Strong Momentum Drives New High
Pasupati Acrylon’s stock price has demonstrated robust performance over the past year, with a gain of 40.99%, markedly outpacing the Sensex’s 6.46% over the same period. The stock’s recent surge culminated in today’s peak price of Rs.60.89, a level not seen in the past 52 weeks. This new high reflects the company’s steady upward trajectory, supported by its trading above all key moving averages – including the 5-day, 20-day, 50-day, 100-day, and 200-day averages.
Despite a day change of -1.45%, Pasupati Acrylon’s performance remains resilient relative to its sector, underperforming by only 0.43% today. The broader market context also favoured positive sentiment, with the Sensex climbing 675.38 points to close at 85,178.82, just 0.73% shy of its own 52-week high of 85,801.70. The Sensex’s position above its 50-day and 200-day moving averages further highlights the bullish undertone in the market.
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Financial Performance Underpinning the Rally
Pasupati Acrylon’s financial metrics provide insight into the factors supporting its stock price strength. The company’s net sales for the latest quarter reached Rs.280.25 crores, the highest quarterly figure recorded to date. Correspondingly, the PBDIT for the quarter stood at Rs.27.15 crores, also a record high, signalling operational efficiency and revenue growth.
Long-term growth is evident in the company’s operating profit, which has expanded at an annual rate of 67.58%. Net profit growth has been particularly notable, with an increase of 825.71% reported in recent results. These figures highlight the company’s capacity to generate substantial earnings growth, which has been reflected in its stock price appreciation.
Return on Capital Employed (ROCE) for the half-year period is recorded at 12.49%, indicating effective utilisation of capital resources. Meanwhile, the Return on Equity (ROE) stands at 10.3%, suggesting a fair valuation relative to shareholder equity. The company’s Price to Book Value ratio of 1.4 places it at a premium compared to its peers’ historical averages, consistent with its market-beating performance.
Market Position and Valuation Context
Pasupati Acrylon operates within the petrochemicals industry, a sector that has seen varied performance in recent months. The company’s low average debt-to-equity ratio of zero reflects a conservative capital structure, which may contribute to investor confidence in its financial stability. Over the past year, the stock has generated returns of 41.14%, outperforming the BSE500 index across multiple time frames including the last three years, one year, and three months.
While the stock trades at a premium valuation, this is supported by its consistent profit growth and strong operational metrics. The company’s PEG ratio of 1.2 further contextualises its valuation relative to earnings growth, indicating a balanced relationship between price and profitability expansion.
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Market Environment and Sectoral Trends
The broader market environment has been conducive to Pasupati Acrylon’s stock performance. The Sensex’s upward movement and proximity to its own 52-week high reflect a generally positive market sentiment. Small-cap stocks have led the market rally, with the BSE Small Cap index gaining 0.91% today, indicating strength in smaller companies that may complement the momentum seen in mid and large caps like Pasupati Acrylon.
Within the petrochemicals sector, Pasupati Acrylon’s performance stands out due to its consistent upward price movement and strong financial results. The company’s ability to maintain trading levels above all major moving averages suggests sustained investor confidence and technical strength.
Considerations on Shareholding and Market Participation
Despite the company’s size and market presence, domestic mutual funds hold a relatively small stake of 0.59%. This limited participation may reflect a cautious stance or differing perspectives on valuation and business fundamentals within the mutual fund community. Such dynamics are not uncommon in stocks with premium valuations and rapid price appreciation.
Nonetheless, Pasupati Acrylon’s stock continues to demonstrate resilience and upward momentum, supported by strong financial performance and favourable market conditions.
Summary
Pasupati Acrylon’s attainment of a new 52-week high at Rs.60.89 marks a significant milestone in its market journey. The stock’s performance over the past year, supported by record quarterly sales and profits, alongside solid returns on capital and equity, underscores the company’s robust financial health. Trading above all key moving averages and within a positive market environment, Pasupati Acrylon exemplifies sustained momentum in the petrochemicals sector.
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