Indian Acrylics reports strong quarterly numbers
Indian Acrylics has posted strong set of numbers for quarter ending June 30, 2019. The acrylics major from India has been growing its export sales network and the company has reported strong growth compared to June 2018 quarter.
Compared to June 2018 sales of Rs 160 crore, the company reported Rs 221 crore sales in June 2019. Operating profit margin was higher at 9 percent compared to 6 percent.
The company reported net profit of Rs 10.5 corre, which is highest quarterly net profit for acrylics major since March 2017. Investors with long term view can buy Indian Acrylics in range of Rs 12-15.
Pasupati Acrylon is another competitor in the segment. The company is fairly valued and compared to Indian Acrylics, Pasupati Acrylon has lower debt.
After the company announced quarterly results, the stock has witnessed nearly 25% gain over three trading sessions. The stock was underperforming for the last six months and has touched a 52-week low of Rs 6.75. With strong set of numbers, Indian Acrylics looks like a good long term bet. Only issue is the higher debt of the company. If the company manages to reduce its debt, it will be a good long term stock at current valuations.