Pace E-Commerce Ventures Limited

Consumer Cyclical — Internet Retail · BSE

₹15.00+₹0.01 (+0.07%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:49 pm

Understanding the Business

Company site ↗

The 60-second version of Pace E-Commerce Ventures Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Pace E-Commerce Ventures Limited engages in the sale of branded, customized, and personalized products for B2C and B2B customers through digital platforms in India.

IndustryInternet Retail

SectorConsumer Cyclical

Employees37

Annual revenue₹100 Cr

How does it make money?

Turns over ₹100 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 37 employees supports ₹2.70 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.70 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 8.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +253% while net margin moved +72% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+253%

Margin effect+72%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.44 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

88/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

9.0x

3Y Median

23.2x

40 monthly readings · mean 39.6x · range 12.2x–107.2x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 61% below its 3y median of 23.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 87% below the peer median of 69.2x.

vs. its own history

Cheap

23.2x median over 40 months · -61%

vs. sector peers

Cheap

69.2x median of 4 peers · -87%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.4x

PEG

0.11

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 4.6% to 7.9% over 3 years.
Return on equity is rising
ROE has improved from 0.9% to 4.7%.
Return on capital is rising
ROCE has improved from 1.8% to 8.1%.
Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 406% over 3 years, from ₹3 Cr to ₹17 Cr.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 5.7x to 3.8x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 283% against revenue up 253% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.6% to 7.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 61% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 87% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 39% a year✓ 52.2% CAGR
Latest reported year was 26.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹34 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.0x

Cheap

Cheap against the generic band

P/B Ratio

0.42x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.67

Profitable

Profitable on a per-share basis

ROE

4.8%

Weak

Weak capital efficiency

ROCE

8.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

26.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-17.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹8 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

3.2%

Average

Average asset productivity

Operating Margin

3.8%

Weak

Thin margins leave little room for error

Net Margin

3.8%

Average

Average bottom-line conversion

Current Ratio

2.08

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.44

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

15.6 / 15.3

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹28 Cr	₹43 Cr	₹72 Cr	₹100 Cr	+52.2%
EBITDA	₹1 Cr	₹5 Cr	₹6 Cr	₹8 Cr	+82.0%
EBITDA Margin	4.6%	10.8%	9.0%	7.9%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹3 Cr	₹4 Cr	+82.3%
EPS	₹0.28	₹1.06	—	—	—
ROE	0.9%	3.3%	4.3%	4.7%	—
ROCE	1.8%	5.3%	6.6%	8.1%	—
Total Debt	₹3 Cr	₹5 Cr	₹12 Cr	₹17 Cr	+71.7%
Free Cash Flow	-₹42 Cr	₹3 Cr	-₹3 Cr	-₹1 Cr	—

🟢 Revenue has grown at 52.2% a year over 3 years.

🟢 EBITDA has grown at 82.0% a year over 3 years.

🟢 EBITDA Margin has risen from 4.6% to 7.9% over 3 years (+3.3 pts).

🟢 PAT (Net Profit) has grown at 82.3% a year over 3 years.

🟢 ROE has risen from 0.9% to 4.7% over 3 years (+3.8 pts).

🟢 ROCE has risen from 1.8% to 8.1% over 3 years (+6.3 pts).

🔴 Total Debt has grown at 71.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹102 Cr

Total Liabilities

₹22 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

57.0%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 mixed4 general

Pace E-Commerce: Name Change to Aarien, Dairy Diversification

Kalkine India, 12 Oct

PACE E-COMMERCE VENTURES LIMIT Share Price

Upstox, 05 May

Pace E-Commerce Ventures Ltd. (PACE) Share Price Surges 8.23% Today

Univest, 27 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Nykaa shares in focus after strong Q2 update | What lies ahead for investors?

Livemint, 05 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Pace E-Commerce Ventures Limited Announces Directorate Appointments

marketscreener.com, 01 Oct

Pace E-Commerce appoints Aditya Patel as additional director

scanx.trade, 22 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingFinancial Health · Profitability

WeakBusiness Quality · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