Altman Z″
Needs current assets and current liabilities.
PANCHATV · Textile · INE0VXN01011
Analyst mean 0.00 · 0 analysts · 0% bullishThis company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
Panchatv Bharat Limited operates in the textile and garment industry, specializing in the manufacturing and distribution of finished denim fabrics under its in-house brand name 'NJD'. The company was originally incorporated in March 2024 to acquire and consolidate three proprietorship firms owned by its promoters (M/s SG Trader, M/s SR Fabrics, and M/s Neelmadhav Textiles). It manufactures denim fabrics primarily through asset-light third-party job work arrangements with partner facilities located in Narol and Piplaj, Ahmedabad, supplemented by 10 leased loom machineries situated in Daskroi, Ahmedabad (commenced July 2025). The company also buys finished denim fabrics from third-party distributors and suppliers. Products are sold in bulk to garment manufacturers, distributors, dealers, and wholesalers across multiple Indian states, with Delhi accounting for 67.59% of FY26 revenue from operations. In FY26, traded denim fabrics accounted for 76.23% (Rs. 43.34 crore) of revenue while manufactured denim fabrics accounted for 23.77% (Rs. 13.52 crore).
Asset-light business model enabling operational flexibility and low capex, established customer base of over 89 active distributors, in-house brand 'NJD', and experienced promoter leadership with over 30 years in textile trading.
Panchatv Bharat Limited is engaged in the manufacturing and wholesale trading/distribution of finished denim fabrics under its own brand name 'NJD' through third-party arrangements and leased loom machineries.
Source: p.129, 137, 139, 142
The comparable set the company chose, which is itself a disclosure.
As presented in the offer document. Post-listing figures are in the statements above.
| Basis | Period | Related party revenue cr | Pat cr | Pat margin | Revenue cr | Pat margin derived | Cff cr |
|---|---|---|---|---|---|---|---|
| standalone | FY26 | 0 | 4.031 | 7.09% | 56.8511 | yes | 5.0089 |
| standalone | FY25 | 0 | 2.8281 | 5.77% | 48.9933 | yes | 2.1246 |
| consolidated | FY24 | 0 | 2.0211 | 5.14% | 39.3125 | yes | 0.4031 |
Written before listing, answered from the document itself.
How are the fresh issue proceeds of Rs. 24.58 crore allocated, and what proportion goes to working capital and general corporate purposes?
Fresh issue proceeds are allocated as: Rs. 6.0000 crore for property purchase/fit-out in Delhi, Rs. 11.5000 crore for working capital, and Rs. 3.6688 crore for General Corporate Purposes (GCP). Working capital and GCP combined represent 61.70% of total issue proceeds.
p.83
What is the promoters' shareholding pre and post-issue, and what is their acquisition cost history?
Promoters Sanjay Gupta, Sooraj Gupta, and Sanyogita Gupta hold 92.91% pre-issue, diluting to 65.02% post-issue. Promoters acquired 3,629,500 bonus shares in May 2024 at Rs. 0.00 cost, bringing their Weighted Average Cost of Acquisition (WACA) down to Rs. 11.11 per share compared to the IPO price of Rs. 140.00.
p.61, 62, 77, 105
What related-party transactions and promoter business consolidations took place prior to the IPO?
On April 6, 2024, the company acquired the business assets and liabilities of three promoter proprietorship firms (M/s SG Trader, M/s SR Fabrics, M/s Neelmadhav Textiles) via Business Transfer Agreements. Director Sanyogita Gupta provided unsecured loans of Rs. 0.5306 crore during FY26, and director remuneration totaled Rs. 0.2400 crore.
p.46, 51, 208
Why did operating cash flow collapse into negative territory in FY26 despite reported PAT growth?
In FY26, restated PAT grew 42.53% to Rs. 4.0310 crore, but Cash Flow from Operations (CFO) dropped to -Rs. 10.8512 crore (down from +Rs. 0.7182 crore in FY25). This negative cash conversion was driven by Rs. 6.1674 crore tied up in inventory expansion (rising to Rs. 16.8586 crore or 102 inventory days) and trade payables contraction of Rs. 5.0012 crore.
p.21, 48, 51
What secretarial, statutory compliance, and workforce findings exist for the company?
