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INVESTMENT INSIGHTS

Check Before You Invest : Parnax Lab Ltd

BSE: 506128 NSE: ISIN: INE383L01019
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Parnax Lab Ltd belong to?
Parnax Lab Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Parnax Lab Ltd a good quality company?
Parnax Lab Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Parnax Lab Ltd undervalued or overvalued?
Parnax Lab Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Parnax Lab Ltd a good buy now?
Parnax Lab 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 Parnax Lab Ltd?
Parnax Lab Ltd revenue growth is -5.7% for FY-2025 , which is below its 5 year CAGR of -1.8% , indicating slower growth.
Q.2 Gross Profit margin of Parnax Lab Ltd?
Parnax Lab Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.4% for FY-2025 , which is above its 5 year median of 22.7% , indicating increasing margins.
Q.3 Operating Profit Margin of Parnax Lab Ltd?
Parnax Lab Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.61% for FY-2025 , which is below its 5 year median of 19.14% indicating decreasing margins.
Q.4 Net Profit Margin of Parnax Lab Ltd?
Parnax Lab Ltd Net Profit Margin is 19.87% for FY-2025 , is above with its 5 year median of 16.12%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 27.4 22.7
Operating Profit Margin 17.61 19.14
Net Profit Margin 19.87 16.12
Q.5 Return on Asset of Parnax Lab Ltd?
Parnax Lab Ltd Return on Asset is 5.95%, which is above its 5 year historical median of 5.58%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Parnax Lab Ltd?
Parnax Lab Ltd Return on equity is 6.38% for FY-2025 , which is below its historical median of 6.92%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Parnax Lab Ltd?
Parnax Lab Ltd Return on capital employed is 8.61% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Parnax Lab Ltd?
Parnax Lab Ltd Cash conversion cycle is 7 days, below its historical median of 37 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.3 0.35
ROE 6.38 6.92
ROCE 8.61 8.61
Cash Conversion Cycle 7 days 37 days
Q.9 Debt to Equity ratio of Parnax Lab Ltd?
Parnax Lab Ltd Debt-to-Equity ratio is 0.00 , 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 Parnax Lab Ltd?
Parnax Lab Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Parnax Lab Ltd?
Promoters hold 72.30% of the Parnax Lab Ltd, with 9.41% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Parnax Lab Ltd vs industry peers?
Parnax Lab Ltd revenue CAGR is -1.78% , compared to the industry median CAGR of 5.51% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 7 138.8
Gross Profit 1.9 16.2
Operating Profit 1 16
Net Profit 1 5.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.3 0.79
ROE 6.38 9.17
ROCE 8.61 11.78
Cash Conversion Cycle (days) 7.23 76

Valuation & price assessment

Q.1 Stock return of Parnax Lab Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 16.7% 49.4% 30.7% 53.9%
Q.3 Valuation ratios of Parnax Lab Ltd vs historical?
The current P/E is higher 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 135.92 69.56 40.28
Price to Book 7.66 5.36 2.77
Price to Sales 25.47 14.82 2.65
EV to EBITDA 94.64 60.69 15.67

Check more companies

1. Ajanta Pharma
2. JB Chem & Pharma
3. Emcure Pharma
4. Gland Pharma
5. Wockhardt
6. Sai Life Sciences
7. Pfizer
8. Piramal Pharma
9. Astrazeneca Pharma I
10. Onesource Specialty
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