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Needs current assets and current liabilities.
PRASOLCHEM · Chemicals · INE455U01024
Analyst mean 0.00 · 0 analysts · 0% bullishThis company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
Prasol Chemicals Limited, established in 1992, is a leading forward-integrated manufacturer of acetone and phosphorus-based specialty chemicals, as well as other customized specialty chemicals involving complex and differentiated chemistries. The company operates two automated manufacturing facilities in Khopoli and Mahad, Maharashtra, with an aggregate installed capacity of 98,644 metric tonnes per annum as of June 30, 2026. The company’s comprehensive product portfolio includes over 150 specialty chemical products, consisting of 21 acetone-based specialty chemicals (such as diacetone alcohol, isophorone, and hexylene glycol), 53 phosphorus-based specialty chemicals (such as phosphorus pentasulphide and polyphosphoric acid), and 76 other customized specialty products (including surfactants, performance additives, ethers, esters, polymers, and acids). Prasol is the sole manufacturer of isophorone in India with a capacity of 9,000 MTPA. It caters to a highly diversified customer base of 1,618 customers in Fiscal 2026 across major application industries including performance chemicals, paints, inks, construction and adhesives (PICA), pharmaceuticals, agrochemicals, and home and personal care. The company possesses a robust global footprint, exporting to 69 countries across the Asia-Pacific region, North America, South America, and Europe. It is also the largest importer of acetone and among the top five importers and users of yellow phosphorus in India.
Prasol's competitive moat is driven by its position as the sole manufacturer of isophorone in India (9,000 MTPA capacity) and the largest importer and consumer of acetone in India, resulting in limited domestic competition. Additionally, the industry has high entry barriers, including a lengthy customer registration and qualification process of 1-4 years, and the company benefits from strong application-driven R&D capabilities and backward integration.
Prasol Chemicals Limited is a forward integrated manufacturer of acetone and phosphorus-based specialty chemicals, as well as other specialty chemicals involving complex and differentiated chemistries. Established in 1992, the company serves a diversified customer base across domestic and international markets, exporting to 69 countries as of July 15, 2026.
Source: p. 237, p. 289
Where the revenue came from, as the document splits it.
| Name | Pct | Source |
|---|---|---|
| Acetone based specialty chemicals | 42.75 | p. 302 |
| Phosphorous based specialty chemicals | 38.3 | p. 302 |
| Other specialty chemicals | 18.33 | p. 302 |
| Other operating and service revenue | 0.62 | p. 302 |
The global chemicals industry expanded to USD 6.2 trillion in CY25 and is projected to reach USD 7.8 trillion by CY29, with the specialty chemicals segment expected to reach a 21-23% market share. The global specialty chemicals market was valued at USD 1,240 billion in CY25 and is projected to reach USD 1,748 billion by CY29, growing at a CAGR of 9.0%. Domestically, the Indian specialty chemicals market reached ₹ 5,563 billion in FY26 and is projected to grow at a CAGR of 10-12% to reach ₹ 7,541 billion by FY29. This growth is propelled by domestic consumption, rising exports, and expanding application industries such as pharmaceuticals, agrochemicals, home care, and performance chemicals.
Growth rate: 10-12%
Market size: ₹ 5,56,300 Crore
Sector slug: specialty-chemicals
Source: p. 232
The comparable set the company chose, which is itself a disclosure.
| Name | Margin | Pb | Pe | Roe | Source |
|---|---|---|---|---|---|
| Aarti Industries Limited | EBITDA Margin: 14.17%, PAT Margin: 5.06% | 46.79 | p. 202, p. 206 | ||
| Atul Limited | EBITDA Margin: 16.53%, PAT Margin: 10.99% | 28.04 | p. 202, p. 206 | ||
| Laxmi Organic Industries Limited | EBITDA Margin: 6.01%, PAT Margin: 2.79% | 59.95 | p. 202, p. 206 | ||
| Vinati Organics Limited | EBITDA Margin: 29.36%, PAT Margin: 19.93% | 30.95 | p. 202, p. 206 | ||
| Privi Speciality Chemicals Limited | EBITDA Margin: 25.21%, PAT Margin: 12.35% | 42.67 | p. 202, p. 206 | ||
| Yasho Industries Limited | EBITDA Margin: 17.04%, PAT Margin: 3.04% | 206.68 | p. 202, p. 206 | ||
| Excel Industries Limited | EBITDA Margin: 12.06%, PAT Margin: 6.91% | 17.12 | p. 202, p. 206 |
As presented in the offer document. Post-listing figures are in the statements above.
