SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Pace E-Commerce Ventures Ltd

BSE: 543637 NSE: ISIN: INE0N1L01018
  |   Sector:  Retail   |   Industry:  e-Commerce

Snapshot

Q.1 Which industry/sub-sector does Pace E-Commerce Ventures Ltd belong to?
Pace E-Commerce Ventures Ltd belongs to the Retail sector, operating specifically within the e-Commerce segment.
Q.2 Is Pace E-Commerce Ventures Ltd a good quality company?
Pace E-Commerce Ventures Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Pace E-Commerce Ventures Ltd undervalued or overvalued?
Pace E-Commerce Ventures Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 8.87 29.93
Price to Book 0.44 0.69
Price to Sales 0.33 1.52
EV to EBITDA 5.75 16.93
Q.4 Is Pace E-Commerce Ventures Ltd a good buy now?
Pace E-Commerce Ventures Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Pace E-Commerce Ventures Ltd?
Pace E-Commerce Ventures Ltd revenue growth is 68.5% for FY-2025, which is below its 5-year CAGR of 117.27%, indicating slower growth.

Q.2 Gross Profit margin of Pace E-Commerce Ventures Ltd?
Pace E-Commerce Ventures Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.3% for FY-2025, which is in line with its 5-year median of 7.2%, indicating stable margins.

Q.3 Operating Profit Margin of Pace E-Commerce Ventures Ltd?
Pace E-Commerce Ventures Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.02% for FY-2025, which is below its 5-year median of 7.71% indicating decreasing margins.

Q.4 Net Profit Margin of Pace E-Commerce Ventures Ltd?
Pace E-Commerce Ventures Ltd Net Profit Margin is 4.59% for FY-2025, is in line with its 5-year median of 4.59%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 7.3 7.2
Operating Profit Margin (%) 6.02 7.71
Net Profit Margin (%) 4.59 4.59

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Pace E-Commerce Ventures Ltd?
Pace E-Commerce Ventures Ltd Return on Asset is 3.71%, which is above its 5-year historical median of 1.8%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Pace E-Commerce Ventures Ltd?
Pace E-Commerce Ventures Ltd Return on capital employed is 6.53% for FY-2025, which is above its 5-year historical median of 3.35%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Pace E-Commerce Ventures Ltd?
Pace E-Commerce Ventures Ltd Return on equity is 4.44% for FY-2025, which is above its 5-year historical median of 2.06%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Pace E-Commerce Ventures Ltd?
Pace E-Commerce Ventures Ltd Cash conversion cycle is 41 days, below its 5-year historical median of 69 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.81 0.53
ROE (%) 4.44 2.06
ROCE (%) 6.53 3.35
Cash Conversion Cycle 41 days 69 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Pace E-Commerce Ventures Ltd?
Pace E-Commerce Ventures Ltd Debt-to-Equity ratio is 0.15, which is above the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Pace E-Commerce Ventures Ltd?
Pace E-Commerce Ventures Ltd Debt to cash flow from operations is -7.4, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Pace E-Commerce Ventures Ltd?

Q.1 Promoter shareholding and pledge status of Pace E-Commerce Ventures Ltd?
Promoters hold 50.92% of the Pace E-Commerce Ventures Ltd, with 41.40% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Pace E-Commerce Ventures Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Pace E-Commerce Ventures Ltd vs industry peers?
Pace E-Commerce Ventures Ltd revenue CAGR is 117.27%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 68.5 0
Gross Profit Growth (%) 43.6 20.6
Operating Profit Growth (%) 31.5 25.4
Net Profit Growth (%) 38.5 30.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.81 0.5
ROE (%) 4.44 10.08
ROCE (%) 6.53 7.66
Cash Conversion Cycle (days) 41.31 9

Valuation & price assessment

Q.1 Stock return of Pace E-Commerce Ventures Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -6.46% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -6.5% -50.4%
Q.2 Valuation ratios of Pace E-Commerce Ventures Ltd vs historical?
The current P/E ratio of 8.87 is lower than its historical median of 29.93, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 8.87 29.93 31.46
Price to Book 0.44 0.69 5.00
Price to Sales 0.33 1.52 7.95
EV to EBITDA 5.75 16.93 18.70

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×