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Check Before You Invest : Parmax Pharma Ltd

BSE: 540359 NSE: ISIN: INE240T01014
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Parmax Pharma Ltd belong to?
Parmax Pharma Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Parmax Pharma Ltd a good quality company?
Parmax Pharma Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Parmax Pharma Ltd undervalued or overvalued?
Parmax Pharma Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Parmax Pharma Ltd a good buy now?
Parmax Pharma Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Parmax Pharma Ltd?
Parmax Pharma Ltd revenue growth is 155.2% for FY-2025 , which is above its 5 year CAGR of 6.2% , indicating faster growth.
Q.2 Gross Profit margin of Parmax Pharma Ltd?
Parmax Pharma Ltd Gross profit margin which is the profit after deduction of direct costs, is -1% for FY-2025 , which is below its 5 year median of 12% , indicating decreasing margins.
Q.3 Operating Profit Margin of Parmax Pharma Ltd?
Parmax Pharma Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.9% for FY-2025 , which is below its 5 year median of 13.05% indicating decreasing margins.
Q.4 Net Profit Margin of Parmax Pharma Ltd?
Parmax Pharma Ltd Net Profit Margin is -7.42% for FY-2025 , is below with its 5 year median of -0.68%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin -1 12
Operating Profit Margin 0.9 13.05
Net Profit Margin -7.42 -0.68
Q.5 Return on Asset of Parmax Pharma Ltd?
Parmax Pharma Ltd Return on Asset is -12.36%, which is below its 5 year historical median of -0.58%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Parmax Pharma Ltd?
Parmax Pharma Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Parmax Pharma Ltd?
Parmax Pharma Ltd Return on capital employed is -29.88% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Parmax Pharma Ltd?
Parmax Pharma Ltd Cash conversion cycle is -56 days, below its historical median of -56 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.66 0.9
ROE - -
ROCE -29.88 3.96
Cash Conversion Cycle -56 days -56 days
Q.9 Debt to Equity ratio of Parmax Pharma Ltd?
Parmax Pharma Ltd Debt-to-Equity ratio is -4.07 , which is lower with the industry average of 0.15 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Parmax Pharma Ltd?
Parmax Pharma Ltd Debt to cash flow from operations is -8.45 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Parmax Pharma Ltd?
Promoters hold 30.80% of the Parmax Pharma Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Parmax Pharma Ltd vs industry peers?
Parmax Pharma Ltd revenue CAGR is 6.15% , compared to the industry median CAGR of 5.54% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 28.2 137.1
Gross Profit -0.3 15.1
Operating Profit 0.3 16
Net Profit -2.1 5.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.66 0.8
ROE - 8.91
ROCE -29.88 11.59
Cash Conversion Cycle (days) -55.87 76

Valuation & price assessment

Q.1 Stock return of Parmax Pharma Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -5.58% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - -5.6% -3.5% -23.3%
Q.3 Valuation ratios of Parmax Pharma Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 40.28
Price to Book -1.84 5.58 2.77
Price to Sales 0.85 0.49 2.65
EV to EBITDA -8.58 0.00 15.67

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