Stock Performance and Market Context
The stock has been on a consistent slide, registering losses for six consecutive trading sessions and delivering a cumulative return of -11.58% during this period. Today's decline of -1.57% further extended the stock's underperformance relative to its sector, lagging by 0.35%. Pacific Industries is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.
In contrast, the broader market index, Sensex, opened lower by 94.55 points and is trading at 84,528.24, down 0.2%. Despite this minor setback, Sensex remains close to its 52-week high of 86,159.02, just 1.93% away, and maintains a technical structure where the 50-day moving average is above the 200-day moving average, indicating a generally positive market trend.
Over the last year, Pacific Industries Ltd has delivered a return of -51.87%, significantly underperforming the Sensex, which posted an 8.05% gain over the same period. The stock's 52-week high was Rs.320.5, highlighting the extent of the recent decline.
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Financial Metrics and Fundamental Assessment
Pacific Industries Ltd's financial profile reflects several areas of concern. The company’s long-term fundamental strength is weak, as evidenced by an average Return on Equity (ROE) of just 2.34%. This figure is notably low for a diversified consumer products company and suggests limited efficiency in generating shareholder returns.
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. The company’s ability to service its debt is also under pressure, with an average EBIT to interest ratio of 1.06, indicating a narrow margin to cover interest expenses.
Recent quarterly results further underline the challenges faced. The Profit After Tax (PAT) for the nine months ended September 2025 stood at Rs.3.57 crore, reflecting a decline of 59.15% compared to the previous period. Cash and cash equivalents at the half-year mark were at a low of Rs.35.22 crore, while net sales for the quarter dropped to Rs.39.59 crore, the lowest in recent periods.
Long-Term and Near-Term Performance Trends
The stock’s underperformance is not limited to the recent year. Over the last three years, Pacific Industries Ltd has consistently lagged behind the BSE500 index, as well as its sector peers. This trend is mirrored in the stock’s Mojo Score of 12.0 and a Mojo Grade of Strong Sell, which was downgraded from Sell on 11 February 2025. The market capitalisation grade stands at 4, reflecting the company’s relatively modest size and market presence.
Despite the weak returns, the stock trades at a Price to Book Value of 0.2, which is considered fair but still at a premium compared to the average historical valuations of its peers. The company’s ROE of 1.1 further supports this valuation as fair rather than undervalued.
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Shareholding and Sectoral Positioning
Pacific Industries Ltd operates within the diversified consumer products sector, a space characterised by varied consumer demand and competitive pressures. The majority shareholding is held by promoters, which typically provides stability in ownership but also concentrates control.
The stock’s recent performance and fundamental metrics suggest that it has faced considerable headwinds both in the broader market context and within its sector. The combination of declining profitability, subdued sales growth, and constrained debt servicing capacity has contributed to the stock’s slide to its current 52-week low.
Summary of Key Data Points
To summarise, Pacific Industries Ltd’s stock has declined to Rs.150, its lowest level in the past year, after a sustained six-day losing streak. The stock’s one-year return of -51.87% contrasts sharply with the Sensex’s positive 8.05% gain. Financially, the company exhibits a low ROE of 2.34%, weak EBIT to interest coverage of 1.06, and a significant drop in PAT and sales in recent quarters. The Mojo Grade of Strong Sell reflects these challenges, underscoring the stock’s current standing in the market.
Technical and Valuation Overview
Technically, the stock’s position below all major moving averages indicates a bearish trend with limited immediate support. The fair valuation at a Price to Book Value of 0.2, while modest, does not offset the fundamental concerns. The stock’s premium relative to peer valuations suggests that market participants may be pricing in risks associated with the company’s financial health and growth prospects.
Market Environment
While Pacific Industries Ltd struggles, the broader market environment remains mixed. The Sensex’s proximity to its 52-week high and its technical positioning above the 200-day moving average indicate resilience in the wider market. This divergence highlights the stock-specific factors influencing Pacific Industries Ltd’s performance rather than a general market downturn.
Conclusion
Pacific Industries Ltd’s fall to a 52-week low of Rs.150 reflects a combination of subdued financial results, valuation considerations, and technical weakness. The stock’s underperformance relative to the broader market and its sector peers is underpinned by declining profitability and constrained operational metrics. These factors collectively explain the current market valuation and the stock’s position within the diversified consumer products sector.
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