Panabyte Tech (538742)

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

Key Financials

Strengths

• Book value of ₹6.41 per share gives the stock a measurable asset base.
• Latest quarter still recorded ₹2 Cr of sales, so the company remains an operating business.
• ROCE of 8.23% is above ROE of 5.60%, indicating the broader capital base is earning more than equity alone.

Concerns

• Sales growth is -50.70% and profit growth is -60.00%, with latest quarterly net profit at ₹0 Cr.
• P/E of 112.50 and P/B of 3.78 leave a very thin margin of safety for a business with weak current earnings.
• Piotroski F-Score of 3/9 signals poor fundamental health, and ROE of 5.60% is far from attractive.
• Zero dividend yield means shareholders get no income while waiting, and promoter holding is not disclosed.

AI Analysis

Let me begin with what I can measure. Panabyte Tech sells at ₹24.25 with a market cap of just ₹11 Cr. That sounds like a tiny business, but smallness is not a moat. Sales have collapsed by 50.70% and profits by 60.00%. In the latest quarter, sales were only ₹2 Cr and net profit was effectively zero. A P/E of 112.50 on such earnings is not an investment; it is a hope. Benjamin Graham taught me to pay a reasonable price for a good business. Here I pay 3.78 times book value, while book value itself is only ₹6.41. For that premium, I get an ROE of 5.60% and an ROCE of 8.23%. That return does not excite me. The Piotroski F-Score of 3/9 reinforces the picture of weak fundamentals. There is no dividend yield to reward a patient shareholder while waiting for a recovery. With promoter holding unavailable, I cannot judge whether the people in control have their own wealth at risk alongside minority shareholders. The price sits near the bottom of its 52-week range of ₹24.00 to ₹47.94, but a depressed price is not automatically a bargain. A falling knife can cut deeper. In Graham's language, the margin of safety is absent: the premium to book is high, earnings are shrinking, and the latest quarter shows no profit. This is not a business I can confidently value or understand as a durable compounder. I would need clear evidence that revenue has stabilised, that margins can return to a healthy level, and that management has a credible plan to deploy capital. Until then, I will pass. Accepting a low available price is not necessary when the business quality and financial health are both below average. The market sometimes offers wonderful businesses at attractive prices; this is not one of those moments.

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