Panasonic Energy India Co. Ltd.

Industrials — Electrical Equipment & Parts · BSE

₹238.00−₹3.50 (−1.45%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, 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, with modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Panasonic Energy India Co. Ltd. — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Panasonic Energy India Co. Ltd. manufactures and supplies dry cell batteries and lighting products in India and internationally. The company offers zinc carbon and lithium coin batteries.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees688

Annual revenue₹269 Cr

How does it make money?

Turns over ₹269 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 688 employees supports ₹39.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin5.3%

Net margin1.3%

Revenue / employee₹39.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?Little sign of one

Returns on capital of 5.3% 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.

ROCE5.3%

ROE3.4%

Peer median ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +6% while net margin moved -131% 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+6%

Margin effect-131%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 51.2x is demanding — it needs sustained high growth to justify
✗ P/E is 117% above its own historical median of 23.6x — expensive by its own standards

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

51/ 100

Fair

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

51.2x

2Y Median

23.6x

28 monthly readings · mean 27.6x · range 16.1x–56.6x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 117% above its 2y median of 23.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 42% below the peer median of 88.8x.

vs. its own history

Expensive

23.6x median over 28 months · +117%

vs. sector peers

Cheap

88.8x median of 3 peers · -42%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

51.2x

P/B

1.73x

EV/EBITDA

12.5x

PEG

—

Dividend Yield

0.82%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -1.6% to 5.3% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -11.6% to 3.4%.
Return on capital is rising
ROCE has improved from -14.6% to 5.3%.

🔴 What Needs Attention1

Valuation above its historical average
At 51.2x the stock trades 117% above its own median of 23.6x.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -1.6% to 5.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 42% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 117% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 2.1% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 3%✓ 5.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 2.1% CAGR
Latest reported year was 9.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 5.3%
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

3 good · 5 neutral · 3 weak

Market Cap

₹178 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

51.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.73x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.65

Profitable

Profitable on a per-share basis

ROE

3.4%

Weak

Weak capital efficiency

ROCE

5.3%

Weak

Low return on total capital employed

Debt/Equity

1.33x

Moderate

Moderate leverage

Revenue Growth (YoY)

9.5%

Modest

Modest growth

Profit Growth (YoY)

97.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.82%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹238

Operating Margin

2.5%

Weak

Thin margins leave little room for error

Net Margin

1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.67

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

244.6 / 253.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹253 Cr	₹292 Cr	₹268 Cr	₹269 Cr	+2.1%
EBITDA	-₹4 Cr	₹19 Cr	₹23 Cr	₹14 Cr	—
EBITDA Margin	-1.6%	6.6%	8.6%	5.3%	—
PAT (Net Profit)	-₹11 Cr	₹12 Cr	₹12 Cr	₹3 Cr	—
EPS	₹-14.18	₹15.52	₹15.7	₹4.65	—
ROE	-11.6%	11.3%	10.9%	3.4%	—
ROCE	-14.6%	14.6%	15.9%	5.3%	—
Total Debt	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-0.1%
Free Cash Flow	-₹11 Cr	₹23 Cr	-₹0 Cr	₹11 Cr	—

🟢 Revenue has grown at 2.1% a year over 3 years.

🟢 EBITDA has turned positive, from -₹4 Cr to ₹14 Cr.

🟢 EBITDA Margin has risen from -1.6% to 5.3% over 3 years (+6.9 pts).

🟢 PAT (Net Profit) has turned positive, from -₹11 Cr to ₹3 Cr.

🟢 EPS has turned positive, from ₹-14.18 to ₹4.65.

🟢 ROE has risen from -11.6% to 3.4% over 3 years (+15.0 pts).

🟢 ROCE has risen from -14.6% to 5.3% over 3 years (+19.9 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.1% a year).

🟢 Free Cash Flow has turned positive, from -₹11 Cr to ₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹146 Cr

Total Liabilities

₹43 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹13 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.1%

Corporate Actions

Dividend Rate

₹1.95

Ex-Dividend Date

04 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive5 general

Panasonic Energy India sets Sep 14 AGM; proposes ₹1.95 dividend

scanx.trade, 14 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Panasonic Energy India Company Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Panasonic Energy India Company Ltd is Rated Sell

MarketsMojo, 06 Oct

Panasonic's battery manufacturing unit fears shutdown over waste rules

Business Standard, 25 Jun

Panasonic Energy India Company 52 Week Low Streak Explained

Univest, 07 Oct

Panasonic Energy India Company Ltd

Equitypandit, 20 Feb

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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

🔴Business QualityWeak8.7/20

🟢Financial HealthStrong15.2/20

🔴GrowthWeak7.6/20

🟡ProfitabilityModerate7.1/15

🔴ValuationDemanding4.9/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓EBITDA margin holds above 3%5.3%
✗Revenue growth stays above 4% a year2.1% CAGR
✓Free cash flow remains positive₹11 Cr
✓Debt / EBITDA stays below 2x0.1x
✗ROCE stays above 8%5.3%