Panabyte Technologies Limited

Technology — Electronics & Computer Distribution · BSE

₹16.62+₹0.79 (+4.99%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Panabyte Technologies Limited engages in the trading of consumer electronic and electrical goods, and IT hardware and its peripherals in India.

IndustryElectronics & Computer Distribution

SectorTechnology

Employees41

Annual revenue₹9 Cr

How does it make money?

Turns over ₹9 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 41 employees supports ₹21.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹21.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. 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 7.7% 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 ROE32.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -1% while net margin moved -127% 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-1%

Margin effect-127%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.4% a year
✗ Latest-year revenue growth of -54.2% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

46/ 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

127.8x

1.3Y Median

168.2x

16 monthly readings · mean 156.1x · range 72.3x–265.6x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 24% below its 1.3y median of 168.2x. 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 673% above the peer median of 16.5x.

vs. its own history

Cheap

168.2x median over 16 months · -24%

vs. sector peers

Expensive

16.5x median of 4 peers · +673%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

16.8x

PEG

3.93

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 2.7% to 9.9% over 3 years.
Return on equity is rising
ROE has improved from -15.2% to 1.6%.
Return on capital is rising
ROCE has improved from -6.4% to 7.7%.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 2 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹2 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 52% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 2.7% to 9.9%. 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 24% 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.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 673% above the peer median. That premium needs a reason that persists, or it closes.
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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 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✗ 4.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 7.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

4 good · 2 neutral · 5 weak

Market Cap

₹11 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

127.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.30x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.13

Profitable

Profitable on a per-share basis

ROE

1.6%

Weak

Weak capital efficiency

ROCE

7.7%

Weak

Low return on total capital employed

Debt/Equity

0.46x

Low

Conservative leverage

Revenue Growth (YoY)

-54.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

32.6%

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

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-32.2%

Weak

Thin margins leave little room for error

Net Margin

0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.84

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.15

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

18.1 / 17.2

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

20.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9 Cr	₹4 Cr	₹8 Cr	₹9 Cr	-0.4%
EBITDA	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+53.8%
EBITDA Margin	2.7%	5.9%	8.2%	9.9%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹0 Cr	₹0 Cr	—
EPS	₹-1.02	₹-1.04	₹0.17	₹0.21	—
ROE	-15.2%	-18.4%	1.9%	1.6%	—
ROCE	-6.4%	-6.1%	10.8%	7.7%	—
Total Debt	₹3 Cr	₹3 Cr	₹4 Cr	₹3 Cr	+1.3%
Free Cash Flow	-₹0 Cr	₹1 Cr	-₹2 Cr	-₹2 Cr	—

🟡 Revenue has been broadly flat over 3 years (-0.4% a year).

🟢 EBITDA has grown at 53.8% a year over 3 years.

🟢 EBITDA Margin has risen from 2.7% to 9.9% over 3 years (+7.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-1.02 to ₹0.21.

🟢 ROE has risen from -15.2% to 1.6% over 3 years (+16.8 pts).

🟢 ROCE has risen from -6.4% to 7.7% over 3 years (+14.2 pts).

🟡 Total Debt has been broadly flat over 3 years (1.3% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹16 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

53.5%

Corporate Actions

Ex-Dividend Date

19 Sept 2019

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 mixed5 general

Compare with

Equitymaster, 11 Oct

Panabyte Technologies Secures ₹11.62 Lakh Order from Mahindra & Mahindra for Face Recognition Systems

scanx.trade, 27 Jan

Panabyte Technologies stock jumps after receiving order from Govt of India

Alice Blue, 25 Aug

Panabyte Technologies Limited (538742) Company Information

Simply Wall Street, 12 May

Panabyte Technologies Shareholders Approve 2.95 Lakh Equity Share Preferential Issue

scanx.trade, 30 Oct

Panabyte Technologies (BSE:538742) Stock Forecast & Analyst Predictions

Simply Wall Street, 12 MayAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Revenue growth is negative (-54.2%) on the latest reported period — check if this is one-off or a trend.
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

MiddlingFinancial Health · Profitability · Valuation

WeakBusiness Quality · Growth · Risk

Points for each in the Score ↑

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. 2 high-severity red flags sit above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