Paushak Ltd: Is It a Deep Value Opportunity?

Paushak Ltd has a deep value score of 60/100 (rated Strong). This score is calculated from three components

• Earnings Score: 27/40 — measures PAT growth momentum across quarters
• Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
• Quality Score: 19/25 — operational quality (margins, revenue growth, valuation)

Paushak Ltd's quarterly profit (PAT) growth trajectory

• Latest Quarter PAT Growth (QoQ): +103%
• Previous Quarter PAT Growth (QoQ): -28%
• 2 Quarters Ago PAT Growth (QoQ): -28%
• PAT Acceleration: +65.6pp (profits are accelerating)
• 1 consecutive quarters of positive PAT growth

Paushak Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

• 1-Year Return vs Nifty 500: -23%
• 6-Month Return vs Nifty 500: -23%
• 3-Month Return vs Nifty 500: -1%
• Yet average quarterly PAT growth is +15% — earnings are improving
• The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

Paushak Ltd's earnings momentum is Steady — consistent growth.

• PAT QoQ progression: -28% → -28% → +103% (2Q ago → 1Q ago → latest)
• Acceleration: +65.6pp

Paushak Ltd's valuation metrics

• Price-to-Earnings (PE): 27.9x
• Price-to-Book (PB): 2.2x
• PEG Ratio: 26.1x

Paushak Ltd's revenue and margin trends

• Latest Quarter Revenue Growth (QoQ): +13%
• Average Quarterly Revenue Growth: +0%
• Revenue Acceleration: +3.9pp
• Latest OPM Change: +7.0pp (margins expanding)
• Average OPM Change: -0.5pp

Paushak Ltd key facts

• Sector: Speciality Chemicals
• Market Cap: ₹1.1K Cr
• Rank in Speciality Chemicals: #1 by value score
• Overall rank among all deep value stocks: #44

Paushak Ltd shows strong deep value signals — good score (60/100), accelerating earnings, and significant underperformance vs Nifty.

• Value Score: 60/100 (Strong)
• Earnings: Accelerating
• 1Y Underperformance: -23% vs Nifty 500

Speciality Chemicals deep value sector overview

• 1 deep value stocks in this sector
• Average value score: 60/100
• Avg PAT acceleration: +65.6pp
• Top pick: Paushak Ltd

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.