The shares of a Microcap Company that is primarily engaged in the manufacturing of acrylic fiber, acrylic tow, and acrylic tops, which are used in various sectors such as apparel, textiles, carpets, sweaters, etc, surged 17 percent in today’s trade after setting up a 150 KL grain-based Ethanol Plant.
Price Action
The shares of Pasupati Acrylon Ltd, with a total market capitalization of Rs 432.03 Crore, reached an Intraday high of Rs 49.99 per share, gaining around 17 percent on Tuesday. As of noon, the shares retreated from their day’s high and were trading at Rs 48.5 per share, which was 13.4 percent higher than the previous closing price of Rs 42.75.
Reason for the Rise
The main reason for the jump in Pasupati Acylon Ltd’s share price was the completion of the proposed setting up of a 150 KL per day grain-based Ethanol Plant by the company. The company also stated in the exchange filing that regular trials and final level testing have been started, and the commencement of the commercial production will be intimated to the Exchange accordingly.
Diversified Segments
In FY24, the company generates revenue from two main segments: ASF (Acrylic Staple Fibre) and CPP (Cast Polypropylene) Films. To further diversify, Pasupati Acrylon planned to enter ethanol production in FY25 by setting up a grain-based ethanol plant of 150 KLPD Capacity, reducing its dependence on acrylic fibers and CPP films and minimizing risks linked to raw material price fluctuations.
Also read: Stock under ₹10 jumps 4% after promoter buys stake worth over ₹4 Cr in the Co.
Manufacturing Capacity
Pasupati Acrylon Ltd has a manufacturing capacity of 45,000 MTPA of Acrylic Fibre, Tow, and Tops, both in grey as well as Dyed (Gel dyed). It expanded into CPP Film (flexible packaging) in September 2017, with an initial capacity of 5,000 MTPA, later increasing it to 10,000 MTPA. It has recently set up a 150 KL per day grain-based Ethanol Plant.
Financials
The company reported an increase of 11.4 percent YoY in Revenue from Operations from Rs 156 Crore in Q3FY24 to Rs 174 Crore in Q3FY25. Their Net Profit also increased by 11.4 percent YoY from Rs 9 Crore to Rs 10 Crore over the same period.
About company
The company is primarily engaged in the manufacturing of Acrylic Staple Fiber (ASF) and supplies its Acrylic fiber under the brand name ‘ACRYLON’. Their products are used in various sectors such as apparel, textiles, upholstery, sweaters, shawls, blankets, and carpets.
Written By Adhvaitha Nayani
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