Check Before You Invest : Pokarna Ltd

Snapshot

Q.1 Which industry/sub-sector does Pokarna Ltd belong to?

Pokarna Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ceramics/Marble/Granite/Sanitaryware segment.

Q.2 Is Pokarna Ltd a good quality company?

Pokarna Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Pokarna Ltd undervalued or overvalued?

Pokarna Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Pokarna Ltd a good buy now?

Pokarna Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Pokarna Ltd?

Pokarna Ltd revenue growth is 35.3% for FY-2025, which is above its 5-year CAGR of 18.75%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Pokarna Ltd?

Pokarna Ltd Return on capital employed is 29.12% for FY-2025, which is above its 5-year historical median of 17.77%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Pokarna Ltd?

Pokarna Ltd Return on Asset is 13.88%, which is above its 5-year historical median of 7.18%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Pokarna Ltd?

Pokarna Ltd Return on equity is 27.35% for FY-2025, which is above its 5-year historical median of 16.62%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Pokarna Ltd?

Pokarna Ltd Cash conversion cycle is 75 days, below its 5-year historical median of 103 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	0.69	0.6
ROE	27.35	16.62
ROCE	29.12	17.77
Cash Conversion Cycle	75 days	103 days

Q.6 Gross Profit margin of Pokarna Ltd?

Pokarna Ltd Gross profit margin which is the profit after deduction of direct costs, is 33.3% for FY-2025, which is above its 5-year median of 22.6%, indicating increasing margins.

Q.7 Operating Profit Margin of Pokarna Ltd?

Pokarna Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 35.13% for FY-2025, which is above its 5-year median of 28.16% indicating increasing margins.

Q.8 Net Profit Margin of Pokarna Ltd?

Pokarna Ltd Net Profit Margin is 20.15% for FY-2025, is above with its 5-year median of 12.04%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	33.3	22.6
Operating Profit Margin	35.13	28.16
Net Profit Margin	20.15	12.04

Q.9 Debt to Equity ratio of Pokarna Ltd?

Pokarna Ltd Debt-to-Equity ratio is 0.42, which is above with the industry average of 0.34, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Pokarna Ltd?

Pokarna Ltd Debt to cash flow from operations is 1.71, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Pokarna Ltd?

Promoters hold 56.66% of the Pokarna Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Pokarna Ltd vs industry peers?

Pokarna Ltd revenue CAGR is 18.75%, compared to the industry median CAGR of 2.84%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	35.3	2.8
Gross Profit Growth	70.3	9
Operating Profit Growth	55	1.1
Net Profit Growth	105.5	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.69	0.57
ROE	27.35	2.84
ROCE	29.12	5.52
Cash Conversion Cycle (days)	75.13	193

Valuation & price assessment

Q.1 Stock return of Pokarna Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 16.5% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	16.5%	29.2%	34.3%	-0.9%

Q.3 Valuation ratios of Pokarna Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 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	24.19	23.49	24.02
Price to Book	3.31	3.36	0.90
Price to Sales	4.01	3.28	1.29
EV to EBITDA	12.03	10.87	10.79

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