Strong Price Momentum and Market Outperformance
Acutaas Chemicals has demonstrated remarkable price momentum in recent trading sessions. The stock has gained for three consecutive days, delivering a cumulative return of 7.62% over this period. On the day in question, it outperformed its sector by 5.08%, reaching an intraday high of ₹1,740.55, a 5.4% increase from the previous close. This upward trajectory is further supported by the stock trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling strong technical strength and sustained buying interest.
Despite a slight decline in delivery volume by 23.8% compared to the five-day average, the stock remains sufficiently liquid, with a trade size capacity of approximately ₹0.93 crore based on 2% of the five-day average traded value. This liquidity ensures that the stock can accommodate sizeable trades without significant price disruption, which is favourable for institutional and retail investors alike.
Fundamentals that don't lie! This Small Cap from Trading shows consistent growth and price strength over time. A reliable pick you can truly count on.
- - Strong fundamental track record
- - Consistent growth trajectory
- - Reliable price strength
Robust Financial Performance Underpinning Investor Confidence
The company’s strong fundamentals are a key driver behind the stock’s rise. Acutaas Chemicals boasts a zero debt-to-equity ratio on average, indicating a clean balance sheet and minimal financial risk. Its net sales have grown at an annualised rate of 27.10%, while operating profit has expanded by 32.44%, reflecting efficient operational management and healthy margin expansion.
Recent financial results have been particularly encouraging. The company reported a 63.28% increase in net profit in the latest quarter ending September 2025, marking the fifth consecutive quarter of positive results. Net sales for the latest six months stood at ₹513.44 crore, growing 21.27% year-on-year. Additionally, the company’s return on capital employed (ROCE) reached a high of 21.30%, and its inventory turnover ratio improved to 5.74 times, signalling effective asset utilisation and inventory management.
Institutional investors hold a significant 38.38% stake in Acutaas Chemicals, reflecting strong endorsement from sophisticated market participants who typically conduct thorough fundamental analysis before committing capital. This institutional backing often provides stability and confidence to the broader market.
Over the longer term, the stock has delivered exceptional returns, outperforming the Sensex and BSE500 benchmarks. It has generated an 80.70% return over the past year, vastly exceeding the Sensex’s 8.61% gain. Over three years, the stock’s return of 292.28% dwarfs the Sensex’s 37.97%, underscoring its status as a market-beating performer.
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- - Real-time research report
- - Complete fundamental analysis
- - Peer comparison included
Valuation Considerations and Risks
Despite the strong performance, investors should be mindful of the stock’s valuation metrics. Acutaas Chemicals carries a relatively high price-to-book value of 10, which suggests a premium valuation compared to peers. Its return on equity (ROE) stands at 15.8%, indicating solid profitability but also contributing to the elevated valuation.
However, the company’s price-to-earnings-to-growth (PEG) ratio is 0.5, signalling that the stock’s price growth is not excessively stretched relative to its earnings growth, which has surged by 139.8% over the past year. This low PEG ratio may justify the premium valuation to some extent, as it reflects strong earnings momentum supporting the current price levels.
In summary, the rise in Acutaas Chemicals’ share price on 27-Jan is underpinned by a combination of robust financial results, sustained operational growth, strong institutional support, and technical strength. While valuation remains on the higher side, the company’s consistent earnings growth and market-beating returns provide a compelling rationale for the stock’s recent gains.
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