Perfectpac Limited

Consumer Cyclical — Packaging & Containers · BSE

₹75.00−₹3.47 (−4.42%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Perfectpac Limited manufactures and sells corrugated packaging in India.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees130

Annual revenue₹108 Cr

How does it make money?

Turns over ₹108 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 130 employees supports ₹83.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹83.4 lakh

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 10.2% 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.

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 +15% while net margin moved -3% 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+15%

Margin effect-3%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 7.9% is weak

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

66/ 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

20.4x

3Y Median

19.9x

40 monthly readings · mean 20.3x · range 14.6x–30.6x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 19.9x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 70% below the peer median of 69.2x.

vs. its own history

Fair

19.9x median over 40 months · +3%

vs. sector peers

Cheap

69.2x median of 4 peers · -70%

vs. generic bands

Fair

15x–35x

EV/EBITDA

7.6x

PEG

5.67

What's Good / What's Bad

🟢 What's Going Well1

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 · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 8.48x — earnings must service borrowings before shareholders see anything.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 70% 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?

Leverage amplifies any setback
Debt/Equity of 8.48x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 4.7% 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 4%✓ 6.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 4.7% CAGR
Latest reported year was -3.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

2 good · 4 neutral · 5 weak

Market Cap

₹50 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.4x

Fair

Fairly valued against the generic band

P/B Ratio

1.26x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.67

Profitable

Profitable on a per-share basis

ROE

7.9%

Weak

Weak capital efficiency

ROCE

10.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

8.48x

High

High leverage

Revenue Growth (YoY)

-3.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-58.2%

Falling

Profits are shrinking

Dividend Yield

1.33%

Modest

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

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

2.6%

Weak

Thin margins leave little room for error

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.24

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.41

Defensive

Steadier than the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

75.1 / 76.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

53.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹94 Cr	₹101 Cr	₹108 Cr	₹108 Cr	+4.7%
EBITDA	₹6 Cr	₹8 Cr	₹7 Cr	₹7 Cr	+4.3%
EBITDA Margin	6.5%	7.4%	6.1%	6.4%	—
PAT (Net Profit)	₹3 Cr	₹4 Cr	₹3 Cr	₹3 Cr	+3.6%
EPS	₹4.25	₹5.98	₹4.73	₹4.73	+3.6%
ROE	8.9%	11.4%	8.4%	7.9%	—
ROCE	12.0%	15.0%	11.2%	10.2%	—
Total Debt	₹3 Cr	₹1 Cr	₹1 Cr	₹3 Cr	+2.7%
Free Cash Flow	₹4 Cr	₹4 Cr	₹0 Cr	-₹1 Cr	—

🟢 Revenue has grown at 4.7% a year over 3 years.

🟢 EBITDA has grown at 4.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 6.4% over 3 years.

🟢 PAT (Net Profit) has grown at 3.6% a year over 3 years.

🟢 EPS has grown at 3.6% a year over 3 years.

🔴 ROE has fallen from 8.9% to 7.9% over 3 years (-1.0 pts).

🔴 ROCE has fallen from 12.0% to 10.2% over 3 years (-1.8 pts).

🔴 Total Debt has grown at 2.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹56 Cr

Total Liabilities

₹16 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.5%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

09 Sept 2026

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 positive4 general

Perfectpac Ltd Share Price

Business Today, 16 Oct

Perfectpac Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Perfectpac sets Sept 16 AGM; recommends ₹1 dividend

scanx.trade, 16 SeptCapital return

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

Rigid Adhesive Packaging Penny Stocks 2027: 5 Picks

Univest, 23 Sept

Winsome Textile Industries standalone net profit rises 25.80% in the June 2026 quarter

Business Standard, 07 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Perfectpac secures YEIDA land allotment for ₹22.74 crore packaging project

scanx.trade, 25 Sept

Watch Items

Revenue growth is negative (-3.8%) 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.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Financial Health · Risk

WeakGrowth · Profitability

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