Paushak (PAUSHAKLTD)
TurnaroundFairStock Score: 33/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹740.8 |
| Market Cap | ₹1,826.58 Cr |
| P/E Ratio | 43.09 |
| ROCE | 11.21% |
| ROE | 8.34% |
| Dividend Yield | 0.34% |
| Profit Growth | 25.6% |
| Debt/Equity | 0.16 |
| Sales Growth | 49.5% |
| Promoter Holding | 67.28% |
| 52-Week Range | ₹342.5 — ₹826.95 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹199.18 |
Strengths
- Promoter holding of 67.28% aligns management with minority shareholders.
- Low debt/equity of 0.12 gives a conservative balance sheet.
- Latest quarter is still profitable: ₹6 Cr net profit on ₹49 Cr sales.
- Book value of ₹178.76 per share provides some asset backing.
Concerns
- Profit growth of -59.57% and Piotroski F-Score of 3/9 indicate deteriorating fundamentals.
- P/E of 31.21 and P/B of 2.63 are expensive against ROE of 8.34% and ROCE of 11.21%.
- Sales growth is negative at -0.93%, and dividend yield is just 0.54%.
- Latest quarterly net profit of ₹6 Cr suggests the earnings decline may not be over.
AI Analysis
Paushak is a specialty chemicals company, and I respect the industry, but respect is not a substitute for price discipline. At ₹470.60, the market cap is ₹1,136 Cr. The trailing P/E of 31.21 is high, and it is especially high when profit growth is -59.57%. Benjamin Graham taught me that price is what you pay, value is what you get. Here, I am not getting much value. Book value is ₹178.76 per share; I would pay 2.63 times book for a company earning only 8.34% on equity. That produces a poor return on my purchase price. ROCE at 11.21% does not signal a superior business. Sales have slipped 0.93%, and the latest quarter shows ₹49 Cr revenue and just ₹6 Cr net profit. The Piotroski F-score of 3/9 reinforces my concern: operating and financial health are deteriorating. Debt/equity of 0.12 is good, and promoter holding of 67.28% means owners are aligned, but a conservatively financed weak business is still weak. The dividend yield of 0.54% offers little while I wait. The 52-week range of ₹342.50 to ₹781.80 tells me Mr. Market has already woken up from a dream. At the current price, the market is asking me to pay for recovery that has not yet appeared. A FairStock Score of 0/100 labels this risky; I don't invest based on labels, but the arithmetic agrees. This is a possible turnaround, not a proven one. I will wait for stabilisation in profits or a price closer to the 52-week low. No margin of safety, no purchase.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer