Stock Price Movement and Market Context
On 9 December 2025, Indian Acrylics touched its lowest price point in the past year at Rs.6.3. This new low comes after two consecutive days of decline, although the stock showed a modest gain today, outperforming its sector by 0.31%. Despite this slight uptick, the share price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend.
In contrast, the broader market has shown relative strength. The Sensex opened lower at 84,742.87 points, down 0.42%, and was trading near 84,790.61 points at the time of reporting, still 1.61% below its 52-week high of 86,159.02. Small-cap stocks led the market gains with the BSE Small Cap index rising by 0.21%, highlighting a divergence between Indian Acrylics’ performance and broader market movements.
Financial Performance and Debt Profile
Indian Acrylics’ financial metrics reveal ongoing difficulties. The company’s market capitalisation is modest, with a market cap grade of 4, reflecting its relatively small size within the petrochemicals sector. Over the past year, the stock has generated a return of -43.44%, significantly underperforming the Sensex, which recorded a positive 4.03% return over the same period.
One of the most pressing concerns is the company’s debt position. The debt-to-equity ratio stands at an exceptionally high 186.3 times, signalling a heavy reliance on borrowed funds relative to shareholder equity. This ratio further escalated to 450.12 times in the half-year period, underscoring the company’s stretched capital structure. The debt-to-EBITDA ratio of 3.60 times also points to limited capacity to service debt from operating earnings.
Cash and cash equivalents have dwindled to Rs.7.25 crores in the half-year, while operating cash flow for the year registered a negative Rs.9.54 crores, the lowest recorded in recent periods. These figures highlight liquidity constraints that may affect the company’s ability to meet short-term obligations and invest in growth initiatives.
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Growth Trends and Profitability
Indian Acrylics’ long-term growth trajectory has been subdued. Net sales have shown a compound annual decline of 5.72% over the last five years, while operating profit has averaged 11.89% during the same period. Despite a recent rise in profits by 47.6% over the past year, the company’s overall financial health remains fragile due to the scale of its liabilities and limited revenue expansion.
The company’s operating profits have been negative at times, contributing to a perception of risk in its valuation. The stock’s current trading levels reflect this risk, as it is priced lower than its historical average valuations. The 52-week high price of Rs.12.2 contrasts sharply with the current low, illustrating the extent of the share price contraction.
Shareholding and Market Pressure
Promoter shareholding in Indian Acrylics includes a significant proportion of pledged shares, amounting to 26.36%. This high level of pledged shares can exert additional downward pressure on the stock price, especially in volatile or declining markets, as pledged shares may be sold to meet margin calls or debt obligations.
Over the last three years, Indian Acrylics has consistently underperformed the BSE500 benchmark, reflecting persistent challenges in maintaining competitive performance within the broader market. This trend has contributed to the stock’s current valuation and price levels.
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Summary of Current Position
Indian Acrylics’ stock price reaching Rs.6.3 marks a notable low point in its recent trading history. The company’s financial indicators, including high leverage, limited cash reserves, and subdued sales growth, have contributed to this valuation. While the broader market and small-cap segments have shown relative resilience, Indian Acrylics remains under pressure from its capital structure and market positioning.
The stock’s performance over the past year and longer term highlights the challenges faced by the company in the competitive petrochemicals sector. The combination of a high debt burden, negative operating cash flows, and a significant proportion of pledged promoter shares has influenced the stock’s downward trajectory.
Investors and market participants will continue to monitor Indian Acrylics’ financial disclosures and market movements as the company navigates these conditions.
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