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Check Before You Invest : Perfectpac Ltd

BSE: 526435 NSE: ISIN: INE759I01024
  |   Sector:  Paper & Stationary   |   Industry:  Paper & Paper Products

Snapshot

Q.1 Which industry/sub-sector does Perfectpac Ltd belong to?
Perfectpac Ltd belongs to the Paper & Stationary sector, operating specifically within the Paper & Paper Products segment.
Q.2 Is Perfectpac Ltd a good quality company?
Perfectpac 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 Perfectpac Ltd undervalued or overvalued?
Perfectpac 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 17.97 19.91
Price to Book 1.4 1.68
Price to Sales 0.47 0.55
EV to EBITDA 7.88 8.92
Q.4 Is Perfectpac Ltd a good buy now?
Perfectpac 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 Perfectpac Ltd?
Perfectpac Ltd revenue growth is 12.2% for FY-2025, which is above its 5-year CAGR of 9.14%, indicating faster growth.

Q.2 Gross Profit margin of Perfectpac Ltd?
Perfectpac Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.7% for FY-2025, which is in line with its 5-year median of 5.7%, indicating stable margins.

Q.3 Operating Profit Margin of Perfectpac Ltd?
Perfectpac Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.67% for FY-2025, which is in line with its 5-year median of 5.67% indicating stable margins.

Q.4 Net Profit Margin of Perfectpac Ltd?
Perfectpac Ltd Net Profit Margin is 2.78% for FY-2025, is in line with its 5-year median of 2.78%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 5.7 5.7
Operating Profit Margin (%) 5.67 5.67
Net Profit Margin (%) 2.78 2.78

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Perfectpac Ltd?
Perfectpac Ltd Return on Asset is 6.53%, which is in line with its 5-year historical median of 6.24%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Perfectpac Ltd?
Perfectpac Ltd Return on capital employed is 11.93% for FY-2025, which is above its 5-year historical median of 11.36%. 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 Perfectpac Ltd?
Perfectpac Ltd Return on equity is 8.69% for FY-2025, which is in line with its 5-year historical median of 8.69%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Perfectpac Ltd?
Perfectpac Ltd Cash conversion cycle is 54 days, below its 5-year historical median of 74 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 (x) 2.35 2.2
ROE (%) 8.69 8.69
ROCE (%) 11.93 11.36
Cash Conversion Cycle 54 days 74 days

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

Q.9 Debt to Equity ratio of Perfectpac Ltd?
Perfectpac Ltd Debt-to-Equity ratio is 0.02, which is lower the industry average of 0.48, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Perfectpac Ltd?
Perfectpac Ltd Debt to cash flow from operations is 0.16, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Perfectpac Ltd?

Q.1 Promoter shareholding and pledge status of Perfectpac Ltd?
Promoters hold 74.83% of the Perfectpac Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Perfectpac Ltd vs industry peers?
Perfectpac Ltd revenue CAGR is 9.14%, compared to the industry median CAGR of 5.29%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 12.2 5.3
Gross Profit Growth (%) -11.3 3.9
Operating Profit Growth (%) -9.9 0.8
Net Profit Growth (%) -20.9 1.4
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.35 0.91
ROE (%) 8.69 4.81
ROCE (%) 11.93 7.06
Cash Conversion Cycle (days) 54.33 47

Valuation & price assessment

Q.1 Stock return of Perfectpac Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 24.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
24.4% 28.9% 9.2% -16.1%
Q.2 Valuation ratios of Perfectpac Ltd vs historical?
The current P/E ratio of 17.97 is lower than its historical median of 19.91, 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 17.97 19.91 11.02
Price to Book 1.4 1.68 0.91
Price to Sales 0.47 0.55 0.72
EV to EBITDA 7.88 8.92 6.12

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