Synopsis:
Paushak is in focus as it has announced a 1:2 stock split and a 3:1 bonus issue, with the record date set for 3rd October 2025. Shareholders holding the shares before or on this date will be eligible to receive the split and bonus shares.
The shares of this largest manufacturer of phosgene derivatives are in focus as it fixed its record date for the issuance of bonus and split shares. In this article, we will dive more into the details of this.
With a market capitalization of Rs 1,939 crore, the shares of Paushak Ltd are currently trading at Rs 6,290 per share, representing a decline of just 2 percent from its 52-week high of Rs 6,387.95 per share. Over the past five years, the stock has delivered a poor return of 48 percent, underperforming the NIFTY 50’s return of 121 percent.
About the announcement
Paushak Limited, through a stock exchange filing, announced that it has fixed 3rd of October 2025 as the record date for two significant works, a stock split and the issue of bonus shares.
Firstly, the company will do a stock split, thus every equity share with a face value of Rs 10 will become two shares of Rs 5 each. Simultaneously, the company will also give out an additional 3 bonus shares for every 1 share held (post-split).
The idea behind this is to make share prices more affordable to the buyers and, at the same time, increase the market participation and the liquidity of the company’s shares in the market.
For example, if you own 100 shares with a face value of Rs 10 each presently, after the split, it will be 200 shares with a face value of Rs 5 each. For these 200 shares, you will get a bonus issue at the rate of 3 bonus shares for every 1 share, which means 600 shares will be given to you as a bonus. So, after the completion of these two works, you will hold 800 shares with a face value of Rs 5 each in total.
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Financial Highlights
The company’s revenue for Q1 FY26 came in at Rs 55.88 crore, up by 7.4 percent from Rs 52 crore in the same quarter last year. Additionally, on a sequential basis, revenue grew by 6.7 percent from Rs 52.36 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit growth of 17 percent to Rs 12.03 crore in Q1 FY26 as compared to Rs 10.31 crore in Q1 FY25. Additionally, on a QoQ basis, it grew by 25 percent from Rs 9.60 crore.
The company has delivered a poor ROE and ROCE of 9.76 percent and 11.21 percent respectively, and is currently trading at a P/E of 38x as compared to its industry average of 33.78x.
Paushak Limited, started in 1968 and a part of the Alembic Group, is the specialist Indian manufacturer of phosgene derivatives, the largest in the country. The company owns a state-of-the-art phosgene plant with a capacity of 14,400 MT per year and produces chloroformates, isocyanates, carbamoyl chlorides, carbamates, carbonates, and other niche specialty chemicals that serve international customers.
These are intermediate chemicals, meaning they are not sold directly to consumers but rather are used by other companies to make everyday products. For example, they help manufacture foams for mattresses and insulation, adhesives and paints, plastics used in gadgets and appliances, pesticides for agriculture, and ingredients for certain medicines. Essentially, Paushak’s chemicals form the foundation for many products we use daily.
Written by Satyajeet Mukherjee
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