Panasonic Carbon (508941)

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

Key Financials

Strengths

• Debt-free balance sheet, with D/E not available and no leverage burden
• Return on equity of 13.31% and ROCE of 17.00%, showing good capital efficiency
• Reasonable valuation with P/E of 10.18 and P/B of 1.42
• Dividend yield of 2.58% provides some income cushion

Concerns

• Sales declined 12.75% and profit fell 2.81%, indicating shrinking business
• Piotroski F-score of 3/9 suggests deteriorating financial health
• Small revenue base—latest quarter sales of ₹12 Cr—makes the company vulnerable to demand shocks
• Promoter holding not disclosed; lack of transparency for retail investors

AI Analysis

Looking at Panasonic Carbon, I see a small-cap with a market cap of ₹241 crore, trading at ₹497.85. The P/E of 10.18 and price-to-book of 1.42 are not demanding, and the 2.58% dividend yield gives some comfort. Returns on equity and capital employed are respectable at 13.31% and 17.00%, respectively, and the balance sheet appears debt-free—always a good sign. But I must respect the numbers that matter for a value investor: sales are down 12.75% and profits have slipped 2.81%. The latest quarter shows just ₹12 crore in sales and ₹4 crore in profit, meaning the business is small and commercially fragile. The Piotroski F-score of 3/9 is a loud warning—this is not a financially healthy enterprise right now. This is a commodity electrode business, and I see no enduring moat, only cyclical demand. At book value of ₹349.92, the stock trades at a premium to assets, but not egregiously so. The debt-free status provides downtime protection, yet there is no sign of a catalyst for growth. As Graham would say, price is what you pay, value is what you get. At the current price, I am getting a cyclical, low-growth business with decent capital history but weak recent fundamentals. I would wait for clearer signs of stabilization or a lower entry price before committing serious money.

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