Pacific Industries Experiences Quality Grade Change Amidst Sales Growth and Financial Challenges

Pacific Industries, a microcap player in the diversified consumer products sector, has recently undergone an evaluation revision. The company has demonstrated notable sales growth over the past five years, achieving a rate of 19.87%. Additionally, its EBIT growth during the same period stands at 19.36%, indicating a solid operational performance.
However, the company's financial metrics reveal some challenges. The average EBIT to interest ratio is recorded at 1.44, while the debt to EBITDA ratio is notably high at 12.36. This suggests a significant leverage position, which may raise concerns regarding financial stability. Furthermore, the net debt to equity ratio is minimal at 0.02, indicating a low reliance on debt financing.

In terms of performance, Pacific Industries has faced difficulties compared to its peers. Over the past year, the company's stock return has declined by 9.86%, contrasting with an 8.17% increase in the Sensex. This trend is further highlighted by a year-to-date return of -30.75%, while the Sensex has gained 4.06% during the same timeframe. Such performance metrics underscore the competitive landscape in which Pacific Industries operates, particularly against its peers, many of which maintain average quality standings.