The company operates with a workforce of only 9 employees. Disclosures note ROC filing errors (AOC-4 rent misstatement, DIR-12, CHG-1) requiring Form GNL-1 for penalty adjudication, along with pending GST show cause notices against promoter Sanjay Gupta (Rs. 0.0270 crore) and Sooraj Gupta (Rs. 0.0191 crore).
p.20, 21, 140, 237
What are the lot size, retail ticket cost, market maker reservation, and exit conditions for public investors?
The fixed issue price is Rs. 140.00 per share with a market lot size of 1,000 shares, requiring a minimum retail application of 2 lots (2,000 shares) amounting to Rs. 2,80,000. Trading occurs strictly in standardized market lots of 1,000 shares, and because lots are indivisible, partial exit or fractional lot trading is impossible. Giriraj Stock Broking Private Limited is the Market Maker with 88,000 reserved shares (5.01%) and a mandatory 3-year obligation period. Standard SME 5% price circuit limits apply.
p.1, 3, 57, 60, 299
What the issue priced at, on the figures in the document.
Pe basis: Based on Basic & Diluted EPS of Rs. 9.84 for FY 2025-26 at Issue Price of Rs. 140.00
The company compares itself with Anjani Synthetics Limited, stating that it is the only listed company in India engaged in a similar line of business, though not strictly comparable due to difference in turnover scale.
Source: p.101, 102
How the book filled. A category that bid far above the rest is a different signal from a uniformly covered issue.
| Date | Name | Shares | Price per share | Category | Issue type | Source |
|---|---|---|---|---|---|---|
| 2024-03-06 | Sanjay Gupta & Sooraj Gupta | 10000 | 10 | promoter | initial | p.61, 62 |
| 2024-05-15 | Sanjay Gupta & Sooraj Gupta | 203500 | 200 | promoter | preferential | p.61, 62 |
| 2024-05-18 | Sanjay Gupta & Sooraj Gupta | 3629500 | 0 | promoter | bonus | p.61, 62 |
| 2024-06-01 | Innovest Ventures, Samta Devi Baid & Others | 252000 | 110 | other | preferential | p.61, 63 |
Ceo: Sanjay Gupta
Indirect tax GST proceedings against Promoters: Show cause notice against Sanjay Gupta (M/s SR Fabrics) under Section 73 of CGST/DGST Act for FY18 involving Rs. 0.0270 crore (Rs. 2.70 lakhs); order against Sooraj Gupta (M/s SG Trader) under Section 74 of IGST/CGST/SGST Act for FY20 involving Rs. 0.0191 crore (Rs. 1.91 lakhs). Total tax proceedings: Rs. 0.0460 crore (Rs. 4.60 lakhs). Criminal or civil litigation: NIL.
Auditor name: M/s J V A & Associates, Chartered Accountants
Skin in game: Promoters held 92.91% pre-issue shareholding and will hold 65.02% post-issue.
Auditor changed last 3y: No
Source: p.20, 21, 50, 237, 240
Transactions with promoters, directors and their entities, as disclosed.
| Counterparty | Amount cr | Nature | Relationship | Core function | Source |
|---|---|---|---|---|---|
| Sanyogita Gupta | 0 | loan taken | director | no | p.51, 208 |
| Sanyogita Gupta | 0.5306 | loan taken | director | no | p.51, 208 |
| Sanyogita Gupta | 0.0015 | rent | director | no | p.51, 208 |
| Sanjay Gupta | 0.12 | remuneration | director | yes | p.51, 208 |
| Sooraj Gupta | 0.12 | remuneration | director | yes | p.51, 208 |
| Mohan Mishra | 0.0489 | remuneration | other | yes | p.51, 208 |
| Chanchal Khandelwal | 0.036 | remuneration | other | yes | p.51, 208 |
CARO and prospectus notes disclose inadvertent errors and inconsistencies in ROC filings following incorporation (Forms AOC-4, DIR-12, CHG-1). Form GNL-1 filed for adjudication of penalties. In Form AOC-4 for FY 2024-25, rent paid was misstated as Rs. 1.2 Lakhs instead of Rs. 8.10 Lakhs and P&L attachment differed from form entries. Vehicle loan CHG-1 pending. Late fees, interest and penalties paid for statutory dues were Rs. 0.0033 crore (Rs. 0.33 lakhs) in FY26, Rs. 0.0324 crore (Rs. 3.24 lakhs) in FY25, and Rs. 0.0004 crore (Rs. 0.04 lakhs) in FY24.
