Check Before You Invest : Pace Digitek Ltd

Snapshot

Q.1 Which industry/sub-sector does Pace Digitek Ltd belong to?

Pace Digitek Ltd belongs to the Telecom sector, operating specifically within the Telecom-Infrastructure segment.

Q.2 Is Pace Digitek Ltd a good quality company?

Pace Digitek Ltd is a weak quality company, based on a inconsistent 4-year financial track record.

Q.3 Is Pace Digitek Ltd undervalued or overvalued?

Pace Digitek Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Pace Digitek Ltd a good buy now?

Pace Digitek Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Pace Digitek Ltd?

Pace Digitek Ltd revenue growth is -2.2% for FY-2025, which is below its 3-year CAGR of 137%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Pace Digitek Ltd?

Pace Digitek Ltd Return on capital employed is 43.3% for FY-2025, which is in line with its 3-year historical median of 43.3%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Pace Digitek Ltd?

Pace Digitek Ltd Return on Asset is 11.17%, which is in line with its 3-year historical median of 11.17%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Pace Digitek Ltd?

Pace Digitek Ltd Return on equity is 34.04% for FY-2025, which is in line with its 3-year historical median of 34.04%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Pace Digitek Ltd?

Pace Digitek Ltd Cash conversion cycle is 38 days, in line with its 3-year historical median of 38 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	1.09	1.09
ROE	34.04	34.04
ROCE	43.3	43.3
Cash Conversion Cycle	38 days	38 days

Q.6 Gross Profit margin of Pace Digitek Ltd?

Pace Digitek Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.2% for FY-2025, which is above its 3-year median of 9.9%, indicating increasing margins.

Q.7 Operating Profit Margin of Pace Digitek Ltd?

Pace Digitek Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.42% for FY-2025, which is above its 3-year median of 14.04% indicating increasing margins.

Q.8 Net Profit Margin of Pace Digitek Ltd?

Pace Digitek Ltd Net Profit Margin is 10.27% for FY-2025, is above with its 3-year median of 7.34%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	14.2	9.9
Operating Profit Margin	17.42	14.04
Net Profit Margin	10.27	7.34

Q.9 Debt to Equity ratio of Pace Digitek Ltd?

Pace Digitek Ltd Debt-to-Equity ratio is 0.14, which is lower with the industry average of 0.45, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Pace Digitek Ltd?

Pace Digitek Ltd Debt to cash flow from operations is -1.19, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Pace Digitek Ltd?

Promoters hold 69.52% of the Pace Digitek Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Pace Digitek Ltd vs industry peers?

Pace Digitek Ltd revenue CAGR is 137.00%, compared to the industry median CAGR of 67.40%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	-2.2	67.4
Gross Profit Growth	40.4	78.3
Operating Profit Growth	21.5	78.3
Net Profit Growth	37.1	71

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	1.09	0.84
ROE	34.04	20.8
ROCE	43.3	16.34
Cash Conversion Cycle (days)	37.67	46

Valuation & price assessment

Q.1 Stock return of Pace Digitek Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 Valuation ratios of Pace Digitek Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	15.81	17.22	35.21
Price to Book	1.84	2.09	1.89
Price to Sales	1.62	1.77	3.07
EV to EBITDA	8.47	9.23	15.73

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