Panasonic Carbon India Co. Limited

Technology — Electronic Components · BSE

₹398.85+₹2.45 (+0.62%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Panasonic Carbon India Co. Limited manufactures and sells carbon rods as a component of dry cell batteries to battery manufacturers in India and internationally. It also manufactures custom size roads.

IndustryElectronic Components

SectorTechnology

Employees136

Annual revenue₹54 Cr

How does it make money?

Turns over ₹54 Cr a year. Of every ₹100 of sales, about ₹39 reaches shareholders as profit, with ₹34 left at the operating level before interest, tax and depreciation. Each of its 136 employees supports ₹39.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹39.6 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 9.3% 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.

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 +9% while net margin moved +52% 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+9%

Margin effect+52%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 2.9% — barely ahead of inflation
✓ Profit CAGR of 18.3% is above 15%
✗ Latest-year revenue growth of -30.1% is below the longer-term trend — momentum is fading
✗ Profit fell 32.4% in the latest year

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

83/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

10.0x

3Y Median

13.3x

40 monthly readings · mean 13.8x · range 8.9x–19.9x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 25% below its 3y median of 13.3x. 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 40% below the peer median of 16.5x.

vs. its own history

Cheap

13.3x median over 40 months · -25%

vs. sector peers

Cheap

16.5x median of 4 peers · -40%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.5x

PEG

0.54

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 22.0% to 33.7% over 3 years.
Return on capital is rising
ROCE has improved from 7.0% to 9.3%.
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

2 items require attention · 2 watch

🟡Receivables growing faster than salesFinancial
Receivables up 59% against revenue up 9% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 43% against revenue up 9% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 22.0% to 33.7%. 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 25% 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 40% 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?

Sales are being booked faster than collected
Receivables are up 59% against revenue up 9%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 2.9% 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.
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 32%✓ 33.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 2.9% CAGR
Latest reported year was -30.1%. 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.
4ROCE stays above 8%✓ 9.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 13.3x✓ 10.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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
✓ 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 · 4 neutral · 2 weak

Market Cap

₹191 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.0x

Cheap

Cheap against the generic band

P/B Ratio

1.02x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹39.99

Profitable

Profitable on a per-share basis

ROE

11.3%

Moderate

Moderate capital efficiency

ROCE

9.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-30.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-32.4%

Falling

Profits are shrinking

Dividend Yield

3.01%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

22.0%

Good

Healthy core-business profitability

Net Margin

38.4%

Good

Strong bottom-line conversion

Current Ratio

29.20

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

398.1 / 421.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹49 Cr	₹50 Cr	₹53 Cr	₹54 Cr	+2.9%
EBITDA	₹11 Cr	₹15 Cr	₹17 Cr	₹18 Cr	+18.6%
EBITDA Margin	22.0%	30.3%	31.6%	33.7%	—
PAT (Net Profit)	₹13 Cr	₹19 Cr	₹21 Cr	₹21 Cr	+18.3%
EPS	₹26.72	₹38.73	₹43.39	₹44.25	+18.3%
ROE	8.9%	11.9%	12.1%	11.3%	—
ROCE	7.0%	9.3%	9.4%	9.3%	—
Free Cash Flow	₹9 Cr	₹2 Cr	₹8 Cr	₹11 Cr	+5.7%

🟢 Revenue has grown at 2.9% a year over 3 years.

🟢 EBITDA has grown at 18.6% a year over 3 years.

🟢 EBITDA Margin has risen from 22.0% to 33.7% over 3 years (+11.7 pts).

🟢 PAT (Net Profit) has grown at 18.3% a year over 3 years.

🟢 EPS has grown at 18.3% a year over 3 years.

🟢 ROE has risen from 8.9% to 11.3% over 3 years (+2.4 pts).

🟢 ROCE has risen from 7.0% to 9.3% over 3 years (+2.3 pts).

🟢 Free Cash Flow has grown at 5.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹194 Cr

Total Liabilities

₹6 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹11 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.3%

Corporate Actions

Dividend Rate

₹12

Ex-Dividend Date

22 Jun 2026

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

2 positive1 mixed3 general

Panasonic Carbon India Company Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 11 Sept

Panasonic Carbon India Q1 FY27 Results: PAT Rs 4 Cr, Revenue Rs 11 Cr

Univest, 14 AugResults

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

Panasonic Carbon India reports 2% rise in FY26 net profit

scanx.trade, 05 Jun

Panasonic Carbon India Company Ltd. is Rated Strong Sell

MarketsMojo, 07 Oct

Dividend stocks: LIC, Asian Paints, 28 others to remain in focus next week

Business Standard, 19 JunCapital return

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

Dividend Stocks To Watch This Week: Asian Paints, HUL, Tata Power, LIC, Sona BLW — Check Amount, Record Date

NDTV Profit, 21 JunCapital return

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

Watch Items

Revenue growth is negative (-30.1%) on the latest reported period — check if this is one-off or a trend.
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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