Defaults disclosed: Yes
Source: p.20, 21, 205, 214
Numbered markers are corporate actions and, once the filings are read, capital and governance events. Prices are split-adjusted so the series is continuous.
What the numbers mean when read together — computed from the filings, not a score.
The business reported a profit, yet its operations drained cash rather than generating it. Profit that comes with negative operating cash is the single most important thing to understand here.
Why this reading: Flagged on a single year deliberately: negative operating cash alongside a reported profit is plain, material, and hard to explain benignly — exactly the kind of obvious signal that should never be smoothed over.
Operating cash flow ₹-11 cr against trailing net profit ₹4 cr. When operations consume cash while the P&L shows profit, ask whether receivables are ballooning, revenue is booked ahead of collection, or costs are being capitalised.
Borrowings rose 85% over 2 years, but only about -1% of the new debt shows up as productive assets — worth understanding what the rest funded.
Why this reading: Kept at caution rather than flagged: the disproportion is real but not extreme, and part of the borrowing may fund working capital or intangibles that this view doesn't capture.
New borrowing ₹7 cr against an asset build of ₹0 cr. Some gap is normal (working capital, dividends); a persistent or widening gap is where it becomes a concern.
Free cash flow is negative — the business consumes more than it generates once capex is paid. Fine if it is deliberate growth investment; a problem if it is structural.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Latest free cash flow ₹-11 cr, negative in 2 of 3 years. Check whether the burn funds expansion (dark stores, plants, ports) or merely sustains operations.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are 48.8% of assets. Free cash flow negative in 2 of 3 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Revenue grew faster than the capital behind it, which is what operating leverage looks like: the existing asset base is working harder.
cumulative operating cash flow ÷ cumulative net profit
₹-11 cr ÷ ₹9 cr, over 3 years
-1.19×
Below 1.0 and persistent means profit is being recognised before the cash arrives.(net profit − operating cash flow) ÷ average total assets
(₹4 − ₹-11) cr ÷ average assets
48.8%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
7.1% × 1.68 × 2.67
31.9%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹7 cr ÷ ₹1 cr
5.67×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹14 cr ÷ ₹13 cr
1.12×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +-35% vs revenue +45%, FY2024 to FY2026
-80pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Median of the companies we hold in the same sector (Textile). Every figure on both sides is the live feed's trailing twelve months, so the two are measured the same way whatever depth of extraction this company has had. A number only means something next to something else — expensive against the market and cheap against peers are different facts.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 65.02% to 65.02% across these quarters.
Other held steady from 34.98% to 34.98% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Debtor days
How long customers take to pay | 42 | 64 | 63 |
| Inventory days
How long stock sits before it sells | 83 | 92 | 133 |
| Payable days
How long the company takes to pay suppliers | 54 | 80 | 34 |
| Cash conversion cycle
Debtor + inventory − payable days | 71 | 76 | 163 |
| Working capital days | 29 | 34 | 95 |
| ROCE %
Return on capital employed | — | 37.6% | 30.4% |
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue from operations | 39 | 49 | 57 |
| Other income | 0 | 0 | 0 |
| Depreciation | 0 | 0 | 0 |
| Finance cost | 0 | 1 | 1 |
| Profit before tax | 3 | 4 | 5 |
| Net profit (owners) | 2 | 3 | 4 |
| EPS (₹) | 2,020.00 | 6.91 | 9.84 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Item | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Equity Capital | 0 | 4 | 4 |
| Reserves | 0 | 5 | 9 |
| Borrowings | 8 | 8 | 14 |
| Net block | 0 | 0 | 0 |
| CWIP | 0 | 0 | 0 |
| Investments | 0 | 0 | 0 |
| Total Assets | 17 | 27 | 34 |
| Line | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Cash from operations | 0 | 1 | -11 |
| Cash from investing | 0 | 0 | 3 |
| Cash from financing | 0 | 2 | 5 |
| Free cash flow | -1 | 1 | -11 |
| Net change in cash | 0 | 3 | -3 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.