Recent Price Movement and Market Context
Pasupati Acrylon’s stock performance on 20-Jan was notably weaker than its textile sector peers, underperforming the sector by nearly 6%. The textile sector itself declined by 2.75%, indicating broader industry challenges that have weighed on investor sentiment. The stock reversed a five-day streak of gains, signalling a shift in momentum. Intraday, the share price touched a low of ₹43.83, representing an 8.92% drop from the previous close, and traded within a wide range of ₹5.09, highlighting elevated volatility.
Adding to the bearish tone, the weighted average price showed that more volume was traded near the day’s low, suggesting selling pressure dominated throughout the session. The stock’s intraday volatility was measured at 6.46%, underscoring the heightened uncertainty among traders.
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Technical Indicators and Trading Activity
From a technical perspective, Pasupati Acrylon is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness across moving averages typically signals a bearish trend and may deter short-term buyers. Despite the decline, investor participation has increased, as evidenced by a 31.13% rise in delivery volume on 19-Jan compared to the five-day average, reaching 57,160 shares. This suggests that while some investors are offloading shares, others may be accumulating at lower levels, anticipating a potential recovery.
Long-Term Performance and Valuation Context
Looking beyond the immediate price action, Pasupati Acrylon has delivered strong long-term returns, with a five-year gain of 246.92%, significantly outperforming the Sensex’s 65.05% over the same period. However, the stock’s recent short-term returns have lagged behind the benchmark, with a one-month decline of 16.58% compared to the Sensex’s 3.24% fall, and a year-to-date drop of 17.23% versus the Sensex’s 3.57% decline. Over the past year, the stock has generated a modest 1.43% return, trailing the Sensex’s 6.63% gain.
Despite this, the company’s fundamentals remain robust. Pasupati Acrylon boasts a zero average debt-to-equity ratio, indicating a strong balance sheet with no reliance on debt financing. Operating profit has grown at an impressive annual rate of 67.58%, and net profit surged by 825.71% in the latest results declared in September 2025. The company reported its highest quarterly net sales of ₹280.25 crores and PBDIT of ₹27.15 crores, reflecting operational strength. Return on capital employed (ROCE) stands at a healthy 12.49%, while return on equity (ROE) is 10.3, supporting an attractive valuation with a price-to-book value of 1. The PEG ratio of 0.9 further suggests the stock is reasonably valued relative to its earnings growth.
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Investor Outlook and Conclusion
The sharp decline in Pasupati Acrylon’s share price on 20-Jan can be attributed primarily to a combination of sector-wide weakness, technical selling pressure, and increased intraday volatility. The stock’s underperformance relative to the textile sector and the broader market highlights the challenges it faces in the near term. However, the company’s strong fundamentals, including robust profit growth, zero debt, and attractive valuation metrics, provide a solid foundation for potential recovery.
Investors should weigh the current technical setbacks against the company’s long-term growth prospects and recent positive financial results. The rising delivery volumes amid the price decline may indicate that some market participants view the lower levels as an opportunity to accumulate shares. Nonetheless, caution is warranted given the stock’s recent trend reversal and trading below all major moving averages.
Overall, Pasupati Acrylon’s recent price fall reflects short-term market dynamics rather than a deterioration in its underlying business performance. Investors with a longer-term horizon may find value in the stock’s attractive fundamentals and growth trajectory, while those focused on near-term price action should monitor sector trends and technical indicators closely.
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