Panasonic Energy (504093)

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

Strengths

• ROCE of 17.59% suggests decent operating capital efficiency
• Dividend yield of 3.11% provides some income despite weak earnings
• Quarterly sales of ₹72 Cr indicate a meaningful operating base
• Book value per share of ₹143.09 offers a tangible asset floor

Concerns

• P/E of 41.37 is expensive alongside 35.12% profit decline
• Latest quarter posted a net loss of ₹1 Cr, signaling deteriorating profitability
• ROE of only 2.82% is far too low for a company trading at 3.97 times book
• Piotroski F-Score of 3/9 points to worsening financial health

AI Analysis

Let me begin with what I like: a 17.59% ROCE is not trivial, and a 3.11% dividend yield gives the shareholder some cash while waiting. But that is where my enthusiasm ends. Panasonic Energy is being offered at ₹567.75, near the top of its 52-week range, and the market wants a P/E of 41.37 for a business whose sales fell 2.26% and whose profits collapsed by 35.12%. The latest quarter tells the real story: ₹72 Cr of sales and a ₹1 Cr net loss. A company that cannot earn money in the current quarter does not deserve a growth multiple. Graham taught me that price is what you pay, value is what you get. Here I pay ₹567.75 for ₹143.09 of book value—3.97 times book—while the company earns only 2.82% on equity. That is barely above a fixed deposit, and with negative profit growth, there is no compounding engine at work. The Piotroski F-Score of 3 out of 9 is a red flag; it says the fundamentals are deteriorating, not improving. The household products industry can be a steady business, but this company is not showing steadiness. It is shrinking. Perhaps the 17.59% ROCE means the core operations have some efficiency, but if that is true, the profit decline and quarterly loss suggest costs or competition are eating the gains. Without debt/equity data, I also cannot judge the true leverage and financial risk. Mr. Market has bid the stock from ₹250.50 to ₹567.75, but a rising price cannot mask falling earnings. In the end, this fails my two rules: no durable competitive advantage can be seen in these numbers, and there is certainly no margin of safety. I would rather miss the rally than pay 41 times earnings for a loss-making quarter. I will keep it on my watchlist, but only at a much lower price.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer