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Check Before You Invest : Panasonic Carbon India Company Ltd

BSE: 508941 NSE: PANCARBON ISIN: INE013E01017
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electrodes & Welding Equipment

Snapshot

Q.1 Which industry/sub-sector does Panasonic Carbon India Company Ltd belong to?
Panasonic Carbon India Company Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electrodes & Welding Equipment segment.
Q.2 Is Panasonic Carbon India Company Ltd a good quality company?
Panasonic Carbon India Company Ltd is a good quality company, based on a consistently good 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 Panasonic Carbon India Company Ltd undervalued or overvalued?
Panasonic Carbon India Company Ltd appears Fair, as its key valuation ratios are in line with 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 10.75 12.84
Price to Book 1.22 1.45
Price to Sales 4.17 4.28
EV to EBITDA 7.35 8.69
Q.4 Is Panasonic Carbon India Company Ltd a good buy now?
Panasonic Carbon India Company 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 Panasonic Carbon India Company Ltd?
Panasonic Carbon India Company Ltd revenue growth is 5.2% for FY-2025, which is above its 5-year CAGR of 3.71%, indicating faster growth.

Q.2 Gross Profit margin of Panasonic Carbon India Company Ltd?
Panasonic Carbon India Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 53% for FY-2025, which is above its 5-year median of 50.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Panasonic Carbon India Company Ltd?
Panasonic Carbon India Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 31.21% for FY-2025, which is in line with its 5-year median of 29.9% indicating stable margins.

Q.4 Net Profit Margin of Panasonic Carbon India Company Ltd?
Panasonic Carbon India Company Ltd Net Profit Margin is 38.57% for FY-2025, is above its 5-year median of 36.23%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 53 50.2
Operating Profit Margin (%) 31.21 29.9
Net Profit Margin (%) 38.57 36.23

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Panasonic Carbon India Company Ltd?
Panasonic Carbon India Company Ltd Return on Asset is 12.25%, which is in line with its 5-year historical median of 11.94%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Panasonic Carbon India Company Ltd?
Panasonic Carbon India Company Ltd Return on capital employed is 17.02% for FY-2025, which is in line with its 5-year historical median of 16.65%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Panasonic Carbon India Company Ltd?
Panasonic Carbon India Company Ltd Return on equity is 12.67% for FY-2025, which is in line with its 5-year historical median of 12.36%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Panasonic Carbon India Company Ltd?
Panasonic Carbon India Company Ltd Cash conversion cycle is 20 days, in line with its 5-year historical median of 20 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.32 0.34
ROE (%) 12.67 12.36
ROCE (%) 17.02 16.65
Cash Conversion Cycle 20 days 20 days

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

Q.9 Debt to Equity ratio of Panasonic Carbon India Company Ltd?
Panasonic Carbon India Company Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.09, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Panasonic Carbon India Company Ltd?
Panasonic Carbon India Company Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Panasonic Carbon India Company Ltd?

Q.1 Promoter shareholding and pledge status of Panasonic Carbon India Company Ltd?
Promoters hold 63.27% of the Panasonic Carbon India Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Panasonic Carbon India Company Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Panasonic Carbon India Company Ltd vs industry peers?
Panasonic Carbon India Company Ltd revenue CAGR is 3.71%, compared to the industry median CAGR of 7.29%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 5.2 7.3
Gross Profit Growth (%) 11.5 24
Operating Profit Growth (%) 13.3 21
Net Profit Growth (%) 10.5 19.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.32 1.1
ROE (%) 12.67 11.33
ROCE (%) 17.02 14.01
Cash Conversion Cycle (days) 19.6 90

Valuation & price assessment

Q.1 Stock return of Panasonic Carbon India Company Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -0.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-0.6% 0.5% 10.1% -6.3%
Q.2 Valuation ratios of Panasonic Carbon India Company Ltd vs historical?
The current P/E ratio of 10.75 is lower than its historical median of 12.84, 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 10.75 12.84 19.09
Price to Book 1.22 1.45 1.95
Price to Sales 4.17 4.28 1.73
EV to EBITDA 7.35 8.69 10.27

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