Written before listing, answered from the document itself.
Why is a cash-rich firm with ₹ 24.07 crore of cash on hand raising ₹ 80 crore in fresh equity, and why is most of the ₹ 500 crore issue an Offer for Sale (OFS)?
The fresh issue is ₹ 80 crore, out of which ₹ 60 crore is allocated to repay existing term loans to optimize debt-equity ratios and save on interest costs (which stood at ₹ 7.98 crore in FY26). The remaining ₹ 420 crore is an OFS by the promoters and promoter group, allowing them to cash out a portion of their holdings (they hold 89.20% pre-offer) without the funds flowing back to the company for capital investment.
p. 87, p. 188
What is the extent of supplier concentration risk for Prasol's raw materials, and who are these suppliers?
Supplier concentration is extremely high. The top 10 suppliers accounted for 68.87% (₹ 474.13 crore) of the raw materials consumed in FY26, and the top 3 suppliers accounted for 39.75% (₹ 273.69 crore). Crucially, the names of these top suppliers are omitted from the RHP due to 'commercial sensitivities of disclosure.' null of them are disclosed as related parties.
p. 58, p. 302
Why did the company's EBITDA margins drop in FY25 compared to peer averages, and is the recovery in FY26 sustainable?
Profitability is highly sensitive to raw material import costs (acetone and yellow phosphorus). In FY25, margins were compressed due to raw material price escalation. While standalone Operating EBITDA margins recovered to 11.30% in FY26, this is still significantly lower than peers like Vinati (29.36%) and Privi (25.21%), and any future supply chain disruption or rupee depreciation poses a major threat to sustainability.
p. 203, p. 206
What are the material regulatory and operational compliance risks arising from the multiple toxic gas leaks and safety audits?
The company has a history of toxic leaks at its Mahad plant, including a chlorine leak on August 9, 2023, and a hydrogen sulphide (H2S) leak on October 5, 2023, which resulted in fatalities and hospitalizations. These have led to 6 pending criminal cases against Managing Director Gaurang Natwarlal Parikh and show-cause notices from DISH and MPCB. Any adverse court ruling or repeat incident could result in permanent plant shutdowns and criminal liabilities.
p. 22, p. 32, p. 471
What the issue priced at, on the figures in the document.
Pe basis: Based on Basic and Diluted EPS for the financial year ended March 31, 2026. Cap vs Floor not finalised.
Consists of specialty chemical players Aarti, Atul, Laxmi Organic, Vinati, Privi Speciality, Yasho, and Excel, irrespective of variation in P/E.
Source: p. 201
How the book filled. A category that bid far above the rest is a different signal from a uniformly covered issue.
| Date | Name | Shares | Price per share | Category | Source |
|---|---|---|---|---|---|
| 1993-02-25 | Initial Subscription and Further Issue | 150000 | 10 | Various subscribers | p. 111 |
| 1994-04-01 | Further Issuance | 350000 | 10 | Various subscribers | p. 111 |
| 1995-02-21 | Further Issuance | 200000 | 10 | Various subscribers | p. 111 |
| 1995-03-16 | Further Issuance | 500000 | 10 | Various subscribers | p. 111 |
| 1996-02-23 | Further Issuance | 1108500 | 10 | Various subscribers | p. 111 |
| 2002-03-07 | Buy back | -135211 | 30 | Company buy back | p. 111 |
| 2003-10-13 | Buy back | -325800 | 30 | Company buy back | p. 111 |
| 2004-03-01 | Buy back | -100732 | 30 | Company buy back | p. 111 |
| 2007-07-12 | Rights issue (1:4) | 436690 | 50 | Rights issue | p. 111 |
| 2009-12-10 | Rights issue (1:4) | 545862 | 60 | Rights issue | p. 111 |
| 2012-02-21 | Rights issue (2:15) | 363908 | 125 | Rights issue | p. 111 |
| 2016-10-17 | Private Placement | 6783 | 400 | Private Placement | p. 111 |
| 2017-07-12 | Buy back | -200000 | 400 | Company buy back | p. 111 |
| 2021-12-08 | Stock Split (Sub-division 1:5) | 11600000 | Sub-division | p. 111 |
Ceo: Gaurang Natwarlal Parikh
Outstanding litigation against the Company includes 9 tax cases (direct tax: 4 cases of ₹ 0.57 crore; indirect tax: 5 cases of ₹ 3.78 crore), 16 statutory/regulatory proceedings (aggregate ₹ 6.18 crore) and 1 material civil litigation (₹ 1.24 crore). Outstanding litigation against Promoters includes 6 criminal proceedings, 4 tax proceedings (₹ 2.80 crore) and 1 statutory/regulatory proceeding (all against Gaurang Natwarlal Parikh except 1 police complaint against Pankil Nishith Dharia with a fine of ₹ 1,250). Outstanding litigation against Directors includes 2 direct tax cases (₹ 0.60 crore).
