Pentokey Organy (India) Limited

Basic Materials — Chemicals · BSE

₹30.90−₹1.68 (−5.16%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 Pentokey Organy (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Pentokey Organy (India) Limited engages in trading of pharmaceutical products in India. It also trades fertilizers and pesticides products. Pentokey Organy (India) Limited was incorporated in 1986 and is based in Mumbai, India.

IndustryChemicals

SectorBasic Materials

Employees3

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹69.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin9.7%

Net margin9.7%

Revenue / employee₹69.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Little sign of one

Returns on capital of 2.1% 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.

ROCE2.1%

ROE2.1%

Peer median ROE15.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -52% while net margin moved -87% 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-52%

Margin effect-87%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 21.8% a year
✗ Profit has declined at 60.0% a year
✗ Profit fell 64.6% in the latest year

Quality vs. Valuation

Company Quality

35/ 100

Weak

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

Valuation

30/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.79x

EV/EBITDA

94.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of -0.07x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 27.7% to 9.7% over 3 years.
Return on equity is falling
ROE has dropped from 37.9% to 2.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 38.2% to 2.1% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 699% against revenue growth of -52% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 59% against revenue growth of -52% — stock may not be moving.
Short-term liquidity is tight
Current ratio of -30.87 — near-term obligations exceed near-term assets.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 17.9 points, from 27.7% to 9.7%.
🔴Receivables growing faster than salesFinancial
Receivables up 699% against revenue up -52% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 59% against revenue up -52% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 94% over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of -30.87 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 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 27.7% to 9.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 699% against revenue up -52%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 37.9% to 2.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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
3 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%✓ 9.7%
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.
3Debt / EBITDA stays below 2x✓ -0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 2.1%
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

₹19 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.79x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.35

Loss-making

Negative earnings per share — the business is losing money

ROE

2.1%

Weak

Weak capital efficiency

ROCE

2.1%

Weak

Low return on total capital employed

Debt/Equity

-0.07x

Low

Conservative leverage

Revenue Growth (YoY)

153.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-64.6%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹30.9

Operating Margin

17.3%

Good

Healthy core-business profitability

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

-30.87

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

33.7 / 33.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹4 Cr	₹1 Cr	₹2 Cr	-21.8%
EBITDA	₹1 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-44.8%
EBITDA Margin	27.7%	20.7%	30.3%	9.7%	—
PAT (Net Profit)	₹3 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-60.0%
EPS	₹5.06	₹1.39	₹0.39	₹0.38	-57.8%
ROE	37.9%	9.4%	2.6%	2.1%	—
ROCE	38.2%	9.5%	2.6%	2.1%	—
Free Cash Flow	-₹0 Cr	₹1 Cr	₹0 Cr	₹1 Cr	—

🔴 Revenue has shrunk at 21.8% a year over 3 years.

🔴 EBITDA has shrunk at 44.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 27.7% to 9.7% over 3 years (-17.9 pts).

🔴 PAT (Net Profit) has shrunk at 60.0% a year over 3 years.

🔴 EPS has shrunk at 57.8% a year over 3 years.

🔴 ROE has fallen from 37.9% to 2.1% over 3 years (-35.8 pts).

🔴 ROCE has fallen from 38.2% to 2.1% over 3 years (-36.1 pts).

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9 Cr

Total Liabilities

-₹0 Cr

Total Debt

-₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

2.2%

Insider Holding

80.8%

Corporate Actions

Ex-Dividend Date

05 Aug 2013

Peer Comparison

Company	P/E	ROE
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive1 mixed4 general

Pentokey Organy (India) Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Pentokey Organy appoints Kavita Bohra as independent director

scanx.trade, 13 Aug

Pentokey Organy (India) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Pentokey Organy declares 39th AGM voting results; all resolutions pass

scanx.trade, 26 SeptResults

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

Bloom Industries standalone net profit rises 53.85% in the June 2026 quarter

Business Standard, 13 AugResults

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

Pentokey Organy schedules 39th AGM for September 26, 2026

scanx.trade, 06 Sept

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.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🟢Financial HealthStrong14.6/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair7.1/15

🟡RiskModerate5.2/10

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

This thesis breaks if

✓EBITDA margin holds above 8%9.7%
✓Free cash flow remains positive₹1 Cr
✓Debt / EBITDA stays below 2x-0.0x
✗ROCE stays above 8%2.1%