Check Before You Invest : Parnax Lab Ltd

Q: 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: Is Parnax Lab Ltd a good quality company?

Parnax Lab Ltd is a weak quality company, based on a inconsistent 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: Is Parnax Lab Ltd undervalued or overvalued?

Parnax Lab 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. Price to Earnings, Current: 129.13, Historic Median: 70.89. Price to Book, Current: 7.28, Historic Median: 5.39. Price to Sales, Current: 24.2, Historic Median: 15.02. EV to EBITDA, Current: 89.89, Historic Median: 61.38

Q: 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

Q: 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 -1.78%, indicating slower growth.

Q: 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: 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: Net Profit Margin of Parnax Lab Ltd?

Parnax Lab Ltd Net Profit Margin is 19.87% for FY-2025, is above its 5-year median of 16.12%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 27.4, Historic Median: 22.7. Operating Profit Margin (%), Current: 17.61, Historic Median: 19.14. Net Profit Margin (%), Current: 19.87, Historic Median: 16.12

Q: 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: Return on capital employed (ROCE) of Parnax Lab Ltd?

Parnax Lab Ltd Return on capital employed is 8.61% for FY-2025, which is in line with its 5-year historical median of 8.61%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Parnax Lab Ltd

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 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 Parnax Lab Ltd undervalued or overvalued?

Parnax Lab 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	129.13	70.89
Price to Book	7.28	5.39
Price to Sales	24.2	15.02
EV to EBITDA	89.89	61.38

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

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 Parnax Lab Ltd?

Parnax Lab Ltd revenue growth is -5.7% for FY-2025, which is below its 5-year CAGR of -1.78%, 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 its 5-year median of 16.12%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	27.4	22.7
Operating Profit Margin (%)	17.61	19.14
Net Profit Margin (%)	19.87	16.12

B: Does the business utilize capital efficiently?

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 capital employed (ROCE) of Parnax Lab Ltd?

Parnax Lab Ltd Return on capital employed is 8.61% for FY-2025, which is in line with its 5-year historical median of 8.61%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Parnax Lab Ltd?

Parnax Lab Ltd Return on equity is 6.38% for FY-2025, which is below its 5-year historical median of 6.92%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Parnax Lab Ltd?

Parnax Lab Ltd Cash conversion cycle is 7 days, below its 5-year historical median of 37 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.3	0.35
ROE (%)	6.38	6.92
ROCE (%)	8.61	8.61
Cash Conversion Cycle	7 days	37 days

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

Q.9 Debt to Equity ratio of Parnax Lab Ltd?

Parnax Lab Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.14, 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

D: Promoter shareholding and pledge status of Parnax Lab Ltd?

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)

E: How does Parnax Lab Ltd performance compare with that of its Peers?

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 5.35%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-5.7	5.4
Gross Profit Growth (%)	-33.3	14
Operating Profit Growth (%)	-50	11.5
Net Profit Growth (%)	-50	12

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.3	0.79
ROE (%)	6.38	9.17
ROCE (%)	8.61	11.52
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 16.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	16.5%	36.5%	28.3%	60.2%

Q.2 Valuation ratios of Parnax Lab Ltd vs historical?

The current P/E ratio of 129.13 is higher than its historical median of 70.89, indicating that the stock is trading above 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	129.13	70.89	31.09
Price to Book	7.28	5.39	2.85
Price to Sales	24.2	15.02	2.82
EV to EBITDA	89.89	61.38	15.99

Check more companies

4. Wockhardt

7. Neuland Laboratories

8. Piramal Pharma

9. Astrazeneca Pharma

10. Granules India

Check trending companies

1. Muthoot Finance Ltd.

2. Bharat Petroleum Corporation Ltd.

3. KEC International Ltd.

4. Eternal Ltd.

5. Concord Biotech Ltd.

Check Before You Invest : Parnax Lab Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

Create stable, long-term investment portfolio with strong, consistent stocks.

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.