Pasupati Acrylon Limited is a prominent manufacturer specializing in Acrylic Fibre, Tow, and Tops. Established in 1982, its manufacturing facility is located in Thakurdwara, Distt. Moradabad, Uttar Pradesh. Under the leadership of promoter Mukesh Jain, the company has cultivated a robust presence in the textile and chemical industries over more than four decades.
The company offers a diverse range of acrylic tows and tops, including gel-dyed, low pill fiber, shrinkable fiber, soft feel fiber, tow-dyed, and super bright fibers. These products are marketed under the ACRYLON brand name and are used in applications such as sweaters, shawls, apparel, blankets, carpets, and upholstery. The manufacturing facility was initially set up in technical collaboration with SNIA BPD of Italy and adheres to ISO 9001:2015 and OEKO-TEX Standard certifications, ensuring high-quality production standards.
The production capacity has seen significant evolution since its inception. The project commenced production in November 1990 with an installed capacity of 15,000 tpa. Following a de-bottlenecking scheme, the installed capacity increased to 18,000 tpa by July 1993. The company has also installed an additional thermo-stretching line to produce more value-added high-shrinkage fibres.
Pasupati Acrylon operates through multiple business segments contributing to its revenue streams, primarily including the Acrylic Fibre Division, Ethanol Plant, and Cast Polypropylene Film Division, with the Acrylic Fibre segment generating the majority of its revenue. The company's acrylic fiber products cater to diverse applications across various industries, including woollen knitwear, worsted fabrics, carpets, and sportswear.
In addition to acrylic fibers, the company has strategically diversified into Cast Polypropylene (CPP) Film manufacturing. Commercial production of CPP Film began on March 26, 2019, from its facility in Thakurdwara, Moradabad. It offers metalized, natural, and white CPP films, thereby expanding its presence in the flexible packaging industry.
A significant strategic move by the company is its entry into the renewable energy sector through its ethanol production facility. As per regulatory filings on March 24, 2025, the company commenced commercial operations at its 150 KL per day grain-based ethanol plant in Thakurdwara, District Moradabad, Uttar Pradesh. This development marks a crucial diversification step, leveraging its existing expertise in the chemical sector to expand into ethanol production, an area with strong government backing.
The ethanol business aligns well with government initiatives and the company's strategic expansion into the renewable fuel sector. The plant is expected to bolster revenue and contribute to India's ethanol blending program. Pasupati Acrylon Limited has already secured supply contracts, having been allocated quantities for the supply of 3,450 kilolitres and 12,375 kilolitres of Ethanol during Q2 and Q4 respectively of Ethanol Supply Year 2024-25.
The company's financial performance presents mixed trends across different periods.
- Full Year Ended March 2025: Net profit rose by 168.23% to Rs 35.38 crore compared to Rs 13.19 crore in the previous year ended March 2024. Sales increased by 8.03% to Rs 621.43 crore from Rs 575.23 crore in the previous year.
- Quarter Ended December 2024: Net profit grew by 11.44% to Rs 10.13 crore compared to Rs 9.09 crore in the quarter ended December 2023. Sales rose by 11.41% to Rs 173.87 crore from Rs 156.06 crore in the corresponding previous quarter.
Pasupati Acrylon Ltd holds a market capitalization of ₹403 Crore as of May 12, 2025, positioning it as a Small Cap company in the Indian equity markets. The company's valuation metrics suggest attractive pricing relative to its peers:
- P/B Ratio: 1.14 times (as of May 12, 2025), a 21% discount to its peers' median of 1.44 times.
- P/E Ratio: 10.99 times (as of May 12, 2025), a 28% discount to its peers' median of 15.26 times.
Despite consistent profitability, the company has not been paying dividends, indicating a strategy of retaining earnings for growth investments. The company's return metrics show room for improvement.
- Return on Equity: The company has a low return on equity of 8.74% over the last 3 years.
The company maintains stable promoter control with Promoter Holding at 65.9%, ensuring management stability and strategic direction consistency. The Chairman of the company is [Name Not Provided in Source], and the Managing Director is Vineet Jain. Notably, there is no promoter pledging of shares in Pasupati Acrylon Ltd, which indicates strong financial health within the promoter group.
The current shareholding pattern reflects a balanced structure:
- Promoter: 65.9%
- FII: 0.6%
- DII: 0.2%
- Public: 33.4% (as of the last reporting period)
While the company has demonstrated strong profit growth, it faces challenges in revenue expansion. The company has delivered a poor sales growth of -1.30% over the past five years, highlighting potential challenges in its traditional acrylic fiber business. However, the recent diversification into ethanol production and the robust recovery in FY25 profitability suggest significant potential for improved future performance.
Working capital management requires attention, as working capital days have increased from 73.3 days to 114 days, which could impact cash flow efficiency. The company's strategic focus on value-added products and the new ethanol segment are expected to drive future growth and enhance operational efficiency.
