Pokarna Limited
Pokarna Limited Fundamental Analysis
Pokarna Limited (POKARNA.NS) shows moderate financial fundamentals with a PE ratio of 21.78, profit margin of 16.58%, and ROE of 15.01%. The company generates $6.9B in annual revenue with strong year-over-year growth of 35.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 88.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze POKARNA.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakPOKARNA.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPOKARNA.NS trades at attractive valuation levels.
Growth Score
ModeratePOKARNA.NS shows steady but slowing expansion.
Financial Health Score
ExcellentPOKARNA.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentPOKARNA.NS achieves industry-leading margins.
Key Financial Metrics
Is POKARNA.NS Expensive or Cheap?
P/E Ratio
POKARNA.NS trades at 21.78 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, POKARNA.NS's PEG of -1.04 indicates potential undervaluation.
Price to Book
The market values Pokarna Limited at 3.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.31 times EBITDA. This is generally considered low.
How Well Does POKARNA.NS Make Money?
Net Profit Margin
For every $100 in sales, Pokarna Limited keeps $16.58 as profit after all expenses.
Operating Margin
Core operations generate 25.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.01 in profit for every $100 of shareholder equity.
ROA
Pokarna Limited generates $8.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Pokarna Limited produces operating cash flow of $880.75M, showing steady but balanced cash generation.
Free Cash Flow
Pokarna Limited produces free cash flow of $635.41M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $20.49 in free cash annually.
FCF Yield
POKARNA.NS converts 2.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How POKARNA.NS Stacks Against Its Sector Peers
| Metric | POKARNA.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.78 | 25.30 | Better (Cheaper) |
| ROE | 15.01% | 1305.00% | Weak |
| Net Margin | 16.58% | -43804.00% (disorted) | Strong |
| Debt/Equity | 0.38 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.31 | 10.42 | Strong Liquidity |
| ROA | 8.73% | -1543535.00% (disorted) | Weak |
POKARNA.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Pokarna Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
136.12%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
165.16%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-57.81%
Industry Style: Cyclical, Value, Infrastructure
Declining