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Primo Chemicals Limited (IN:PRIMO)
:PRIMO
India Market
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Primo Chemicals Limited (PRIMO) AI Stock Analysis

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IN:PRIMO

Primo Chemicals Limited

(PRIMO)

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Neutral 65 (OpenAI - Gpt-5.6Sol)
Rating:65Neutral
Price Target:
₹23.00
▼(-2.99% Downside)
Action:Reiterated
Date:07/31/26
The score is primarily supported by stronger FY2026 fundamentals (rapid revenue growth, improved net profitability, better leverage, and higher free cash flow) and a constructive price trend above major moving averages. These positives are tempered by a demanding valuation (P/E ~35) and weakening operating margins versus the prior year, which increases execution risk if cost pressures persist.
Positive Factors
Strong Revenue Acceleration
The sharp FY2026 revenue increase indicates stronger business activity and improved scale. If sustained, this growth can expand the earnings base and support better fixed-cost absorption, although future performance will depend on maintaining demand and converting growth into profitable sales.
Negative Factors
Declining Operating Margins
Lower EBIT and EBITDA margins show that rapid revenue growth is not fully translating into operating profitability. If cost pressure or pricing constraints persist, earnings quality and the durability of recent profit improvement could remain limited.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Acceleration
The sharp FY2026 revenue increase indicates stronger business activity and improved scale. If sustained, this growth can expand the earnings base and support better fixed-cost absorption, although future performance will depend on maintaining demand and converting growth into profitable sales.
Read all positive factors

Primo Chemicals Limited (PRIMO) vs. iShares MSCI India ETF (INDA)

Primo Chemicals Limited Business Overview & Revenue Model

Company Description
Headquartered in Chandigarh, India, Primo Chemicals Limited, established in 1975, is actively involved in the production and distribution of various chemical compounds across the country. The company's extensive product line encompasses industrial...

Primo Chemicals Limited Financial Statement Overview

Summary
FY2026 showed major revenue acceleration (~93.6% YoY), improved net margin (~2.7% vs ~0.6%), reduced leverage (debt-to-equity ~0.32 vs ~0.43), and sharply higher free cash flow (~99% increase). Offsetting this, operating profitability weakened versus FY2025 (EBIT margin ~2.8% vs ~5.8%; EBITDA margin ~12.2% vs ~15.0%) and overall margins remain thin, limiting return strength.
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
74
Positive
BreakdownTTMMar 2025Mar 2024
Income Statement
Total Revenue2.90B5.62B5.56B
Gross Profit1.07B1.05B995.93M
EBITDA481.37M682.87M833.64M
Net Income37.51M153.71M35.60M
Balance Sheet
Total Assets7.34B6.92B7.41B
Cash, Cash Equivalents and Short-Term Investments138.79M107.08M82.46M
Total Debt1.62B1.31B1.69B
Total Liabilities3.35B2.86B3.50B
Stockholders Equity3.99B4.06B3.91B
Cash Flow
Free Cash Flow164.50M327.29M242.82M
Operating Cash Flow504.21M587.45M644.34M
Investing Cash Flow-303.76M-194.76M-446.55M
Financing Cash Flow-194.10M-384.17M-90.29M

Primo Chemicals Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
₹8.52B15.421.41%946.38%
67
Neutral
₹8.78B10.860.38%13.23%21.18%
65
Neutral
₹5.23B32.64-2.70%-15.50%
59
Neutral
₹7.00B18.780.83%49.58%43.22%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
49
Neutral
₹6.54B32.340.34%-77.13%
44
Neutral
₹2.45B-23.800.42%-39.30%-700.73%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:PRIMO
Primo Chemicals Limited
21.23
-4.44
-17.30%
IN:DIAMINESQ
Diamines & Chemicals Ltd.
242.65
-122.35
-33.52%
IN:DMCC
DMCC Speciality Chemicals Limited
300.90
-7.29
-2.36%
IN:INDOAMIN
Indo Amines Limited
120.85
-23.64
-16.36%
IN:UNIENTER
Uniphos Enterprises Limited
94.00
-53.07
-36.08%
IN:VALIANTORG
Valiant Organics Limited
296.40
-41.35
-12.24%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2026