Shree Pacetronix (527005)

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

Key Financials

Strengths

• Sales growth of 19.28% shows encouraging demand traction in the medical equipment niche.
• Profit growth of 154.55% and a PEG ratio of 0.21 suggest potential undervaluation relative to growth.
• Piotroski F-score of 7/9 indicates generally sound fundamentals and improving financial health.
• ROE of 18.54% is solid, implying efficient use of retained equity at a broad level.

Concerns

• Latest quarter shows net profit of ₹0 Cr on sales of ₹4 Cr, signaling a sharp recent deterioration in profitability.
• ROCE of just 9.12% is far below ROE, indicating poor return on capital employed and possible earnings quality issues.
• Dividend yield of 0.00% means no income cushion for shareholders in a small-cap, volatile stock.
• Promoter holding is not disclosed, leaving a significant governance and alignment blind spot for a ₹64 Cr company.

AI Analysis

This is a small, niche medical equipment company, and small caps demand extra caution. At ₹168.25, the market cap is just ₹64 Cr, with a P/E of 18.52 and a P/B of 4.50 against a book value of ₹37.43. The ROE of 18.54% is respectable, but the ROCE of only 9.12% tells me the return on capital is far less impressive—suggesting either heavy cash holdings or non-operating income inflating equity returns. Sales growth of 19.28% and a 154.55% jump in profits look exciting, but I remember that a 155% profit rise from a tiny base can be misleading. More concerning is the latest quarter: sales of ₹4 Cr and net profit of essentially ₹0 Cr. That is a red flag on momentum and quality. The Piotroski F-score of 7/9 is encouraging, and the PEG of 0.21 suggests the market is pricing in strong growth. But I never pay for growth without durability. There is no dividend yield to cushion risk, and promoter holding is not disclosed—another lack of transparency. The 52-week range of ₹90 to ₹283 shows this stock is volatile and speculative. At this valuation, I am getting a decent business with strong sales momentum but weak recent profitability and questionable capital efficiency. My circle of competence is wide, but this one is hard to analyze on such limited data. I would need to know why the latest quarter collapsed, what the debt position truly is, and who owns the company. Without that, the margin of safety is thin, not thick.

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