Pacific Industries Limited

Basic Materials — Building Materials · NSE

₹143.90+₹4.91 (+3.53%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Pacific Industries Limited, together with its subsidiaries, engages in the manufacture and trading of granite tiles and slabs, and quartz slabs in India. The company also provides marbles.

IndustryBuilding Materials

SectorBasic Materials

Employees129

Annual revenue₹152 Cr

How does it make money?

Turns over ₹152 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 129 employees supports ₹1.18 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin9.9%

Net margin1.3%

Revenue / employee₹1.18 Cr

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

GRASIM INDUSTRIES LTDP/E 34.8x · ROE 5.5%

AMBUJA CEMENTS LTDP/E 20.4x · ROE 7.4%

SHREE CEMENT LIMITEDP/E 49.7x · ROE 7.0%

What is its competitive advantage?Little sign of one

Returns on capital of 1.2% 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.

ROCE1.2%

ROE0.4%

Peer median ROE7.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -18% while net margin moved -63% 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-18%

Margin effect-63%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 6.3% a year
✗ Profit has declined at 32.6% a year

Quality vs. Valuation

Company Quality

38/ 100

Weak

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

Valuation

55/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

36.1x

Sector Median

36.2x

median of 4 sector peers

🟡Against its sector it is priced broadly in line with the peer median of 36.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

36.2x median of 4 peers · -0%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

36.1x

P/B

0.23x

EV/EBITDA

10.4x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 12.5% to 9.9% over 3 years.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.9x to 1.4x.
🟡Profit is decliningFinancial
Net profit is down 69% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.6 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹3 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 12.5% to 9.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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

1EBITDA margin holds above 8%✓ 9.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 1.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 10 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

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹99 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

36.1x

Fair

Fairly valued against the generic band

P/B Ratio

0.23x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.99

Profitable

Profitable on a per-share basis

ROE

0.4%

Weak

Weak capital efficiency

ROCE

1.2%

Weak

Low return on total capital employed

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

28.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

82.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹143.9

Operating Margin

0.9%

Weak

Thin margins leave little room for error

Net Margin

1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.89

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

RSI (14)

48.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹185 Cr	₹188 Cr	₹240 Cr	₹152 Cr	-6.3%
EBITDA	₹23 Cr	₹29 Cr	₹25 Cr	₹15 Cr	-13.4%
EBITDA Margin	12.5%	15.3%	10.2%	9.9%	—
PAT (Net Profit)	₹7 Cr	₹12 Cr	₹8 Cr	₹2 Cr	-32.6%
EPS	₹17.06	₹17.23	₹11.1	₹2.89	-44.7%
ROE	1.5%	2.7%	1.7%	0.4%	—
ROCE	2.7%	3.8%	3.1%	1.2%	—
Total Debt	₹56 Cr	₹50 Cr	₹73 Cr	₹59 Cr	+1.7%
Free Cash Flow	₹3 Cr	₹24 Cr	-₹15 Cr	₹3 Cr	-3.0%

🔴 Revenue has shrunk at 6.3% a year over 3 years.

🔴 EBITDA has shrunk at 13.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 12.5% to 9.9% over 3 years (-2.6 pts).

🔴 PAT (Net Profit) has shrunk at 32.6% a year over 3 years.

🔴 EPS has shrunk at 44.7% a year over 3 years.

🔴 ROE has fallen from 1.5% to 0.4% over 3 years (-1.1 pts).

🔴 ROCE has fallen from 2.7% to 1.2% over 3 years (-1.5 pts).

🟡 Total Debt has been broadly flat over 3 years (1.7% a year).

🔴 Free Cash Flow has shrunk at 3.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹552 Cr

Total Liabilities

₹109 Cr

Total Debt

₹59 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.6%

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

1 positive1 mixed4 general

Pacific Industries Ltd Upgraded to Sell on Technical Improvements Despite Weak Fundamentals

MarketsMojo, 15 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

At RM42.00, Is It Time To Put Malaysian Pacific Industries Berhad (KLSE:MPI) On Your Watch List?

Simply Wall Street, 15 Oct

Pacific Industries Ltd. (NSE: PACIFICI) Falls 5.40% as Stock Movement Draws Market Attention

Kalkine India, 21 Sept

Pacific Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Pacific Industries Q1 FY27 Results: Revenue Rs 63 Cr, PAT Rs 1 Cr and Key Highlights

Univest, 12 AugResults

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

Asia-Pacific Industrial Control & Factory Automation Market Size, Share,Trends, Growth Analysis Report, 2030

MarketsandMarkets, 15 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong14.2/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak4.5/15

🟡ValuationFair9.5/15

🔴RiskHigh4.4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 8%9.9%
✗Debt / EBITDA falls below 3x3.9x
✗Interest cover stays above 3x1.4x
✓Free cash flow remains positive₹3 Cr
✗ROCE stays above 8%1.2%