Pakka Ltd (PAKKA) AI Stock Analysis

• Market Cap: ₹3.85B
• Dividend Yield: N/A
• Average Volume (3M): 16.14K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.22
• Revenue Growth: -11.28%
• EPS Growth: -62.38%
• Country: IN
• Employees: 508
• Sector: Services
• Sector Strength: N/A
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.57
• Shares Outstanding: 44,948,100
• 10 Day Avg. Volume: 7,834
• 30 Day Avg. Volume: 16,140
• PEG Ratio: -1.27
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 1.76
• P/FCF Ratio: -3.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ₹85.00 ▼(-21.08% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is weighed down primarily by weak financial performance—especially negative free cash flow and poor cash conversion—alongside deteriorating revenue/profitability trends. Technicals also remain bearish with the stock below key moving averages and negative MACD. Valuation is comparatively neutral with a moderate P/E, but not enough to offset the fundamental and technical weaknesses.

Positive Factors

High gross margin

A gross profit margin of ~58.8% provides durable product-level profitability and a buffer versus raw-material swings. High gross margins support long-term margin sustainability, enable pricing flexibility and create capacity to fund R&D or marketing even if top-line recovery is gradual.

Improved leverage

A debt-to-equity of 0.46 and a 61.2% equity ratio indicate a conservative capital structure, reducing fixed-charge pressure and insolvency risk. Lower leverage gives management room to refinance, fund targeted investments or weather cyclical downturns without immediate capital raises.

Sustainable packaging focus

Strategic focus on compostable and paper-based packaging aligns with structural trends toward sustainability and regulatory pressure on plastics. This positioning supports durable demand, potential pricing premiums and stronger commercial ties with FMCG and foodservice customers over the medium term.

Negative Factors

Steep revenue decline

A ~59% revenue decline is a material structural setback that reduces scale economics and market presence. Persistent top-line weakness can permanently impair customer relationships, limit product investments, and force margin concessions, making recovery slower and more costly.

Weak cash generation

Negative free cash flow and very low operating cash conversion (OCF/Net Income ~0.075) indicate structural cash-generation issues. Poor cash flow limits working capital, capex and debt servicing capacity, raising refinancing and liquidity risk and constraining long-term strategic initiatives.

Weaker profitability & returns

Falling net margin and declining EBIT/EBITDA, alongside an ROE of 8.3%, signal deteriorating operational efficiency and returns on equity. Lower profitability reduces internal funding for growth, weakens competitiveness on investment, and may require structural cost or product strategy changes to restore returns.

Pakka Ltd Business Overview & Revenue Model

Company Description

Pakka Limited manufactures and sells paper and moulded products in India. The company operates through Paper, Pulp, and Other Products; and Moulded Products segments. It offers molded food service ware products under the CHUK brand; bleached and unbleached agricultural pulp products; and bleached, unbleached, and colored kraft products, as well as flexible packaging. The company also exports its products. The company was formerly known as Yash Pakka Limited and changed its name to Pakka Limited in July 2023. Pakka Limited was incorporated in 1981 and is based in Ayodhya, India.

How the Company Makes Money

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Pakka Ltd Financial Statement Overview

Summary

Income statement shows steep revenue decline (-59.3%) and weaker operating profitability (net margin down to 9.2% with declining EBIT/EBITDA margins). Balance sheet leverage is improved (debt-to-equity 0.46) but profitability is softer (ROE 8.3%). Cash flow is the main weakness with negative free cash flow and very low operating cash conversion (operating cash flow to net income 0.075).

Income Statement

Pakka Ltd has experienced a significant decline in revenue growth, with a negative growth rate of -59.3% in the latest year. The gross profit margin remains relatively strong at 58.8%, but the net profit margin has decreased to 9.2%. The EBIT and EBITDA margins have also declined, indicating reduced operational efficiency. Overall, the income statement reflects challenges in maintaining revenue and profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.46, indicating better leverage management. However, the return on equity has decreased to 8.3%, reflecting lower profitability relative to shareholder equity. The equity ratio stands at 61.2%, suggesting a stable capital structure. Despite improvements in leverage, the reduced profitability impacts the overall balance sheet strength.

