Pasupati Acrylon (PASUPTAC)

FairStock Score: 59/100 — STEADY

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

Key Financials

Strengths

• ROE of 16.02% with debt/equity of only 0.29 shows a conservatively financed business generating good current returns.
• Recent momentum is strong: sales grew 54.85%, profit grew 157.85%, and latest quarter alone contributed ₹269 Cr sales and ₹26 Cr net profit.
• Piotroski F-Score of 7/9 indicates solid fundamental health across profitability, leverage, and efficiency.
• High promoter holding of 65.87% aligns owner-manager interests.
• Valuation is optically cheap: P/E of 8.58, P/B of 1.34, and PEG of 0.08 against book value of ₹39.75.

Concerns

• Petrochemicals are cyclical; current high margins and profit growth may be peak-cycle earnings rather than sustainable normal earnings.
• No dividend yield (0.00%); shareholder returns depend entirely on reinvestment or future price appreciation.
• PEG of 0.08 and low P/E could be a value trap if earnings mean-revert; the stock has already fallen from its 52-week high of ₹78.95.
• ROCE of 11.89% is only moderate, suggesting limited competitive moat in a commodity industry.

AI Analysis

At ₹53.35, Pasupati Acrylon is a ₹475 Cr petrochemicals company trading at 8.58 times earnings and 1.34 times book value, with book value at ₹39.75. The current numbers look striking: sales grew 54.85%, profits jumped 157.85%, and the latest quarter delivered ₹269 Cr in sales and ₹26 Cr in net profit. A Piotroski F-Score of 7/9 also points to sound fundamentals. But I have learned that in a commodity petrochemical business, today's boom can become tomorrow's bust. ROCE of 11.89% is respectable but not exceptional, ROE of 16.02% is good, and debt/equity of only 0.29 is reassuring. Promoter holding of 65.87% is a positive alignment. Yet I must be careful: the 52-week range shows the stock has already fallen from ₹78.95 to ₹53.35, and there is zero dividend yield. That means shareholders are relying entirely on reinvestment and price appreciation. The PEG of 0.08 appears absurdly cheap, but such a low PEG often signals that the market doubts the sustainability of current earnings. Growth of 157.85% in profit while sales grew 54.85% tells me margins are expanding at cyclical peak-like levels, and that can reverse quickly. Ben Graham would insist I value the company on average earnings, not one exceptional year. Based on the figures, this looks like a well-managed, conservatively financed cyclical enjoying a strong upswing. If the petrochemical cycle turns, earnings and valuation may both compress. For now, it is not a bluestocking compounder; it is a cyclical opportunity that demands constant monitoring.

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