Stock Price Movement and Market Context
On 1 Jan 2026, Indian Acrylics Ltd’s stock price declined by 3.25%, closing at Rs.6, its lowest level in the past year. This drop represents a substantial underperformance compared to the petrochemicals sector, which outpaced the stock by 5.19% on the same day. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend.
In contrast, the broader market, represented by the Sensex, showed resilience, opening flat and advancing modestly to 85,261.18 points, a 0.05% gain. The Sensex remains close to its 52-week high of 86,159.02, trading above its 50-day and 200-day moving averages, reflecting a generally bullish market environment. Mid-cap stocks led gains with the BSE Mid Cap index rising by 0.1%, further highlighting Indian Acrylics Ltd’s relative weakness.
Long-Term Price Performance and Valuation
Over the last year, Indian Acrylics Ltd’s stock has declined by 41.91%, a stark contrast to the Sensex’s positive 8.62% return over the same period. The stock’s 52-week high was Rs.11.48, indicating a near 48% drop from its peak. This persistent downtrend has contributed to the company’s current Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 30 Apr 2024, reflecting deteriorating fundamentals and market sentiment.
The company’s Mojo Score stands at 12.0, underscoring the weak outlook. Its market capitalisation grade is rated 4, indicating a relatively small market cap compared to larger peers, which may contribute to liquidity and volatility concerns.
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Financial Health and Debt Burden
Indian Acrylics Ltd’s financial metrics reveal significant stress. The company carries a very high debt burden, with a debt-to-equity ratio of 186.3 times, indicating an extremely leveraged capital structure. This ratio worsened in the half-year period, reaching an alarming 450.12 times, the highest recorded level. Such leverage raises concerns about the company’s long-term financial stability and its ability to meet obligations.
The debt-to-EBITDA ratio stands at 3.60 times, signalling a low capacity to service debt from operating earnings. Operating cash flow for the fiscal year was negative at Rs. -9.54 crores, further emphasising liquidity constraints. Cash and cash equivalents were also at a low Rs.7.25 crores in the half-year period, limiting the company’s buffer against financial shocks.
Growth and Profitability Trends
Over the past five years, Indian Acrylics Ltd has experienced a decline in net sales at an annual rate of -5.72%, reflecting shrinking top-line performance. Operating profit margins have remained modest at 11.89%, with recent results showing flat performance in September 2025. Despite the stock’s price decline, reported profits have increased by 47.6% over the last year, a divergence that may reflect accounting factors or one-off items rather than sustained operational improvement.
Shareholding and Market Risks
Promoter shareholding includes 26.36% of shares pledged, which can exert additional downward pressure on the stock price during market downturns. This factor adds to the risk profile, especially in a falling market environment. The stock’s valuation is considered risky relative to its historical averages, and it has consistently underperformed the BSE500 index over the past three years, reinforcing a pattern of relative weakness.
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Summary of Key Concerns
The stock’s fall to Rs.6, its 52-week low, is underpinned by a combination of factors including a highly leveraged balance sheet, subdued sales growth, limited cash reserves, and a pattern of underperformance relative to market benchmarks. The company’s financial ratios highlight challenges in managing debt and generating positive cash flows, which have weighed on investor sentiment and share price performance.
While the broader market and sector indices have shown resilience and modest gains, Indian Acrylics Ltd’s share price trajectory remains subdued, reflecting ongoing pressures within the company’s financial and operational profile.
Market Position and Sector Context
Operating within the petrochemicals sector, Indian Acrylics Ltd faces a competitive environment where peers have generally maintained stronger financial health and market performance. The company’s current Mojo Grade of Strong Sell and low Mojo Score reflect its relative standing within the sector and the broader market. The stock’s continued trading below all major moving averages further emphasises the prevailing negative momentum.
Conclusion
Indian Acrylics Ltd’s decline to a 52-week low of Rs.6 is a reflection of sustained financial and market challenges. The company’s elevated debt levels, flat sales growth, and liquidity constraints have contributed to its underwhelming stock performance over the past year and beyond. Despite a broader market environment showing strength, the stock remains under pressure, with key financial metrics signalling ongoing concerns.
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