Pasupati Acrylon Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹80.00+₹0.45 (+0.57%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Pasupati Acrylon Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Pasupati Acrylon Limited manufactures and sells acrylic fibers, and cast polypropylene (CPP) films in India and internationally. It operates through Acrylic Fibre, CPP, and Ethanol segments.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees540

Annual revenue₹1,008 Cr

How does it make money?

Turns over ₹1,008 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 540 employees supports ₹1.87 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.87 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 19.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +22% while net margin moved +59% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+22%

Margin effect+59%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.61 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

86/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

7.5x

3Y Median

12.6x

40 monthly readings · mean 17.2x · range 7.9x–36.2x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 41% below its 3y median of 12.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 89% below the peer median of 69.2x.

vs. its own history

Cheap

12.6x median over 40 months · -41%

vs. sector peers

Cheap

69.2x median of 4 peers · -89%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.5x

PEG

0.30

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 6.7% to 11.8% over 3 years.
Cash generation is improving
Free cash flow is up 53% over 3 years.
Return on equity is rising
ROE has improved from 11.4% to 16.1%.
Return on capital is rising
ROCE has improved from 15.1% to 19.0%.
Very low debt
Debt/Equity of 0.25x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 82541% over 3 years, from ₹0 Cr to ₹107 Cr.
🟡Receivables growing faster than salesFinancial
Receivables up 53% against revenue up 22% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 6.7% to 11.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 41% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 89% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹35 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 53% against revenue up 22%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 6.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 10%✓ 11.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.9% CAGR
Latest reported year was 10.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹35 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 3 neutral · 0 weak

Market Cap

₹713 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.5x

Cheap

Cheap against the generic band

P/B Ratio

1.64x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.72

Profitable

Profitable on a per-share basis

ROE

16.1%

Strong

Strong capital efficiency

ROCE

19.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

10.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1435.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹35 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

15.1%

Good

Healthy core-business profitability

Net Margin

9.3%

Average

Average bottom-line conversion

Current Ratio

4.25

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.61

Defensive

Steadier than the market

52W Range Position

87%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

74.1 / 68.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹826 Cr	₹575 Cr	₹619 Cr	₹1,008 Cr	+6.9%
EBITDA	₹56 Cr	₹25 Cr	₹57 Cr	₹119 Cr	+28.9%
EBITDA Margin	6.7%	4.4%	9.1%	11.8%	—
PAT (Net Profit)	₹36 Cr	₹13 Cr	₹35 Cr	₹70 Cr	+24.9%
EPS	₹4.03	₹1.48	₹3.97	₹7.84	+24.8%
ROE	11.4%	4.0%	9.7%	16.1%	—
ROCE	15.1%	5.5%	9.9%	19.0%	—
Total Debt	₹0 Cr	₹44 Cr	₹108 Cr	₹107 Cr	+838.4%
Free Cash Flow	₹23 Cr	-₹23 Cr	-₹83 Cr	₹35 Cr	+15.1%

🟢 Revenue has grown at 6.9% a year over 3 years.

🟢 EBITDA has grown at 28.9% a year over 3 years.

🟢 EBITDA Margin has risen from 6.7% to 11.8% over 3 years (+5.1 pts).

🟢 PAT (Net Profit) has grown at 24.9% a year over 3 years.

🟢 EPS has grown at 24.8% a year over 3 years.

🟢 ROE has risen from 11.4% to 16.1% over 3 years (+4.7 pts).

🟢 ROCE has risen from 15.1% to 19.0% over 3 years (+3.8 pts).

🔴 Total Debt has grown at 838.4% a year over 3 years.

🟢 Free Cash Flow has grown at 15.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹638 Cr

Total Liabilities

₹202 Cr

Cash & Equivalents

₹42 Cr

Operating Cash Flow

₹52 Cr

Capex

-₹16 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.0%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 positive1 mixed3 general

Do Pasupati Acrylon's (NSE:PASUPTAC) Earnings Warrant Your Attention?

Simply Wall Street, 24 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Pasupati Acrylon Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 28 Aug

Pasupati Acrylon Ltd. (PASUPTAC) Share Price near 52-week high after 11.38% rise

Univest, 14 Oct

Strong Momentum Meets Stretched Valuations as Pasupati Acrylon Ltd Reaches All-Time High

MarketsMojo, 14 Oct

Pasupati Acrylon FY26 net profit rises 97.6% to ₹69.92 crore

scanx.trade, 27 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Pasupati Acrylon standalone net profit rises 1465.14% in the June 2026 quarter

Business Standard, 07 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