Indian Acrylics (514165)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Latest quarter sales of ₹89 Cr shows a real operating base; at ₹168 Cr market cap the annualised sales multiple is roughly 0.5 times, not expensive on sales alone.
• Reported profit growth of 55.19%, however flattering, suggests the loss in the same period last year was much larger; losses are narrowing.
• Piotroski F-Score of 5/9 is middling, not a classic distress score, indicating some operational signs amid the losses.
• Stock trades at ₹12.40, up from a ₹3.52 low, implying the market is beginning to price a petrochemical cycle recovery.

Concerns

• No P/E because there are no consistent trailing earnings; the latest quarter net profit is -₹2 Cr, and ROE is -86.7% with ROCE -5.7%.
• P/B of 7.34 against book value of ₹1.69 is expensive for a loss-making commodity producer; the equity cushion is thin.
• Sales declined -7.33%, and zero dividend yield gives no income support while waiting for a turnaround.
• Debt/equity and promoter holding data are unavailable, limiting confidence in balance sheet strength and governance.

AI Analysis

Let me look at Indian Acrylics the way I look at any business. A petrochemical commodity maker sells a product that is indistinguishable from peers; that is not a franchise with pricing power. The numbers confirm a troubled situation. The company trades at ₹12.40 with a market cap of ₹168 Cr, but book value is only ₹1.69 per share, so I am paying 7.34 times tangible book for a business that earned a ROE of -86.7% and a ROCE of -5.7%. In other words, this enterprise is destroying currency on the capital already invested. The latest quarter lost ₹2 Cr on sales of ₹89 Cr, and sales are down 7.3% year on year. A reported 'profit growth' of 55.2% is simply a smaller loss compared with a deeply depressed base; there is still no P/E because there is no consistent earning power. Graham would ask: what is the asset value? It is tiny, and the price-to-book is high. The Piotroski F-score of 5/9 tells me the financial health is mediocre, not the 8 or 9 I'd need. With zero dividend, zero earnings, and unclear debt-equity data, this is a speculation on cyclical recovery, not an investment. The 52-week range of ₹3.52 to ₹12.40 shows the market is excited, but volatility is not margin of safety. Benjamin Graham said price is what you pay, value is what you get. At ₹12.40, I would struggle to find a defensible intrinsic value. In petrochemicals, the only way to win is a cheap entry price and strong balance sheet. Here I find high valuation, weak returns, and a commodity business. I would put this in the 'too hard' pile and wait for a far better price or far better numbers.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer