Pace E-Commerce (543637)

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

Key Financials

Strengths

• Sales growth of 59% and profit growth of 58.09% show strong, consistent momentum.
• P/E of 8.27 with PEG of 0.14 suggests the market is pricing the stock cheaply relative to its growth.
• Piotroski F-Score of 7/9 indicates reasonably healthy financials and operational efficiency.
• Latest quarter is profitable with ₹42 Cr sales and ₹2 Cr net profit, showing no immediate business distress.

Concerns

• ROCE of only 6.53% is low for a fast-growing business and raises doubts about long-term value creation.
• Critical data missing: ROE, book value, debt/equity, and promoter holding — making governance and balance sheet risk hard to assess.
• Net margin around 4.8% is thin and vulnerable to competitive pressure in e-retail.
• No dividend means total return depends entirely on continued growth and future re-rating.

AI Analysis

Let me start with what I can see. Pace E-Commerce trades at ₹27.60 with a market cap of ₹62 crore, and it is growing quickly: sales and profit both advanced about 59% and 58%. At a P/E of 8.27, the market is paying a single-digit multiple for that growth. A PEG ratio of 0.14 makes the bait look irresistibly cheap. But Graham taught me never to buy on a number alone. The latest quarter shows sales of ₹42 crore and net profit of ₹2 crore — a net margin near 4.8%, thin for comfort. The company's ROCE is only 6.53%, which tells me it earns little on the capital employed. A business growing at 50% while earning that kind of return is often eating cash, not compounding value. The Piotroski score of 7/9 is reassuring; it points to acceptable financial health, but I cannot see book value, debt-to-equity, promoter holding, or ROE. Data marked N/A means my circle of confidence remains limited. The dividend yield is zero, so all value has to come from growth and eventual market recognition — a two-factor bet. In an e-retail market with low barriers and fierce price competition, a 4.8% net margin can vanish quickly. Still, at this price, much of the pessimism may be baked in. If the company can keep growing at a high rate and push ROCE higher, the current P/E offers margin of safety. But I would wait for better disclosure before treating this as a Buffett-style business. It looks more like a fast-growing, capital-hungry small-cap at a bargain price — an interesting Graham-type price-to-growth situation, not a wide-moat stalwart.

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