Perfectpac (526435)
CyclicalScore breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹117.05 |
| Market Cap | ₹77.95 Cr |
| P/E Ratio | 18.62 |
| ROCE | 11.93% |
| ROE | 8.47% |
| Dividend Yield | 1.18% |
| Profit Growth | -107.35% |
| Debt/Equity | — |
| Sales Growth | -3.32% |
| 52-Week Range | ₹72.7 — ₹117.05 |
| Sector | Paper, Forest & Jute Products |
| Book Value | ₹55.19 |
Strengths
- Book value of ₹55.19 per share provides a tangible asset reference point.
- ROCE of 11.93% exceeds ROE of 8.47%, indicating reasonable operational returns before financing effects.
- Dividend yield of 1.18% shows some cash is being returned to shareholders.
- Market cap of ₹78 Cr against ₹25 Cr quarterly sales keeps the price-to-sales ratio moderate.
Concerns
- Profit growth of -107.35% and latest quarter net profit near ₹0 Cr signal a collapse in earnings.
- Sales declining at -3.32% with no visible reversal.
- Piotroski F-score of 3/9 highlights deteriorating financial health.
- Trading at 2.12 times book value and a 52-week high despite weak fundamentals suggests speculative optimism.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer