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Check Before You Invest : Paushak Ltd

BSE: 532742 NSE: PAUSHAKLTD ISIN: INE111F01024
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Paushak Ltd belong to?
Paushak Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Paushak Ltd a good quality company?
Paushak 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 Paushak Ltd undervalued or overvalued?
Paushak Ltd appears Somewhat 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 35.17 35.69
Price to Book 2.82 5.02
Price to Sales 6.33 8.80
EV to EBITDA 20.01 23.20
Q.4 Is Paushak Ltd a good buy now?
Paushak Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Paushak Ltd?
Paushak Ltd revenue growth is 3.6% for FY-2026, which is below its 5-year CAGR of 9.17%, indicating slower growth.

Q.2 Gross Profit margin of Paushak Ltd?
Paushak Ltd Gross profit margin which is the profit after deduction of direct costs, is 32.8% for FY-2026, which is below its 5-year median of 39.5%, indicating decreasing margins.

Q.3 Operating Profit Margin of Paushak Ltd?
Paushak Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.94% for FY-2026, which is below its 5-year median of 31.36% indicating decreasing margins.

Q.4 Net Profit Margin of Paushak Ltd?
Paushak Ltd Net Profit Margin is 17.99% for FY-2026, is below its 5-year median of 25.06%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 32.8 39.5
Operating Profit Margin (%) 27.94 31.36
Net Profit Margin (%) 17.99 25.06

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Paushak Ltd?
Paushak Ltd Return on Asset is 6.38%, which is below its 5-year historical median of 10.82%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Paushak Ltd?
Paushak Ltd Return on capital employed is 9.73% for FY-2026, which is below its 5-year historical median of 17.44%. 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 Paushak Ltd?
Paushak Ltd Return on equity is 8.22% for FY-2026, which is below its 5-year historical median of 13.03%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Paushak Ltd?
Paushak Ltd Cash conversion cycle is 85 days, in line with its 5-year historical median of 85 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) 0.35 0.43
ROE (%) 8.22 13.03
ROCE (%) 9.73 17.44
Cash Conversion Cycle 85 days 85 days

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

Q.9 Debt to Equity ratio of Paushak Ltd?
Paushak Ltd Debt-to-Equity ratio is 0.16, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Paushak Ltd?
Paushak Ltd Debt to cash flow from operations is 1.43, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Paushak Ltd?

Q.1 Promoter shareholding and pledge status of Paushak Ltd?
Promoters hold 67.28% of the Paushak Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Paushak Ltd vs industry peers?
Paushak Ltd revenue CAGR is 9.17%, compared to the industry median CAGR of 7.01%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 3.6 7
Gross Profit Growth (%) -2.7 9.5
Operating Profit Growth (%) 1.7 7
Net Profit Growth (%) -20.4 6.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.35 0.93
ROE (%) 8.22 9.87
ROCE (%) 9.73 12.52
Cash Conversion Cycle (days) 84.77 62

Valuation & price assessment

Q.1 Stock return of Paushak Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 20.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
20.9% -14.3% -12% -13.8%
Q.2 Valuation ratios of Paushak Ltd vs historical?
The current P/E ratio of 35.17 is in line with than its historical median of 35.69, indicating that the stock is trading near 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 35.17 35.69 28.17
Price to Book 2.82 5.02 2.22
Price to Sales 6.33 8.80 1.93
EV to EBITDA 20.01 23.20 14.20

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