Recent Price Movement and Market Context
The stock has recorded a consecutive three-day decline, resulting in a cumulative return of -4.97% over this period. Today’s performance saw the stock underperform its sector by 1.85%, reflecting continued pressure on the share price. Panasonic Energy India Company is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downtrend in the short to long term.
In contrast, the broader market has shown resilience. The Sensex opened flat with a minor dip of 41.32 points but has since edged up to 84,595.65, a 0.04% gain. The index remains just 1.85% shy of its 52-week high of 86,159.02 and is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. Mid-cap stocks have also contributed positively, with the BSE Mid Cap index gaining 0.06% today.
Long-Term Performance and Financial Metrics
Over the past year, Panasonic Energy India Company’s stock has declined by 35.04%, a stark contrast to the Sensex’s 5.49% gain during the same period. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.
Financially, the company’s net sales have shown a modest compound annual growth rate of 5.28% over the last five years, while operating profit has grown at a rate of 14.40% annually during the same period. However, recent quarterly results have reflected a challenging environment. The company reported negative results for three consecutive quarters, with the latest quarter’s PBDIT at Rs.2.24 crore, the lowest recorded in recent periods. Operating profit as a percentage of net sales for the quarter stood at 3.26%, also at a low point.
Profit after tax (PAT) for the latest quarter was Rs.1.92 crore, showing a decline of 9.3% compared to the average of the previous four quarters. Over the past year, profits have fallen by 53.9%, indicating pressure on the company’s earnings despite a relatively stable debt position.
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Valuation and Shareholding Structure
Despite the recent price decline, Panasonic Energy India Company offers a dividend yield of 3.04% at the current price level. The company’s return on equity (ROE) stands at 6.1%, and it trades at a price-to-book value of 2.2, which is considered fair relative to its peers’ historical valuations. The company maintains a low average debt-to-equity ratio of zero, indicating minimal leverage on its balance sheet.
Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction. This ownership structure has remained consistent amid the stock’s recent price movements.
Sector and Industry Positioning
Operating within the FMCG sector, Panasonic Energy India Company faces a competitive landscape where market dynamics and consumer preferences continue to evolve. The sector itself has shown mixed performance, with some segments and companies outperforming broader indices, while others, including Panasonic Energy, have experienced headwinds reflected in their stock prices.
The company’s subdued growth in net sales and operating profit over the long term, combined with recent quarterly earnings declines, have contributed to the stock’s current valuation and price trajectory.
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Summary of Key Financial Indicators
To summarise, Panasonic Energy India Company’s stock has reached Rs.303, its lowest level in the past 52 weeks, reflecting a period of sustained price pressure. The stock’s performance over the last year contrasts sharply with the broader market indices, which have maintained positive returns. Financial results indicate subdued growth in sales and operating profit over the medium term, alongside recent quarterly earnings declines. The company’s balance sheet remains conservatively managed with low debt, and valuation metrics suggest the stock is trading at a reasonable level compared to peers.
While the broader market and sector indices have shown resilience, Panasonic Energy India Company’s stock continues to face challenges that have influenced its recent price movements and valuation.
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