Pacific Inds (523483)

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

Key Financials

Strengths

• Book value per share of ₹229.07 provides an asset floor; at ₹268.20, P/B of 1.17 is not an extreme premium.
• Trailing P/E of 23.64 suggests the company still has positive trailing earnings despite the sharp profit fall.
• Latest quarter sales of ₹27 Cr show the business is still operating, not completely shut down.
• Price near the 52-week high indicates strong market interest and possible institutional/sentiment support.

Concerns

• Sales growth of -57.78% and profit growth of -71.97% show severe business shrinkage.
• Latest quarter net profit is ₹0 Cr, meaning current earnings power is negligible.
• ROE of 1.88% and ROCE of 3.07% are far below acceptable return thresholds; the business is not compounding shareholder value.
• Piotroski F-score of 3/9, zero dividend yield, and missing debt/promoter data add significant uncertainty.

AI Analysis

Let me apply my filters. Pacific Inds sells granite and marble—a commodity-like product where pricing power is scarce and customers can always switch. The numbers tell me this is not a franchise. Sales have dropped 57.78%, profits have fallen 71.97%, and the latest quarter's net profit is exactly ₹0 Cr. So why would I pay a P/E of 23.64 for that earnings power? That is hope, not value. Return on equity is a meagre 1.88% and ROCE is 3.07%; the company barely earns a return above the cost of capital. The Piotroski F-score of 3/9 also flags weak financial health. On the asset side, the book value is ₹229.07 per share and the price is ₹268.20, so the market is asking for only 1.17 times book. That gives some downside cushion if the granite inventory and fixed assets are truly worth book value. But there is no dividend yield, no promoter holding detail, and a sales slide of 57.78% suggests the operating franchise is shrinking, not growing. The stock is at the top of its 52-week range—from ₹110.15 to ₹268.20—which means Mr. Market is already celebrating a recovery that is not yet visible in the profit and loss statement. For a cyclical industry like granites and marbles, I would rather buy at the bottom of earnings and wait for the upcycle. Today, however, the stock is priced for improvement while the latest quarter is still at zero profit. I need several quarters of rising sales, positive net profit, and an ROE above the level of a fixed deposit before I can call this an investment. As Graham said, price is what you pay, value is what you get. At ₹268.20, I do not see margin of safety.

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