Check Before You Invest : Pokarna Ltd

Q: 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: Is Pokarna Ltd a good quality company?

Pokarna 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 Pokarna Ltd undervalued or overvalued?

Pokarna Ltd appears Somewhat overvalued, as its key valuation ratios are higher than 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: 24.12, Historic Median: 23.50. Price to Book, Current: 3.3, Historic Median: 3.36. Price to Sales, Current: 4, Historic Median: 3.28. EV to EBITDA, Current: 11.99, Historic Median: 10.88

Q: 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

Q: 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: 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: 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: Net Profit Margin of Pokarna Ltd?

Pokarna Ltd Net Profit Margin is 20.15% for FY-2025, is above its 5-year median of 12.04%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 33.3, Historic Median: 22.6. Operating Profit Margin (%), Current: 35.13, Historic Median: 28.16. Net Profit Margin (%), Current: 20.15, Historic Median: 12.04

Q: 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: 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.

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 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 Pokarna Ltd undervalued or overvalued?

Pokarna Ltd appears Somewhat overvalued, as its key valuation ratios are higher than 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	24.12	23.50
Price to Book	3.3	3.36
Price to Sales	4	3.28
EV to EBITDA	11.99	10.88

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

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 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 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.3 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.4 Net Profit Margin of Pokarna Ltd?

Pokarna Ltd Net Profit Margin is 20.15% for FY-2025, is above 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	0.69	0.6
ROE (%)	27.35	16.62
ROCE (%)	29.12	17.77
Cash Conversion Cycle	75 days	103 days

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

Q.9 Debt to Equity ratio of Pokarna Ltd?

Pokarna Ltd Debt-to-Equity ratio is 0.42, which is above the industry average of 0.32, 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

D: Promoter shareholding and pledge status of Pokarna Ltd?

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)

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

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

Pokarna Ltd revenue CAGR is 18.75%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	35.3	0
Gross Profit Growth (%)	70.3	9
Operating Profit Growth (%)	55	1.1
Net Profit Growth (%)	105.5	15.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.69	0.55
ROE (%)	27.35	2.33
ROCE (%)	29.12	5.52
Cash Conversion Cycle (days)	75.13	187

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 16.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	16.3%	28.7%	30.5%	-4.5%

Q.2 Valuation ratios of Pokarna Ltd vs historical?

The current P/E ratio of 24.12 is in line with than its historical median of 23.50, indicating that the stock is trading near 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	24.12	23.50	24.16
Price to Book	3.3	3.36	0.90
Price to Sales	4	3.28	1.28
EV to EBITDA	11.99	10.88	10.79

Check more companies

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10. Exxaro Tiles

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Check Before You Invest : Pokarna 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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