Update on Pasupati Acrylon: Although stock has touched new high today, we feel it is still worth buying:
1) Globally some acrylic fibre plants are on verge of closure. Formosa with capacity of more than 70000 tonnes is operating at half capacity and may completely close down its operations by next year
2) Viability: In India, new plants are unlikely to come up as Greenfield plant of Pasupati capacity will cost nearly 1000 crores. Hence, new plants not economically viable
Barring unforeseen circumstances, Pasupati can be 150-200 in 2-3 years