BSE:538963

Stock Analysis Report

Executive Summary

Pact Industries Limited engages in the non alloys steel ingots manufacturing and knitted cloth trading businesses in India.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.

Share Price & News

How has Pact Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

538963

0.9%

IN Metals and Mining

0.5%

IN Market


1 Year Return

-42.5%

538963

-31.9%

IN Metals and Mining

0.9%

IN Market

Return vs Industry: 538963 underperformed the Indian Metals and Mining industry which returned -31.9% over the past year.

Return vs Market: 538963 underperformed the Indian Market which returned 0.9% over the past year.


Share holder returns

538963IndustryMarket
7 Day0%0.9%0.5%
30 Day-0.5%-4.2%1.0%
90 Day-5.7%-15.4%-3.2%
1 Year-42.5%-42.5%-29.0%-31.9%2.8%0.9%
3 Year-65.5%-65.5%0.04%-11.2%20.3%14.3%
5 Yearn/a4.6%-12.7%43.1%29.8%

Price Volatility Vs. Market

How volatile is Pact Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Pact Industries undervalued based on future cash flows and its price relative to the stock market?

33.66x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: Insufficient data to calculate 538963's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 538963's fair value to establish if it is undervalued.


Price Based on Earnings

PE vs Industry: 538963 is poor value based on its PE Ratio (33.7x) compared to the Metals and Mining industry average (8.3x).

PE vs Market: 538963 is poor value based on its PE Ratio (33.7x) compared to the Indian market (13.1x).


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate 538963's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: 538963 is overvalued based on its PB Ratio (1.3x) compared to the IN Metals and Mining industry average (0.8x).


Next Steps

Future Growth

How is Pact Industries expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

32.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 538963's forecast earnings growth (32.4% per year) is above the savings rate (7.6%).

Earnings vs Market: 538963's earnings (32.4% per year) are forecast to grow faster than the Indian market (18.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 538963's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 538963's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if 538963's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pact Industries performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 538963's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: 538963's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 538963 had negative earnings growth (-43.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (14.3%).


Return on Equity

High ROE: 538963's Return on Equity (1.7%) is considered low.


Return on Assets

ROA vs Industry: 538963's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: 538963's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Pact Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 538963's short term assets (₹226.5M) exceeds its short term liabilities (₹149.3M)

Long Term Liabilities: 538963's short term assets (226.5M) exceeds its long term liabilities (2.5M)


Debt to Equity History and Analysis

Debt Level: 538963's debt to equity ratio (50.5%) is considered high

Reducing Debt: 538963's debt to equity ratio has reduced from 126.4% to 50.5% over the past 5 years.

Debt Coverage: Insufficient data to determine if 538963's debt is well covered by operating cash flow.

Interest Coverage: 538963's interest payments on its debt are not well covered by EBIT (0.1x coverage).


Balance Sheet

Inventory Level: 538963 has a high level of physical assets or inventory.

Debt Coverage by Assets: 538963's debt is covered by short term assets (assets are 4.943670x debt).


Next Steps

Dividend

What is Pact Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate 538963's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 538963's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 538963's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 538963's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 538963's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Pact Industries's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average board tenure


CEO

Harpreet Singh Takkar 0

0yrs

Tenure

₹500,000

Compensation

Mr. Harpreet Singh Takkar serves as the Managing Director at Pact Industries Limited and has been its Executive Director since March 31, 1993. Mr. Singh has more than 26 years of Managerial and Administrat ...


CEO Compensation Analysis

Compensation vs. Market: Harpreet's total compensation ($USD7.05K) is too low to compare against companies of similar size in the Indian market ($USD25.38K).

Compensation vs Earnings: Harpreet's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Age and Tenure

2.9yrs

Average Tenure

43yo

Average Age

Experienced Board: 538963's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Harpreet Singh Takkar

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹500.00k
  • Sanjay Jain

    Chief Financial Officer

    • Tenure: 4.1yrs
  • Amninder Kaur

    Company Secretary & Compliance Officer

    • Tenure: 0.08yrs

Board Members

  • Avtar Singh

    Chairman of the Board

    • Tenure: 0yrs
  • Harpreet Singh Takkar

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹500.00k
  • Jasjeet Kaur (46yo)

    Independent & Non-Executive Director

    • Tenure: 4.6yrs
  • Sunil Singh (43yo)

    Independent Director

    • Tenure: 1.2yrs
  • Eshaan Singh Takkar (26yo)

    Additional Director

    • Tenure: 0.4yrs

Company Information

Pact Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pact Industries Limited
  • Ticker: 538963
  • Exchange: BSE
  • Founded: 1993
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹118.573m
  • Shares outstanding: 55.41m
  • Website: https://pactindustries.com

Location

  • Pact Industries Limited
  • Bilga Road Sahnewal Khurd
  • Ludhiana
  • Punjab
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
538963BSE (Mumbai Stock Exchange)INR1ININRNo data
538963BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2015

Biography

Pact Industries Limited engages in the non alloys steel ingots manufacturing and knitted cloth trading businesses in India. It also imports scrap metals, as well as recycles and supplies steel and alloy pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:50
End of Day Share Price2019/10/07 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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