SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Pashupati Cotspin Ltd

BSE: 544448 NSE: PASHUPATI ISIN: INE124Y01028
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Spinning

Snapshot

Q.1 Which industry/sub-sector does Pashupati Cotspin Ltd belong to?
Pashupati Cotspin Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.
Q.2 Is Pashupati Cotspin Ltd a good quality company?
Pashupati Cotspin Ltd is a weak quality company, based on a inconsistent 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 Pashupati Cotspin Ltd undervalued or overvalued?
Pashupati Cotspin Ltd appears Overvalued, as its key valuation ratios are higher 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 111.91 47.53
Price to Book 8.85 1.86
Price to Sales 2.26 0.44
EV to EBITDA 39.04 14.86
Q.4 Is Pashupati Cotspin Ltd a good buy now?
Pashupati Cotspin 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 Pashupati Cotspin Ltd?
Pashupati Cotspin Ltd revenue growth is -3.3% for FY-2025, which is below its 5-year CAGR of 9.91%, indicating slower growth.

Q.2 Gross Profit margin of Pashupati Cotspin Ltd?
Pashupati Cotspin Ltd Gross profit margin which is the profit after deduction of direct costs, is 4% for FY-2025, which is in line with its 5-year median of 4%, indicating stable margins.

Q.3 Operating Profit Margin of Pashupati Cotspin Ltd?
Pashupati Cotspin Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.92% for FY-2025, which is below its 5-year median of 4.6% indicating decreasing margins.

Q.4 Net Profit Margin of Pashupati Cotspin Ltd?
Pashupati Cotspin Ltd Net Profit Margin is 2.02% for FY-2025, is above its 5-year median of 1.26%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4 4
Operating Profit Margin (%) 3.92 4.6
Net Profit Margin (%) 2.02 1.26

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Pashupati Cotspin Ltd?
Pashupati Cotspin Ltd Return on Asset is 4.34%, which is above its 5-year historical median of 2.69%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Pashupati Cotspin Ltd?
Pashupati Cotspin Ltd Return on capital employed is 11.51% for FY-2025, which is above its 5-year historical median of 10.18%. 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 Pashupati Cotspin Ltd?
Pashupati Cotspin Ltd Return on equity is 9.44% for FY-2025, which is above its 5-year historical median of 7.22%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Pashupati Cotspin Ltd?
Pashupati Cotspin Ltd Cash conversion cycle is 43 days, below its 5-year historical median of 58 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) 2.15 2.14
ROE (%) 9.44 7.22
ROCE (%) 11.51 10.18
Cash Conversion Cycle 43 days 58 days

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

Q.9 Debt to Equity ratio of Pashupati Cotspin Ltd?
Pashupati Cotspin Ltd Debt-to-Equity ratio is 0.64, which is above the industry average of 0.36, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Pashupati Cotspin Ltd?
Pashupati Cotspin Ltd Debt to cash flow from operations is 3.37, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Pashupati Cotspin Ltd?

Q.1 Promoter shareholding and pledge status of Pashupati Cotspin Ltd?
Promoters hold 65.99% of the Pashupati Cotspin Ltd, with 1.92% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Pashupati Cotspin Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Pashupati Cotspin Ltd vs industry peers?
Pashupati Cotspin Ltd revenue CAGR is 9.91%, compared to the industry median CAGR of 1.47%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -3.3 1.5
Gross Profit Growth (%) 13 1.8
Operating Profit Growth (%) -16.7 -1.5
Net Profit Growth (%) 62.5 2.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.15 0.94
ROE (%) 9.44 -
ROCE (%) 11.51 6.13
Cash Conversion Cycle (days) 42.69 61

Valuation & price assessment

Q.1 Stock return of Pashupati Cotspin Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 3.72% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 3.7% -2.8% -86.1%
Q.2 Valuation ratios of Pashupati Cotspin Ltd vs historical?
The current P/E ratio of 111.91 is higher than its historical median of 47.53, indicating that the stock is trading above 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 111.91 47.53 9.43
Price to Book 8.85 1.86 0.72
Price to Sales 2.26 0.44 0.40
EV to EBITDA 39.04 14.86 7.20

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:

×