Check Before You Invest : Parth Electricals & Engineering Ltd

Snapshot

Q.1 Which industry/sub-sector does Parth Electricals & Engineering Ltd belong to?

Parth Electricals & Engineering Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Parth Electricals & Engineering Ltd a good quality company?

Parth Electricals & Engineering Ltd is a average quality company, based on a somewhat consistent 4-year financial track record.

Q.3 Is Parth Electricals & Engineering Ltd undervalued or overvalued?

Parth Electricals & Engineering Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Parth Electricals & Engineering Ltd a good buy now?

Parth Electricals & Engineering Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Parth Electricals & Engineering Ltd?

Parth Electricals & Engineering Ltd revenue growth is 101.3% for FY-2025, which is above its 3-year CAGR of 66.28%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Parth Electricals & Engineering Ltd?

Parth Electricals & Engineering Ltd Return on capital employed is 33.31% for FY-2025, which is in line with its 3-year historical median of 32.82%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Parth Electricals & Engineering Ltd?

Parth Electricals & Engineering Ltd Return on Asset is 11.69%, which is above its 3-year historical median of 7.87%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Parth Electricals & Engineering Ltd?

Parth Electricals & Engineering Ltd Return on equity is 36.73% for FY-2025, which is in line with its 3-year historical median of 36.73%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Parth Electricals & Engineering Ltd?

Parth Electricals & Engineering Ltd Cash conversion cycle is 22 days, in line with its 3-year historical median of 22 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	2.02	1.53
ROE	36.73	36.73
ROCE	33.31	32.82
Cash Conversion Cycle	22 days	22 days

Q.6 Gross Profit margin of Parth Electricals & Engineering Ltd?

Parth Electricals & Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.8% for FY-2025, which is in line with its 3-year median of 8.8%, indicating stable margins.

Q.7 Operating Profit Margin of Parth Electricals & Engineering Ltd?

Parth Electricals & Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.16% for FY-2025, which is in line with its 3-year median of 10.16% indicating stable margins.

Q.8 Net Profit Margin of Parth Electricals & Engineering Ltd?

Parth Electricals & Engineering Ltd Net Profit Margin is 5.79% for FY-2025, is above with its 3-year median of 5.31%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	8.8	8.8
Operating Profit Margin	10.16	10.16
Net Profit Margin	5.79	5.31

Q.9 Debt to Equity ratio of Parth Electricals & Engineering Ltd?

Parth Electricals & Engineering Ltd Debt-to-Equity ratio is 0.82, which is above with the industry average of 0.38, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Parth Electricals & Engineering Ltd?

Parth Electricals & Engineering Ltd Debt to cash flow from operations is 110.35, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Parth Electricals & Engineering Ltd?

Promoters hold 62.57% of the Parth Electricals & Engineering Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Parth Electricals & Engineering Ltd vs industry peers?

Parth Electricals & Engineering Ltd revenue CAGR is 66.28%, compared to the industry median CAGR of 27.31%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	101.3	27.3
Gross Profit Growth	87.5	37.5
Operating Profit Growth	100	41.2
Net Profit Growth	100	44.2

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	2.02	1.2
ROE	36.73	15.67
ROCE	33.31	17.74
Cash Conversion Cycle (days)	22.09	90

Valuation & price assessment

Q.1 Stock return of Parth Electricals & Engineering Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 Valuation ratios of Parth Electricals & Engineering Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	46.56	32.69	44.19
Price to Book	4.59	7.43	4.79
Price to Sales	2.7	1.89	3.09
EV to EBITDA	24.91	17.59	21.59

Check more companies

1. Schneider Ele. Infra

2. Emmvee Photovoltaic

3. TD Power Systems

4. Inox Wind

5. V-Guard Inds.

6. Atlanta Electricals

7. Voltamp Transformers

8. Quality Power Elect.

9. Transformers & Rect

10. Genus Power Infra

Check trending companies

1. Tata Elxsi Ltd.

2. Shree Cement Ltd.

3. Amara Raja Energy & Mobility Ltd.

4. Vishal Mega Mart Ltd.

5. Acme Solar Holdings Ltd.