Auditor name: C N K & Associates LLP
As of the date of the RHP, the Promoters and Promoter Group collectively hold 51,735,560 Equity Shares constituting 89.20% of the pre-Offer issued, subscribed and paid-up Equity Share capital.
The Statutory Auditors' report on the Audited Financial Statements for FY26 and Audited Consolidated Financial Statements for FY25 and FY24 contains emphasis of matter regarding IPO expenses of ₹ 2.92 crore in FY26 and excess managerial remuneration of ₹ 2.24 crore in FY24, along with modified opinions on internal financial controls over financial reporting regarding inventory records and overhead allocation for all three years.
Auditor changed last 3y: No
Source: p. 2, p. 32, p. 74, p. 466, p. 472
Transactions with promoters, directors and their entities, as disclosed.
| Counterparty | Amount cr | Nature | Relationship | Core function | Source |
|---|---|---|---|---|---|
| Nishith R Shah | 4.582 | Directors remuneration and remuneration payable | Promoter and Chairman | Executive Management | p. 98 |
| Gaurang N Parikh | 3.237 | Directors remuneration and remuneration payable | Promoter and Managing Director | Executive Management | p. 98 |
| Dhaval Nalin Parikh | 4.41 | Purchase of a land parcel on January 20, 2022, adjoining Khopoli facility | Promoter and Joint Managing Director | Compliance with green belt environmental clearance requirements | p. 346 |
| Heat Fabs (Firm) | 0.72 | Purchase of Stores & Consumables and Equipments | Enterprise over which relative of KMP has control | Supply chain and capital equipment procurement | p. 97 |
Delays in depositing Employee Provident Fund (EPF) contributions: 3 instances in FY26 (negligible amount), 2 instances in FY25 (₹ 0.006 crore), and 2 instances in FY24 (₹ 0.007 crore) due to ERP system design deficiencies, Aadhaar linking/KYC errors, EPFO portal technical issues, and banking payment glitches. Outstanding MSME dues of ₹ 3.50 crore and undisputed other trade payables of ₹ 204.73 crore are recorded as of March 31, 2026.
Defaults disclosed: Yes
Source: p. 51, p. 52, p. 90
A change between the two filings is a disclosure in itself.
Numbered markers are corporate actions and, once the filings are read, capital and governance events. Prices are split-adjusted so the series is continuous.
What the numbers mean when read together — computed from the filings, not a score.
Operating cash is 59% of trailing profit — a modest gap worth keeping an eye on.
Why this reading: Noted with caution: a mild gap that is commonly benign (working-capital timing) but worth tracking across years.
Operating cash ₹49 cr vs trailing profit ₹83 cr. Gaps in the 0.5–0.9 range are usually timing, occasionally a early tell.
Net margin has narrowed from 9.3% to 6.7% year-on-year — profitability per rupee of sales is shrinking.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Quarter net margin 6.7% vs 9.3% four quarters earlier. Sustained compression signals pricing pressure, cost inflation, or mix deterioration.
Free cash flow swings between positive and negative across the cycle.
Why this reading: Surfaced for context, not as a concern — it only becomes meaningful if it persists or pairs with other signals.
