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INVESTMENT INSIGHTS

Check Before You Invest : Pennar Industries Ltd

BSE: 513228 NSE: PENIND ISIN: INE932A01024
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Pennar Industries Ltd belong to?
Pennar Industries Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Pennar Industries Ltd a good quality company?
Pennar Industries Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Pennar Industries Ltd undervalued or overvalued?
Pennar Industries Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Pennar Industries Ltd a good buy now?
Pennar Industries 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

Q.1 Revenue growth of Pennar Industries Ltd?
Pennar Industries Ltd revenue growth is 4.9% for FY-2025 , which is above its 5 year CAGR of 4.2% , indicating faster growth.
Q.2 Gross Profit margin of Pennar Industries Ltd?
Pennar Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.8% for FY-2025 , which is above its 5 year median of 5.1% , indicating increasing margins.
Q.3 Operating Profit Margin of Pennar Industries Ltd?
Pennar Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.29% for FY-2025 , which is above its 5 year median of 7.73% indicating increasing margins.
Q.4 Net Profit Margin of Pennar Industries Ltd?
Pennar Industries Ltd Net Profit Margin is 3.56% for FY-2025 , is above with its 5 year median of 1.93%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 6.8 5.1
Operating Profit Margin 10.29 7.73
Net Profit Margin 3.56 1.93
Q.5 Return on Asset of Pennar Industries Ltd?
Pennar Industries Ltd Return on Asset is 3.55%, which is above its 5 year historical median of 2.1%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Pennar Industries Ltd?
Pennar Industries Ltd Return on equity is 11.02% for FY-2025 , which is above its historical median of 6.08%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Pennar Industries Ltd?
Pennar Industries Ltd Return on capital employed is 15.02% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Pennar Industries Ltd?
Pennar Industries Ltd Cash conversion cycle is 126 days, above its historical median of 124 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.01 1.01
ROE 11.02 6.08
ROCE 15.02 11.2
Cash Conversion Cycle 126 days 124 days
Q.9 Debt to Equity ratio of Pennar Industries Ltd?
Pennar Industries Ltd Debt-to-Equity ratio is 0.88 , which is above with the industry average of 0.32 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Pennar Industries Ltd?
Pennar Industries Ltd Debt to cash flow from operations is 4.57 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Pennar Industries Ltd?
Promoters hold 39.67% of the Pennar Industries Ltd, with 2.80% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Pennar Industries Ltd vs industry peers?
Pennar Industries Ltd revenue CAGR is 4.21% , compared to the industry median CAGR of 7.41% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,578.2 364.5
Gross Profit 175.3 11.6
Operating Profit 265 15
Net Profit 92 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.01 1.27
ROE 11.02 8.12
ROCE 15.02 11.38
Cash Conversion Cycle (days) 126.03 72

Valuation & price assessment

Q.1 Stock return of Pennar Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 13.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 13.2% 59.7% 29.2% -9.8%
Q.3 Valuation ratios of Pennar Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 22.81 0.00 23.93
Price to Book 2.41 0.19 1.46
Price to Sales 0.82 0.08 0.74
EV to EBITDA 9.56 5.31 9.89

Check more companies

1. Welspun Corp
2. Shyam Metalics&Ener
3. Gallantt Ispat
4. Sarda Energy&Min.
5. Godawari Power & Isp
6. Ratnamani Metals
7. Jindal Saw
8. Usha Martin
9. NMDC Steel
10. Jayaswal Neco Inds
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