Panjon (526345)

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

Key Financials

Strengths

• Revenue growth of 26.7% indicates expanding demand for the product.
• Piotroski F-Score of 7/9 suggests reasonable financial health despite weak returns.
• Latest quarter sales of ₹14 Cr shows the business is still generating meaningful activity at a small scale.
• Book value of ₹9.64 provides a tangible per-share asset base, even though price is 2.07x above it.

Concerns

• P/E of 62.25 and PEG of 3.39 make valuation demanding relative to 10% profit growth.
• Latest quarter net profit of ₹0 Cr signals poor conversion of sales into earnings.
• ROE of 5.19% and ROCE of 4.00% are far below what I expect from a quality business.
• No dividend, and promoter holding/debt details are N/A, creating opacity.

AI Analysis

At ₹20, Panjon carries a market capitalization of only ₹33 Cr. A value investor asks: what am I buying? The book value is ₹9.64, so I am paying 2.07 times book for a company earning just 5.19% on equity. Its return on capital employed is even lower at 4.00%. These are not the kind of numbers that indicated a durable economic franchise. Packaged foods is a fiercely competitive industry, and this company shows no real moat. The P/E is 62.25 and the PEG ratio is 3.39, meaning the market is already paying a heavy price for future growth. Yet profit growth is only 10%, while sales grew 26.7%. That gap tells me the revenue is not converting into shareholder earnings. The latest quarter makes the point forcefully: ₹14 Cr of sales and zero net profit. No dividend is offered, so income investors get no support while they wait. The F-Score of 7/9 is a positive sign—it suggests the balance sheet is not collapsing—but it is not enough. I cannot rely on promoter holding or debt figures because they are marked N/A, which adds uncertainty rather than comfort. At this price, there is no margin of safety. I would not call it a wonderful business at a fair price; it is a modest business at an optimistic price. If the company can translate its sales growth into real profits, improve returns on equity and capital, and show consistent quarterly earnings, the picture would improve. Until then, this stays on my watch list, not in my portfolio.

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