Latest ₹11 cr, negative in 2 of 6 years.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are 4.4% of assets. Free cash flow negative in 2 of 6 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Revenue grew faster than the capital behind it, which is what operating leverage looks like: the existing asset base is working harder.
cumulative operating cash flow ÷ cumulative net profit
₹317 cr ÷ ₹302 cr, over 6 years
1.05×
Above 1.0 means cash exceeds reported profit — the healthier reading.(net profit − operating cash flow) ÷ average total assets
(₹83 − ₹49) cr ÷ average assets
4.4%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
6.7% × 1.47 × 1.87
18.5%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹120 cr ÷ ₹8 cr
15.00×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹111 cr ÷ ₹449 cr
0.25×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +3% vs revenue +33%, FY2023 to FY2026
-30pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
The growth rate that makes today's market value equal the discounted cash flows, at a 11.5% discount rate and 4.0% terminal growth. Not a forecast — the arithmetic of what is already in the price. Compare it with what the business has actually delivered.
Reverse DCF — the growth already in the price — A standard inversion of discounted cash flow, used to avoid the forecasting problem entirely.
Instead of forecasting cash flows and deriving a value, it takes today's market value as given and solves for the growth rate that would justify it. The output is not a view — it is the arithmetic of what the market is currently assuming.
How to read itCompare it with what the business has actually delivered. A price implying 30% a year against a decade of 15% is a demanding assumption; the reverse is a modest one.
Where it failsUseless when free cash flow is negative or unusually depressed, which is common mid-capex. Highly sensitive to the discount rate — a point either way moves the answer materially.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Median of the companies we hold in the same sector (Chemicals). Every figure on both sides is the live feed's trailing twelve months, so the two are measured the same way whatever depth of extraction this company has had. A number only means something next to something else — expensive against the market and cheap against peers are different facts.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 75.25% to 75.25% across these quarters.
FII held steady from 0.18% to 0.18% across these quarters.
MF held steady from 2.93% to 2.93% across these quarters.
Other held steady from 21.64% to 21.64% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Debtor days
How long customers take to pay | 90 | 71 | 66 | 67 | 71 | 83 |
| Inventory days
How long stock sits before it sells | 68 | 85 | 74 | 58 | 79 | 67 |
| Payable days
How long the company takes to pay suppliers | 143 | 133 | 91 | 99 | 102 | 91 |
| Cash conversion cycle
Debtor + inventory − payable days | 15 | 22 | 49 | 25 | 48 | 58 |
| Working capital days | -25 | -7 | 5 | 14 | 28 | 42 |
| ROCE %
Return on capital employed | — | 32.0% | 15.0% | 11.0% | 15.0% | 24.0% |
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue from operations | 592 | 896 | 930 | 877 | 1,012 | 1,233 |
| Other income | 9 | 7 | 2 | 4 | 3 | 4 |
| Depreciation | 13 | 17 | 19 | 21 | 23 | 25 |
| Finance cost | 12 | 12 | 12 | 11 | 8 | 8 |
| Profit before tax | 34 | 111 | 58 | 34 | 59 | 112 |
| Net profit (owners) | 25 | 83 | 49 | 18 | 44 | 83 |
| EPS (₹) | 86.52 | 14.24 | 8.38 | 3.13 | 7.51 | 14.33 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 3 | 12 | 12 | 12 | 12 | 12 |
| Reserves | 177 | 251 | 298 | 314 | 356 | 437 |
| Borrowings | 162 | 162 | 186 | 83 | 102 | 111 |
| Net block | 267 | 293 | 291 | 326 | 326 | 314 |
| CWIP | 20 | 25 | 60 | 22 | 21 | 47 |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Assets | 550 | 677 | 688 | 626 | 723 | 839 |
| Line | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Cash from operations | 20 | 81 | 29 | 116 | 22 | 49 |
| Cash from investing | -41 | -42 | -54 | -12 | -26 | -42 |
| Cash from financing | 14 | -12 | 11 | -115 | 10 | 0 |
| Free cash flow | -27 | 33 | -23 | 97 | 0 | 11 |
| Net change in cash | -7 | 28 | -13 | -11 | 7 | 7 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.