Paragon Fine and Speciality Chemical Ltd. (PARAGON)
SME CapIndustrials stocks · SME cap · NSE
Paragon Fine & Speciality Chemical Ltd. is an Indian manufacturer of specialty intermediates, serving industries like specialty pigments & dyes, agrochemicals, cosmetics, pharmaceuticals, and electronics. The company has over 20 years of experience, exports over 40% of its products, and manufactures 50+ products under NDA.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 15/100PAT -13% YoY · Rev +13% YoY · margin expansion · +68% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹69 Cr | +13.1% | +68.3% |
| EBITDA | ₹10 Cr | +66.7% | +233.3% |
| Operating margin | 14.0% | +500 bps | +700 bps |
| PAT | ₹7 Cr | -12.5% | +250.0% |
| PAT margin | 10.1% | +389 bps | +526 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
H2 FY26 revenue grew 7.4% YoY with PAT up 67.7% YoY, driven by improved margins. However, full year FY26 revenue declined 5.3% YoY, despite PAT increasing 52.9% YoY.
While H2 FY26 showed strong revenue and profit growth, the full year FY26 revenue declined. This, coupled with a significant increase in receivable days and net working capital days, raises concerns about operational efficiency and cash conversion, despite improved margins. The capacity expansion and new product focus are positive, but execution on working capital management is critical.
Revenue by Segment (FY26)
Latest issuer-disclosed distribution across 6 reported categories.
Operational Expansion
Increasing production capacity with current capacity at 650 MTPA and expansion underway while the plant is functioning.
New Product Introduction
Introduction of HALQUINOL, targeting an addressable market of 10,000 MTPA, with projected production of at least 150 MTPA. Reached 100 MTPA of HALQUINOL.
Product Diversification
New intermediates in agro chemicals & cosmetics segments are introduced, expected to commercialize by next year.
Market Penetration
Future GMP Certification to be acquired and a Clean Room Facility to be developed for specialty products.
Current Capacity & Expansion
Current capacity is 650 MTPA, with expansion underway while the plant is functioning.
HALQUINOL Production
Reached 100 MTPA of HALQUINOL production, targeting at least 150 MTPA.
Clean Room Facility
A Clean Room Facility for multi-purpose use (Pharma, Cosmetics & Electronics) will be available once expansion is completed.
Global and Regional Leadership
India ranks as the 6th largest producer worldwide and 3rd largest in Asia in the chemical industry.
Growing Domestic Demand
Rising demand from sectors like Textiles (projected $350B by FY25), Automotive (growth to $300B by 2026), and Construction (reaching $1.4T by 2025).
Strong Policy Support
Government initiatives like PCPIRs, National Petrochemical Awards, and Centres of Excellence foster innovation and investment.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
H2 YoY comparison provides insight into recent operational momentum and margin expansion, while the full year (FY26 vs FY25) comparison offers a broader view of annual performance, which shows a revenue decline despite H2 strength.
EBITDA Margin
H2 FY26 EBITDA Margin was 14.27% vs H2 FY25 at 9.5%. FY26 EBITDA Margin was 11.62% vs FY25 at 7.3%.
PAT Margin
H2 FY26 PAT Margin was 10.25% vs H2 FY25 at 6.6%. FY26 PAT Margin was 8.23% vs FY25 at 5.1%.
Net Working Capital Days
Net Working Capital Days increased to 149 in FY26 from 89 in FY25.
Receivable Days
Receivable Days increased significantly to 116 in FY26 from 48 in FY25.
Cost Optimization
Development of in-house spray drying capabilities to enhance operational efficiency, optimize costs, and improve margins.
IPO Proceeds Utilization
Utilization of IPO proceeds for scaling up operational and product expansion activities.
Dichlone Market Growth
Despite global challenges, demand for Dichlone surged to 120MT in 2023, with the company prepared for ongoing demand and new market opportunities.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Full Year Revenue Growth | FY26 revenue declined 5.3% YoY. | Reversal of the full-year revenue decline and sustained growth in subsequent periods. |
| Receivable Days | Increased to 116 days in FY26 from 48 days in FY25. | Improvement in collection efficiency and reduction in receivable days to historical levels. |
| Net Working Capital Days | Increased to 149 days in FY26 from 89 days in FY25. | Effective working capital management to reduce the overall cycle. |
| HALQUINOL Production Ramp-up | Reached 100 MTPA. | Progress towards the targeted production of at least 150 MTPA and its contribution to revenue. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
49NeutralMACD −
Technical chart
PARAGONdaily · 1Y · AUTO+4.4%Daily technical trend read
NeutralTrend is undirectional — long-term uptrend intact. RSI 46.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 46 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 25% off 52W high · 39% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 58 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 58 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 5.3%.
- Piotroski is strong at 7/9.
- Fair-value margin of safety is positive at 74.1%.
Main drags
- Penalty bucket subtracts 8 points.
- Quality is weaker at 1/20; verify the latest quarterly trend.
- Cash flow is weaker at 6/10; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 56th percentile of the scored universe and 52nd percentile within Industrials. Main check: results consistency is weak at 27/100.
Healthy Trust Lite: Promoter holding is 74.9%. Key concern: 3 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 52nd pctile, median 68 · SME: 70th pctile, median 64
6 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 74.9%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 5.3%.
- ▸Debt/equity is 0.01.
Trust risks
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -4.2%.
- ▸0/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 10.40
- P/B
- 0.95
- EV/EBITDA
- 6.78
- Market Cap
- 93.90Cr
Profitability
- ROE
- 9.64%
- ROCE
- 12.80%
- ROA
- 8.33%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 6.00%
- EPS 5Y
- 15.00%
- Revenue 3Y
- 2.00%
- EPS 3Y
- -3.00%
Balance Sheet
- Debt/Equity
- 0.01
- Interest Coverage
- —
- Altman Z
- 8.77
- Book Value
- 50.30
Cash Flow
- FCF Yield
- 5.32%
- FCF Positive Y
- 3/5
- OCF
- 5.00 Cr
- EPS TTM
- 4.63
Shareholding
- Promoter Hold
- 74.87%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 48%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.