Stateowned Punjab Alkalies and Chemicals (PACL) stands out as an exception among caustic soda makers as its stock has not been able to make the most of the rally in the space over the past few months, weighed down by weak financials and failed attempts to pest the state government’s stake.

Other companies in the space such as Gujarat Alkalies and Chemicals, DCW and Meghmani Organics have seen a 50-100% jump in their stock prices over the past few months, given the rise in caustic soda prices and strong financial performance during the quarter ended March 2016.

The recent surge in caustic soda prices did enable PACL narrow its net loss substantially to Rs 18 lakh during the March quarter as against Rs 14 crore during the preceding 9 months. Revenues rose by 10% year-on-year during the quarter to Rs 64 crore.

The market capitalisation of PACL stands at 13% of its FY16 revenue. The market capitalisation of its peers are close to their toplines. PACL has assets worth more than thrice its market capitalisation, which also includes the land parcel. The land at cost value equals the company’s market capitalisation.

After falling sharply in the first three months of 2016, the PACL stock has been rising gradually. It has gained over 40% since March, but is still down by 12% in the year to date. The performance in the short- and medium-term would be determined by the financial performance during the forthcoming quarters. Caustic soda prices have increased 6% year-to-date at rs 1,860 for 50 kg.