Paramount Syntex Ltd

It recycles waste acrylic fibre, bought from virgin fibre makers, into dyed yarn that it sells to knitwear makers, almost all of them in Punjab. Its revenue has grown from INR 81 cr in FY22 to INR 122 cr in FY26.

The company operates much like a commodity processor with limited pricing power. Virgin acrylic prices cap what it can charge for recycled fibre, and its yarn competes with numerous unorganised spinners in the same cluster.

We would skip the issue. Its recent jump in margins rests largely on inventory build-up, very little of its profit has turned into cash, and a few governance gaps add to our caution.