Perfectpac (526435)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹117.05, the market is valuing Perfectpac at ₹78 crore. The trailing P/E of 18.62 looks optically cheap, but that is an illusion—profit growth has collapsed by 107.35%, and the latest quarter's net profit is effectively zero. Graham would call this a speculative situation, not an investment. Paper is a cyclical, capital-intensive business, and this small player has no moat. Return on equity is only 8.47%, and while ROCE comes in at 11.93%, neither justifies paying 2.12 times book value of ₹55.19. Sales have been shrinking by 3.32%, and the Piotroski F-score of 3 out of 9 is a serious red flag for financial health. The dividend yield of 1.18% offers scant compensation for the risk. The stock sits at its 52-week high of ₹117.05, which seems more a product of hope than underlying earnings power. With debt-to-equity not disclosed, I cannot even fully assess the balance sheet risk. As Buffett says, it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Perfectpac is neither wonderful nor fairly priced. For a small-cap paper producer in a downturn, I need a deep discount to book value and a clear path to recovering profits. Today, I see neither. I'd rather patiently wait for a better bargain. This one fails my margin-of-safety test.

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