company carries a notably high debt burden, with a debt-to-equity ratio standing at an alarming 186.3 times, indicating a very weak long-term fundamental strength. This figure worsened in the half-year period, reaching an even higher 450.12 times, underscoring the company’s reliance on borrowed funds relative to shareholder equity.
Over the last five years, the company’s net sales have declined at an annual rate of 5.72%, while operating profit has remained flat, showing no growth. The company’s ability to service its debt is limited, with a debt-to-EBITDA ratio of 3.60 times, which is considered high and indicative of financial stress. Operating cash flow for the fiscal year was negative at Rs. -9.54 crores, further reflecting cash generation difficulties.
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Shareholding and Valuation Concerns
Promoter shareholding in Indian Acrylics Ltd is notable for the high percentage 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.
Valuation metrics also indicate risk. The stock is trading at levels considered risky relative to its historical average valuations. Despite the stock’s negative return of 37.20% over the past year, the company’s profits have increased by 47.6% during the same period, suggesting a disconnect between earnings performance and market valuation.
Comparative Performance and Market Position
Indian Acrylics Ltd has consistently underperformed the benchmark indices over the last three years. Its one-year return of -37.20% contrasts with the Sensex’s positive 8.16% return, and the stock has also lagged behind the BSE500 index in each of the last three annual periods. This persistent underperformance highlights challenges in regaining investor confidence and market share within the petrochemicals sector.
Recent Quarterly Results
The company’s recent results for the quarter ended September 2025 were largely flat, with no significant improvement in operating metrics. Cash and cash equivalents stood at a low Rs.7.25 crores in the half-year period, limiting liquidity buffers. These figures reinforce the cautious outlook on the company’s near-term financial health.
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Mojo Score and Analyst Ratings
Indian Acrylics Ltd currently holds a Mojo Score of 12.0, with a Mojo Grade of Strong Sell as of 30 April 2024, an upgrade from the previous Sell rating. The company’s market cap grade is 4, reflecting its micro-cap status within the petrochemicals sector. These ratings underscore the cautious stance on the stock’s prospects given its financial and market challenges.
Summary of Key Metrics
To summarise, Indian Acrylics Ltd’s stock has reached a 52-week low of Rs.5.8, reflecting a sustained downtrend amid weak financial fundamentals. The company’s high debt levels, flat sales growth, limited cash reserves, and significant promoter share pledging contribute to the stock’s current valuation pressures. Despite some profit growth, the stock’s performance remains subdued relative to benchmarks and sector peers.
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