Recent Price Movement and Market Context
On 31 Dec 2025, Pacific Industries Ltd recorded an intraday low of Rs.145, down 2.23% from its previous close. The stock also experienced an intraday high of Rs.152.9, representing a 3.1% rise during the session, but ultimately closed near its low point. This marks a continuation of a seven-day losing streak, during which the stock has declined by 15.65%. The day’s performance saw the stock underperform its sector by 2.39%, reflecting broader challenges faced by the company.
Pacific Industries is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. This contrasts with the broader market, where the Sensex rose sharply by 635.93 points (0.89%) to close at 85,429.51, just 0.85% shy of its 52-week high of 86,159.02. The Sensex’s bullish momentum is further supported by its 50-day moving average trading above the 200-day moving average, while small caps led gains with the BSE Small Cap index advancing 1.16%.
Long-Term Performance and Valuation Metrics
Over the past year, Pacific Industries Ltd has delivered a negative return of 51.77%, starkly underperforming the Sensex’s positive 9.30% gain. The stock’s 52-week high was Rs.320.5, highlighting the extent of the decline. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the last three years, one year, and three months.
From a valuation standpoint, the company’s price-to-book value stands at a modest 0.2, indicating a fair valuation relative to its book value. However, this is coupled with a low return on equity (ROE) of 1.1%, reflecting limited profitability relative to shareholder equity. Despite this, the stock trades at a premium compared to its peers’ average historical valuations, suggesting market expectations may not have fully adjusted to the company’s recent performance.
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Fundamental Weaknesses and Financial Performance
Pacific Industries Ltd’s fundamental profile remains subdued, as reflected in its MarketsMOJO Mojo Score of 12.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 11 Feb 2025. The company’s market capitalisation grade is rated 4, indicating a relatively small market cap within its sector.
The company’s long-term financial metrics reveal several areas of concern. Its average return on equity (ROE) over recent years is a low 2.34%, signalling limited efficiency in generating profits from shareholders’ funds. Net sales have grown at an annual rate of 14.59% over the past five years, which, while positive, has not translated into robust profitability.
Debt servicing capacity is weak, with an average EBIT to interest ratio of just 1.06, suggesting limited cushion to cover interest expenses. This financial strain is further evidenced by the company’s recent quarterly and half-yearly results. For the nine months ended September 2025, profit after tax (PAT) stood at Rs.3.57 crore, a decline of 59.15% compared to the previous period. Cash and cash equivalents at half-year stood at Rs.35.22 crore, the lowest level recorded, while quarterly net sales dropped to Rs.39.59 crore, also a low point.
Sector and Shareholding Overview
Operating within the diversified consumer products sector, Pacific Industries Ltd faces competitive pressures and market dynamics that have contributed to its subdued performance. The company’s majority shareholding rests with promoters, indicating concentrated ownership.
Despite the challenging environment, the stock’s valuation metrics suggest a degree of market caution, with the price-to-book ratio remaining low. However, the premium relative to peer valuations indicates that investors may still be pricing in some residual value or potential recovery factors.
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Summary of Key Metrics and Market Position
To summarise, Pacific Industries Ltd’s stock has reached a new 52-week low of Rs.145 after a sustained period of decline, reflecting a combination of weak financial performance and valuation pressures. The stock’s seven-day losing streak and underperformance relative to sector and market benchmarks underscore the challenges faced by the company.
While the broader market and small-cap segments have shown strength, Pacific Industries Ltd’s fundamentals, including low ROE, declining profits, and limited debt servicing capacity, have weighed on investor sentiment. The stock’s valuation remains modest, with a price-to-book ratio of 0.2, but it trades at a premium to peer averages, indicating some residual market expectations.
Overall, the stock’s recent price action and financial metrics highlight the difficulties encountered by Pacific Industries Ltd in maintaining growth and profitability within the diversified consumer products sector.
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