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Check Before You Invest : E.I.D. - Parry (India) Ltd

BSE: 500125 NSE: EIDPARRY ISIN: INE126A01031
  |   Sector:  Agriculture & Allied activities   |   Industry:  Sugar

Snapshot

Q.1 Which industry/sub-sector does E.I.D. - Parry (India) Ltd belong to?
E.I.D. - Parry (India) Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Sugar segment.
Q.2 Is E.I.D. - Parry (India) Ltd a good quality company?
E.I.D. - Parry (India) Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is E.I.D. - Parry (India) Ltd undervalued or overvalued?
E.I.D. - Parry (India) Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - 30.60
Price to Book 6.72 3.60
Price to Sales 4.79 3.93
EV to EBITDA 41.12 21.00
Q.4 Is E.I.D. - Parry (India) Ltd a good buy now?
E.I.D. - Parry (India) Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of E.I.D. - Parry (India) Ltd?
E.I.D. - Parry (India) Ltd revenue growth is 12.8% for FY-2025, which is above its 5-year CAGR of 11.06%, indicating faster growth.

Q.2 Gross Profit margin of E.I.D. - Parry (India) Ltd?
E.I.D. - Parry (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.7% for FY-2025, which is below its 5-year median of 16.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of E.I.D. - Parry (India) Ltd?
E.I.D. - Parry (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1.17% for FY-2025, which is below its 5-year median of 8.39% indicating decreasing margins.

Q.4 Net Profit Margin of E.I.D. - Parry (India) Ltd?
E.I.D. - Parry (India) Ltd Net Profit Margin is -13.52% for FY-2025, is below its 5-year median of 6.8%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 5.7 16.9
Operating Profit Margin (%) -1.17 8.39
Net Profit Margin (%) -13.52 6.8

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of E.I.D. - Parry (India) Ltd?
E.I.D. - Parry (India) Ltd Return on Asset is -9.44%, which is below its 5-year historical median of 4.88%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of E.I.D. - Parry (India) Ltd?
E.I.D. - Parry (India) Ltd Return on capital employed is -9.1% for FY-2025, which is below its 5-year historical median of 8.97%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.7 Return on Equity (ROE) of E.I.D. - Parry (India) Ltd?
E.I.D. - Parry (India) Ltd Return on equity is -15.74% for FY-2025, which is below its 5-year historical median of 6.99%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of E.I.D. - Parry (India) Ltd?
E.I.D. - Parry (India) Ltd Cash conversion cycle is 127 days, in line with its 5-year historical median of 127 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.71 0.65
ROE (%) -15.74 6.99
ROCE (%) -9.1 8.97
Cash Conversion Cycle 127 days 127 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of E.I.D. - Parry (India) Ltd?
E.I.D. - Parry (India) Ltd Debt-to-Equity ratio is 0.48, which is lower the industry average of 0.62, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of E.I.D. - Parry (India) Ltd?
E.I.D. - Parry (India) Ltd Debt to cash flow from operations is -16.83, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of E.I.D. - Parry (India) Ltd?

Q.1 Promoter shareholding and pledge status of E.I.D. - Parry (India) Ltd?
Promoters hold 41.44% of the E.I.D. - Parry (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does E.I.D. - Parry (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of E.I.D. - Parry (India) Ltd vs industry peers?
E.I.D. - Parry (India) Ltd revenue CAGR is 11.06%, compared to the industry median CAGR of 2.83%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 12.8 2.8
Gross Profit Growth (%) -30.4 3
Operating Profit Growth (%) -128.9 1.3
Net Profit Growth (%) -500 0.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.71 0.87
ROE (%) -15.74 7
ROCE (%) -9.1 8.97
Cash Conversion Cycle (days) 126.51 107

Valuation & price assessment

Q.1 Stock return of E.I.D. - Parry (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 13.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
13.5% 13.7% 17.7% -0.3%
Q.2 Valuation ratios of E.I.D. - Parry (India) Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 30.60, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - 30.60 13.25
Price to Book 6.72 3.60 1.05
Price to Sales 4.79 3.93 0.65
EV to EBITDA 41.12 21.00 8.73

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