Check Before You Invest : Panafic Industrials Ltd

Q: Which industry/sub-sector does Panafic Industrials Ltd belong to?

Panafic Industrials Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q: Is Panafic Industrials Ltd a good quality company?

Panafic Industrials Ltd is a quality company, based on a multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Panafic Industrials Ltd undervalued or overvalued?

Panafic Industrials 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. Price to Earnings, Current: 197.86, Historic Median: 28.81. Price to Book, Current: 1.01, Historic Median: 0.95. Price to Sales, Current: 53.49, Historic Median: 12.21. EV to EBITDA, Current: 210.65, Historic Median: 52.11

Q: Is Panafic Industrials Ltd a good buy now?

Panafic Industrials 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

Q: Total Income growth of Panafic Industrials Ltd?

Panafic Industrials Ltd Operating Income growth is -2.95% for FY-2025, which is below its 5-year CAGR of 0.87%, indicating slower growth.

Q: Return on Assets of Panafic Industrials Ltd?

Panafic Industrials Ltd Return on Asset is 0.2%, which is below its 5-year historical median of 1.1%, indicating deteriorated earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 4.31, Historic Median: 15.38. PPOP (%), Current: -, Historic Median: -84.36. RoA (%), Current: 0.2, Historic Median: 1.1

Q: Return on Equity (ROE) of Panafic Industrials Ltd?

Panafic Industrials Ltd Return on Equity is 0.3% for FY-2025, which is below its 5-year historical median of 1.1%, indicating the business is making worse use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Panafic Industrials Ltd?

Panafic Industrials Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 0% for FY-2025, which is above its 5-year median(-84.36%), indicating increasing margins.

Q: Net Profit Margin of Panafic Industrials Ltd?

Panafic Industrials Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 4.31% for FY-2025, which is below its 5-year median( 15.38%), indicating decreasing margins.

Q: Does its ROIC exceed its WACC?

Panafic Industrials Ltd return on invested capital (ROIC) is 0.24% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Snapshot

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

Panafic Industrials Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Panafic Industrials Ltd a good quality company?

Panafic Industrials Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Panafic Industrials Ltd undervalued or overvalued?

Panafic Industrials 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	197.86	28.81
Price to Book	1.01	0.95
Price to Sales	53.49	12.21
EV to EBITDA	210.65	52.11

Q.4 Is Panafic Industrials Ltd a good buy now?

Panafic Industrials 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 Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Panafic Industrials Ltd?

Panafic Industrials Ltd Operating Income growth is -2.95% for FY-2025, which is below its 5-year CAGR of 0.87%, indicating slower growth.

Q.2 Return on Assets of Panafic Industrials Ltd?

Panafic Industrials Ltd Return on Asset is 0.2%, which is below its 5-year historical median of 1.1%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	4.31	15.38
PPOP (%)	-	-84.36
RoA (%)	0.2	1.1

Q.3 Return on Equity (ROE) of Panafic Industrials Ltd?

Panafic Industrials Ltd Return on Equity is 0.3% for FY-2025, which is below its 5-year historical median of 1.1%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Panafic Industrials Ltd?

Panafic Industrials Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 0% for FY-2025, which is above its 5-year median(-84.36%), indicating increasing margins.

Q.5 Net Profit Margin of Panafic Industrials Ltd?

Panafic Industrials Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 4.31% for FY-2025, which is below its 5-year median( 15.38%), indicating decreasing margins.

Q.6 Does its ROIC exceed its WACC?

Panafic Industrials Ltd return on invested capital (ROIC) is 0.24% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Panafic Industrials Ltd?

Panafic Industrials Ltd Total Asset growth is 43.05% for FY-2025, which is above its 5-year CAGR of -3.83%, indicating faster growth.

Ownership & governance

D: Promoter shareholding and pledge status of Panafic Industrials Ltd?

Q.1 Promoter shareholding and pledge status of Panafic Industrials Ltd?

Promoters hold 2.21% of the Panafic Industrials Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 AUM Growth of Panafic Industrials Ltd vs Industry Peers?

Panafic Industrials Ltd AUM CAGR is -3.83%, compared to the 5-year industry median CAGR of 9.71%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Panafic Industrials Ltd vs industry peers

Panafic Industrials Ltd profit metrics are in line with the industry median level of 4.76%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	4.31	12.87
PPOP (%)	-	-
RoA (%)	0.2	1.4

Q.3 Operating efficiency of Panafic Industrials Ltd vs industry peers?

Panafic Industrials Ltd ROCE (1) is below the industry median of (4.15); while the current ROE (1.1) are below than the 5-year average Industry ROE (2.3). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	4.31	12.87
PPOP (%)	-	-
RoA (%)	0.2	1.4
ROCE (%)	0.4	4.15
ROE (%)	0.3	2.3

Valuation & price assessment

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

Over the last 9 years, the stock has delivered a CAGR of -26.1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-26.1%	42%	2.7%	31.7%

Q.2 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	197.86	28.81	29.12
Price to Book	1.01	0.95	1.11
Price to Sales	53.49	12.21	9.10
EV to EBITDA	210.65	52.11	11.77

Q.3 Valuation ratios of Panafic Industrials Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1.01 is higher than its historical median of 0.95, indicating that the stock is trading above its historical average valuation.

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