Check Before You Invest : Panchsheel Organics Ltd

Q: Which industry/sub-sector does Panchsheel Organics Ltd belong to?

Panchsheel Organics Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q: Is Panchsheel Organics Ltd a good quality company?

Panchsheel Organics 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: Is Panchsheel Organics Ltd undervalued or overvalued?

Panchsheel Organics 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: 15.66, Historic Median: 17.04. Price to Book, Current: 1.36, Historic Median: 2.18. Price to Sales, Current: 1.85, Historic Median: 2.26. EV to EBITDA, Current: 10.61, Historic Median: 11.03

Q: Is Panchsheel Organics Ltd a good buy now?

Panchsheel Organics 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: Revenue growth of Panchsheel Organics Ltd?

Panchsheel Organics Ltd revenue growth is 1.9% for FY-2025, which is below its 5-year CAGR of 16.24%, indicating slower growth.

Q: Gross Profit margin of Panchsheel Organics Ltd?

Panchsheel Organics Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.9% for FY-2025, which is in line with its 5-year median of 18.9%, indicating stable margins.

Q: Operating Profit Margin of Panchsheel Organics Ltd?

Panchsheel Organics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.42% for FY-2025, which is below its 5-year median of 17.92% indicating decreasing margins.

Q: Net Profit Margin of Panchsheel Organics Ltd?

Panchsheel Organics Ltd Net Profit Margin is 12.87% for FY-2025, is in line with its 5-year median of 12.87%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 18.9, Historic Median: 18.9. Operating Profit Margin (%), Current: 16.42, Historic Median: 17.92. Net Profit Margin (%), Current: 12.87, Historic Median: 12.87

Q: Return on Asset of Panchsheel Organics Ltd?

Panchsheel Organics Ltd Return on Asset is 8.49%, which is below its 5-year historical median of 9.82%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Panchsheel Organics Ltd?

Panchsheel Organics Ltd Return on capital employed is 13.65% for FY-2025, which is below its 5-year historical median of 18.6%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Panchsheel Organics Ltd

Snapshot

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

Panchsheel Organics Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Panchsheel Organics Ltd a good quality company?

Panchsheel Organics 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 Panchsheel Organics Ltd undervalued or overvalued?

Panchsheel Organics 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	15.66	17.04
Price to Book	1.36	2.18
Price to Sales	1.85	2.26
EV to EBITDA	10.61	11.03

Q.4 Is Panchsheel Organics Ltd a good buy now?

Panchsheel Organics 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Panchsheel Organics Ltd?

Panchsheel Organics Ltd revenue growth is 1.9% for FY-2025, which is below its 5-year CAGR of 16.24%, indicating slower growth.

Q.2 Gross Profit margin of Panchsheel Organics Ltd?

Panchsheel Organics Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.9% for FY-2025, which is in line with its 5-year median of 18.9%, indicating stable margins.

Q.3 Operating Profit Margin of Panchsheel Organics Ltd?

Panchsheel Organics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.42% for FY-2025, which is below its 5-year median of 17.92% indicating decreasing margins.

Q.4 Net Profit Margin of Panchsheel Organics Ltd?

Panchsheel Organics Ltd Net Profit Margin is 12.87% for FY-2025, is in line with its 5-year median of 12.87%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	18.9	18.9
Operating Profit Margin (%)	16.42	17.92
Net Profit Margin (%)	12.87	12.87

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Panchsheel Organics Ltd?

Panchsheel Organics Ltd Return on Asset is 8.49%, which is below its 5-year historical median of 9.82%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Panchsheel Organics Ltd?

Panchsheel Organics Ltd Return on capital employed is 13.65% for FY-2025, which is below its 5-year historical median of 18.6%. 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 Panchsheel Organics Ltd?

Panchsheel Organics Ltd Return on equity is 10.66% for FY-2025, which is below its 5-year historical median of 13.35%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Panchsheel Organics Ltd?

Panchsheel Organics Ltd Cash conversion cycle is 196 days, in line with its 5-year historical median of 188 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)	0.66	0.88
ROE (%)	10.66	13.35
ROCE (%)	13.65	18.6
Cash Conversion Cycle	196 days	188 days

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

Q.9 Debt to Equity ratio of Panchsheel Organics Ltd?

Panchsheel Organics Ltd Debt-to-Equity ratio is 0.04, which is lower the industry average of 0.14, indicating lower debt levels in the industry.

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

Panchsheel Organics Ltd Debt to cash flow from operations is 1.42, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Panchsheel Organics Ltd?

Q.1 Promoter shareholding and pledge status of Panchsheel Organics Ltd?

Promoters hold 56.12% of the Panchsheel Organics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Panchsheel Organics Ltd vs industry peers?

Panchsheel Organics Ltd revenue CAGR is 16.24%, compared to the industry median CAGR of 5.35%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	1.9	5.4
Gross Profit Growth (%)	-4.8	14
Operating Profit Growth (%)	-5.3	11.5
Net Profit Growth (%)	-	12

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.66	0.79
ROE (%)	10.66	9.17
ROCE (%)	13.65	11.52
Cash Conversion Cycle (days)	196.49	76

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 14.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	14.8%	25.3%	-7.3%	2.2%

Q.2 Valuation ratios of Panchsheel Organics Ltd vs historical?

The current P/E ratio of 15.66 is lower than its historical median of 17.04, 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	15.66	17.04	31.09
Price to Book	1.36	2.18	2.85
Price to Sales	1.85	2.26	2.82
EV to EBITDA	10.61	11.03	15.99

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Check Before You Invest : Panchsheel Organics Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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