At a Glance
Primo Chemicals Ltd (formerly Punjab Alkalies) makes caustic soda, chlorine, hydrogen, and enough bleaching powder to wipe away investor tears. FY25 revenue rebounded to ₹556 Cr, but profit? A modest ₹13 Cr. Yet, the stock sports a P/E of 53, trading like it just discovered lithium instead of selling chlorine. Promoter holding at 31% makes it look like even insiders are hesitant.
Introduction
Once upon a time (1975), Primo made basic chemicals for textile mills and paper factories. Fast forward to FY25 – the same business, same products, but a rollercoaster financial journey. After a loss in FY24, Primo crawled back to profit in FY25. The market seems to think the company is the next chemical messiah, pricing it like a growth tech firm.
But can a caustic soda maker justify such a high multiple? Or is this just hype bleaching out the fundamentals?
Business Model (WTF Do They Even Do?)
- Products: Caustic soda, chlorine, hydrochloric acid, sodium hypochlorite, hydrogen gas, bleaching powder, aluminum chloride.
- Applications: Water treatment, textiles, detergents, dyes, power plants, metal processing, and other
