Current Rating and Its Significance
MarketsMOJO’s Strong Sell rating for Pacific Industries Ltd indicates a cautious stance for investors, suggesting that the stock is expected to underperform relative to the broader market. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment potential as of today.
Quality Assessment
As of 19 January 2026, Pacific Industries Ltd exhibits below-average quality metrics. The company’s long-term fundamental strength remains weak, with an average Return on Equity (ROE) of just 2.34%. This low ROE signals limited efficiency in generating profits from shareholders’ equity, which is a critical measure of management effectiveness and business health. Although the company has achieved a respectable net sales growth rate of 14.59% annually over the past five years, this growth has not translated into robust profitability or returns for investors.
Valuation Perspective
Currently, the valuation grade for Pacific Industries Ltd is considered fair. This suggests that the stock is neither significantly undervalued nor overvalued relative to its peers and historical norms. Investors should note that a fair valuation does not imply a buy signal in isolation, especially when other parameters such as quality and financial trends are weak. The fair valuation indicates that the market price reasonably reflects the company’s current earnings and growth prospects, but it does not compensate adequately for the risks involved.
Financial Trend Analysis
The financial trend for Pacific Industries Ltd is negative as of today. The company reported disappointing results in the nine months ending September 2025, with Profit After Tax (PAT) declining by 59.15% to ₹3.57 crores. Additionally, cash and cash equivalents have dropped to a low ₹35.22 crores, signalling potential liquidity concerns. Quarterly net sales have also fallen to ₹39.59 crores, marking the lowest level in recent periods. The company’s ability to service its debt is weak, with an average EBIT to interest ratio of only 1.06, indicating limited cushion to cover interest expenses. These factors collectively point to deteriorating financial health and heightened risk for investors.
Technical Outlook
From a technical standpoint, the stock is currently graded as bearish. Price performance over various time frames reflects this negative momentum: the stock has declined by 0.25% in the last day, 1.50% over the past week, and a significant 52.25% over the last year as of 19 January 2026. The downward trend is further confirmed by sharp losses over the last six months (-34.24%) and three months (-23.90%). This bearish technical profile suggests that market sentiment remains weak, and the stock may continue to face selling pressure in the near term.
Stock Returns and Market Context
As of 19 January 2026, Pacific Industries Ltd’s stock returns have been notably poor. The one-year return stands at -52.25%, reflecting substantial erosion of shareholder value. Year-to-date, the stock has declined by 4.97%, underscoring ongoing challenges. These returns are considerably below typical benchmarks for diversified consumer products and microcap stocks, highlighting the stock’s underperformance within its sector and market segment.
Investor Implications
For investors, the Strong Sell rating signals caution. The combination of weak quality metrics, negative financial trends, bearish technical signals, and only fair valuation suggests that the stock carries elevated risk with limited upside potential. Investors should carefully consider these factors before initiating or maintaining positions in Pacific Industries Ltd. The current rating advises that the stock may not be suitable for risk-averse portfolios or those seeking stable growth.
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Summary of Key Metrics
To summarise, the latest data as of 19 January 2026 shows:
- Return on Equity (ROE): 2.34% (below average)
- Net Sales growth (5-year CAGR): 14.59%
- Profit After Tax (9M Sep 2025): ₹3.57 crores, down 59.15%
- Cash and Cash Equivalents (HY): ₹35.22 crores (lowest recent level)
- EBIT to Interest coverage ratio (average): 1.06 (weak)
- Stock price returns: -52.25% (1 year), -34.24% (6 months), -23.90% (3 months)
- Mojo Score: 12.0, Mojo Grade: Strong Sell
Conclusion
Pacific Industries Ltd’s current Strong Sell rating by MarketsMOJO reflects a comprehensive assessment of its weak fundamentals, deteriorating financial health, bearish technical outlook, and fair valuation. Investors should approach this stock with caution, recognising the risks highlighted by the latest data. While the company has demonstrated some sales growth, the overall financial and market indicators suggest limited potential for near-term recovery or value appreciation.
Given these factors, the Strong Sell rating serves as a prudent guide for investors to reassess their exposure and consider alternative opportunities with stronger fundamentals and more favourable market dynamics.
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