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Check Before You Invest : Piotex Industries Ltd

BSE: 544178 NSE: ISIN: INE0R4W01015
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Piotex Industries Ltd belong to?
Piotex Industries Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Piotex Industries Ltd a good quality company?
Piotex Industries Ltd is a quality company, based on a 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 Piotex Industries Ltd undervalued or overvalued?
Piotex Industries 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 6.07 9.69
Price to Book 0.81 1.01
Price to Sales 0.15 0.25
EV to EBITDA 4.49 6.79
Q.4 Is Piotex Industries Ltd a good buy now?
Piotex Industries 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.

Q.1 Gross Profit margin of Piotex Industries Ltd?
Piotex Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.4% for FY-2025, which is in line with its 5-year median of 3.4%, indicating stable margins.

Q.2 Operating Profit Margin of Piotex Industries Ltd?
Piotex Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.46% for FY-2025, which is above its 5-year median of 3.22% indicating increasing margins.

Q.3 Net Profit Margin of Piotex Industries Ltd?
Piotex Industries Ltd Net Profit Margin is 2.5% for FY-2025, is in line with its 5-year median of 2.5%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3.4 3.4
Operating Profit Margin (%) 3.46 3.22
Net Profit Margin (%) 2.5 2.5

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Piotex Industries Ltd?
Piotex Industries Ltd Return on Asset is 9.87%, which is below its 5-year historical median of 11.21%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Piotex Industries Ltd?
Piotex Industries Ltd Return on capital employed is 24.35% for FY-2025, which is below its 5-year historical median of 32.82%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Piotex Industries Ltd?
Piotex Industries Ltd Return on equity is 19.68% for FY-2025, which is below its 5-year historical median of 65.07%, indicating the business is making worse use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Piotex Industries Ltd?
Piotex Industries Ltd Debt-to-Equity ratio is 0.09, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Piotex Industries Ltd?
Piotex Industries Ltd Debt to cash flow from operations is -0.28, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Piotex Industries Ltd?

Q.1 Promoter shareholding and pledge status of Piotex Industries Ltd?
Promoters hold 65.95% of the Piotex Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Piotex Industries Ltd vs industry peers?
Piotex Industries Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) 11.6 17.9
Operating Profit Growth (%) 22.1 16.4
Net Profit Growth (%) 11.6 17.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 3.94 0.52
ROE (%) 19.68 2.05
ROCE (%) 24.35 3.6
Cash Conversion Cycle (days) 37.78 46

Valuation & price assessment

Q.1 Stock return of Piotex Industries Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 1.55% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 1.6%
Q.2 Valuation ratios of Piotex Industries Ltd vs historical?
The current P/E ratio of 6.07 is lower than its historical median of 9.69, 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 6.07 9.69 33.62
Price to Book 0.81 1.01 1.57
Price to Sales 0.15 0.25 2.21
EV to EBITDA 4.49 6.79 14.09

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