Cash Flow

Pakka Ltd faces significant challenges in cash flow management, with a negative free cash flow and a concerning free cash flow to net income ratio of -16.1. The operating cash flow to net income ratio is low at 0.075, indicating insufficient cash generation from operations. The negative free cash flow growth highlights potential liquidity issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.74B	4.06B	4.05B	4.08B	2.91B	1.84B
Gross Profit	1.28B	2.39B	2.47B	1.12B	1.75B	1.12B
EBITDA	341.36M	744.05M	891.92M	886.18M	693.78M	425.46M
Net Income	99.75M	375.20M	434.03M	460.43M	357.10M	167.21M
Balance Sheet
Total Assets	8.27B	7.38B	5.07B	3.73B	3.24B	2.62B
Cash, Cash Equivalents and Short-Term Investments	252.21M	767.18M	563.54M	21.01M	49.69M	2.02M
Total Debt	2.99B	2.06B	1.84B	1.04B	1.04B	939.41M
Total Liabilities	3.77B	2.86B	2.55B	1.67B	1.59B	1.32B
Stockholders Equity	4.50B	4.52B	2.51B	2.06B	1.65B	1.30B
Cash Flow
Free Cash Flow	-1.39B	-1.80B	-126.37M	122.35M	32.14M	137.60M
Operating Cash Flow	344.42M	111.56M	469.56M	513.71M	324.72M	274.06M
Investing Cash Flow	-1.69B	-1.78B	-686.49M	-382.41M	-293.44M	-116.05M
Financing Cash Flow	885.59M	1.78B	758.67M	-170.98M	16.43M	-158.89M

Pakka Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 107.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PAKKA, the sentiment is Neutral. The current price of 107.7 is above the 20-day moving average (MA) of 84.50, above the 50-day MA of 89.66, and below the 200-day MA of 139.01, indicating a neutral trend. The MACD of -2.30 indicates Negative momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 72.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PAKKA.

Pakka Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPPINFRA	62 Neutral	₹3.36B	186.32	―	0.47%	-7.32%	-26.92%
ROHLTD	61 Neutral	₹8.62B	31.71	―	0.61%	10.77%	-4.40%
ZEEMEDIA	57 Neutral	₹4.61B	2.64	―	―	3.58%	18.64%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PAKKA	46 Neutral	₹3.85B	16.80	―	―	-11.28%	-62.38%
DISHTV	39 Underperform	₹4.12B	-0.66	―	―	-22.62%	66.73%

Pakka Ltd Corporate Events

Pakka Limited Publishes Q3 and Nine-Month FY26 Earnings Call Transcript

Pakka Limited has released the transcript of its Q3 and nine-month FY 2026 earnings conference call, during which management discussed the company’s financial performance for the period ended 31 December 2025. The transcript, published in compliance with SEBI’s disclosure regulations, has been made available on the company’s website, underscoring Pakka’s ongoing efforts to maintain transparency and timely communication with its shareholders and market stakeholders.

Pakka Ltd Releases Q3 and Nine-Month FY 2025-26 Investor Presentation

Pakka Ltd has released an investor presentation detailing its financial performance for the third quarter and nine months ended 31 December 2025, in line with its disclosure obligations under SEBI’s Listing Regulations. The presentation, which will be used during a scheduled group video conference investor call on 2 February 2026, is also available on the company’s website, providing shareholders and market participants with updated financial information and reinforcing the company’s ongoing engagement with investors and regulators.

Pakka Reschedules Q3 FY26 Investor Call to 2 February 2026

Pakka Limited has revised the schedule of its analyst and investor video conference call, which will now be held on Monday, 2 February 2026 at 4:00 p.m. IST to discuss the company’s financial performance for the third quarter and nine months ended 31 December 2025. The rescheduled group call, to be attended by key business, regional, finance, and legal executives, underscores the company’s ongoing engagement with the investment community and provides stakeholders an opportunity to gain insight into operational performance and strategic developments across its global and food services businesses.

Pakka Limited Files SEBI Regulation 74(5) Compliance Certificate for Q3 FY2025-26

Pakka Limited has submitted a compliance certificate for the quarter ended 31 December 2025 under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, as issued by its SEBI-registered registrar and share transfer agent, Skyline Financial Services Private Limited. The filing, which has been shared with both NSE and BSE and posted on the company’s website, underscores Pakka’s adherence to depository-related regulatory requirements and provides assurance to shareholders and market participants regarding the company’s ongoing compliance with securities market norms.