Recent Price Movement and Market Context
On 8 December 2025, Pakka opened the trading day with a gap up of 2.39%, reaching an intraday high of Rs.109.4. However, the stock reversed course to hit its intraday low at Rs.104.4, closing near this level and registering a day change of -2.76%. This performance lagged behind its sector peers by approximately 2.7% on the day. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In contrast, the broader market index, Sensex, experienced a modest decline of 0.33%, trading at 85,426.88 points after a flat opening. The Sensex remains close to its 52-week high of 86,159.02, with a gap of just 0.86%. Notably, the Sensex is positioned above its 50-day moving average, which itself is above the 200-day moving average, indicating a generally bullish trend in the wider market.
Long-Term Performance and Valuation Metrics
Over the past year, Pakka’s stock price has declined by 66.88%, a stark contrast to the Sensex’s 4.53% gain during the same period. The stock’s 52-week high was Rs.363, highlighting the extent of the recent price contraction. This underperformance extends beyond the last year, with Pakka also lagging behind the BSE500 index over the last three years, one year, and three months.
From a valuation standpoint, Pakka exhibits a return on capital employed (ROCE) of 1.7%, accompanied by an enterprise value to capital employed ratio of 1. These figures suggest that the stock is trading at a discount relative to its peers’ historical valuations. Despite this, the company’s financial results have shown considerable pressure.
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Financial Results and Profitability Trends
Pakka’s recent quarterly results have reflected a challenging environment. Net sales for the latest quarter stood at Rs.76.32 crores, representing a decline of 22.0% compared to the average of the previous four quarters. Operating cash flow for the year reached a low of Rs.11.16 crores, while the operating profit to interest coverage ratio dropped to 0.65 times, indicating limited buffer to meet interest obligations.
The company’s net profit has shown a steep fall of 130.77% in the most recent quarter, contributing to a series of three consecutive quarters with negative earnings. Over the last five years, operating profits have recorded a compound annual growth rate (CAGR) of -36.78%, underscoring persistent pressure on profitability.
Institutional Holding and Market Participation
Institutional investors currently hold 8.23% of Pakka’s equity, having reduced their stake by 0.53% in the previous quarter. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.
Comparative Sector and Market Performance
Within the Paper, Forest & Jute Products sector, Pakka’s performance has been notably subdued. The stock’s recent returns and valuation metrics contrast with sector averages, where many peers have maintained steadier earnings and price stability. The stock’s discount valuation relative to peers may be influenced by its recent financial results and market sentiment.
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Summary of Key Metrics
To summarise, Pakka’s stock has reached a new 52-week low of Rs.104.4 after a sustained period of price decline. The stock’s performance over the last year shows a return of -66.88%, contrasting with the Sensex’s positive 4.53% return. Financial indicators reveal a decline in net sales and profits, with operating cash flow at a low level and interest coverage below 1. Institutional investors have reduced their holdings, and the stock trades below all major moving averages.
While the stock’s valuation metrics suggest a discount relative to peers, the recent financial results and market trends have contributed to the current price level. The broader market continues to show resilience, with the Sensex near its 52-week high and maintaining bullish moving averages.
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