MoneyWorks4Me

Check Before You Invest : Poojaa Precision Engg Ltd

BSE: 544844 NSE: ISIN: INE288301026
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Poojaa Precision Engg Ltd belong to?
Poojaa Precision Engg Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Poojaa Precision Engg Ltd a good quality company?
Poojaa Precision Engg Ltd is a average quality company, based on a somewhat consistent 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 Poojaa Precision Engg Ltd undervalued or overvalued?
Poojaa Precision Engg Ltd appears 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 3-year
Historic Median
Price to Earnings 30.36 31.85
Price to Book 3.2 3.37
Price to Sales 3.19 3.35
EV to EBITDA 18.27 19.13
Q.4 Is Poojaa Precision Engg Ltd a good buy now?
Poojaa Precision Engg 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 Poojaa Precision Engg Ltd?
Poojaa Precision Engg Ltd revenue growth is 32.4% for FY-2026, which is above its 3-year CAGR of 21.61%, indicating faster growth.

Q.2 Gross Profit margin of Poojaa Precision Engg Ltd?
Poojaa Precision Engg Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.7% for FY-2026, which is in line with its 3-year median of 16.7%, indicating stable margins.

Q.3 Operating Profit Margin of Poojaa Precision Engg Ltd?
Poojaa Precision Engg Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.69% for FY-2026, which is in line with its 3-year median of 17.69% indicating stable margins.

Q.4 Net Profit Margin of Poojaa Precision Engg Ltd?
Poojaa Precision Engg Ltd Net Profit Margin is 10.52% for FY-2026, is in line with its 3-year median of 10.52%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 16.7 16.7
Operating Profit Margin (%) 17.69 17.69
Net Profit Margin (%) 10.52 10.52

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Poojaa Precision Engg Ltd?
Poojaa Precision Engg Ltd Return on Asset is 16.83%, which is in line with its 3-year historical median of 17.15%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Poojaa Precision Engg Ltd?
Poojaa Precision Engg Ltd Return on capital employed is 33.43% for FY-2026, which is in line with its 3-year historical median of 33.43%. 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 Poojaa Precision Engg Ltd?
Poojaa Precision Engg Ltd Return on equity is 28.18% for FY-2026, which is in line with its 3-year historical median of 28.18%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Poojaa Precision Engg Ltd?
Poojaa Precision Engg Ltd Cash conversion cycle is 70 days, above its 3-year historical median of 56 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.6 1.85
ROE (%) 28.18 28.18
ROCE (%) 33.43 33.43
Cash Conversion Cycle 70 days 56 days

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

Q.9 Debt to Equity ratio of Poojaa Precision Engg Ltd?
Poojaa Precision Engg Ltd Debt-to-Equity ratio is 0.31, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Poojaa Precision Engg Ltd?
Poojaa Precision Engg Ltd Debt to cash flow from operations is 1.73, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Poojaa Precision Engg Ltd?

Q.1 Promoter shareholding and pledge status of Poojaa Precision Engg Ltd?
Promoters hold % of the Poojaa Precision Engg Ltd, with % of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Poojaa Precision Engg Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Poojaa Precision Engg Ltd vs industry peers?
Poojaa Precision Engg Ltd revenue CAGR is 21.61%, compared to the industry median CAGR of 12.02%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 32.4 12
Gross Profit Growth (%) 29 22.6
Operating Profit Growth (%) 30 22.4
Net Profit Growth (%) 29.2 24.4
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.6 0.92
ROE (%) 28.18 15.3
ROCE (%) 33.43 18.74
Cash Conversion Cycle (days) 70.34 92

Valuation & price assessment

Q.1 Stock return of Poojaa Precision Engg Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Poojaa Precision Engg Ltd vs historical?
The current P/E ratio of 30.36 is in line with than its historical median of 31.85, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 30.36 31.85 32.30
Price to Book 3.2 3.37 3.57
Price to Sales 3.19 3.35 3.21
EV to EBITDA 18.27 19.13 16.34

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