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Check Before You Invest : Parin Enterprises Ltd

BSE: 0 NSE: PARIN ISIN: INE00U801010
  |   Sector:  FMCG   |   Industry:  Household & Personal Products

Snapshot

Q.1 Which industry/sub-sector does Parin Enterprises Ltd belong to?
Parin Enterprises Ltd belongs to the FMCG sector, operating specifically within the Household & Personal Products segment.
Q.2 Is Parin Enterprises Ltd a good quality company?
Parin Enterprises 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 Parin Enterprises Ltd undervalued or overvalued?
Parin Enterprises 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 173.39 56.99
Price to Book 11.52 3.35
Price to Sales 9.83 2.00
EV to EBITDA 67.43 23.40
Q.4 Is Parin Enterprises Ltd a good buy now?
Parin Enterprises 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 Parin Enterprises Ltd?
Parin Enterprises Ltd revenue growth is 23.6% for FY-2025, which is above its 5-year CAGR of 8.12%, indicating faster growth.

Q.2 Gross Profit margin of Parin Enterprises Ltd?
Parin Enterprises Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.6% for FY-2025, which is above its 5-year median of 6.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Parin Enterprises Ltd?
Parin Enterprises Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.85% for FY-2025, which is above its 5-year median of 9.58% indicating increasing margins.

Q.4 Net Profit Margin of Parin Enterprises Ltd?
Parin Enterprises Ltd Net Profit Margin is 5.13% for FY-2025, is above its 5-year median of 3.51%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.6 6.9
Operating Profit Margin (%) 13.85 9.58
Net Profit Margin (%) 5.13 3.51

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Parin Enterprises Ltd?
Parin Enterprises Ltd Return on Asset is 4.46%, which is above its 5-year historical median of 3.31%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Parin Enterprises Ltd?
Parin Enterprises Ltd Return on capital employed is 10.89% for FY-2025, which is above its 5-year historical median of 9.19%. 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 Parin Enterprises Ltd?
Parin Enterprises Ltd Return on equity is 9.58% for FY-2025, which is above its 5-year historical median of 6.63%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Parin Enterprises Ltd?
Parin Enterprises Ltd Cash conversion cycle is 274 days, in line with its 5-year historical median of 274 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) 0.87 0.86
ROE (%) 9.58 6.63
ROCE (%) 10.89 9.19
Cash Conversion Cycle 274 days 274 days

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

Q.9 Debt to Equity ratio of Parin Enterprises Ltd?
Parin Enterprises Ltd Debt-to-Equity ratio is 0.92, which is above the industry average of 0.10, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Parin Enterprises Ltd?
Parin Enterprises Ltd Debt to cash flow from operations is 10.1, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Parin Enterprises Ltd?

Q.1 Promoter shareholding and pledge status of Parin Enterprises Ltd?
Promoters hold 72.76% of the Parin Enterprises Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Parin Enterprises Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Parin Enterprises Ltd vs industry peers?
Parin Enterprises Ltd revenue CAGR is 8.12%, compared to the industry median CAGR of 2.59%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 23.6 2.6
Gross Profit Growth (%) 150 16.2
Operating Profit Growth (%) 100 11.8
Net Profit Growth (%) 150 19
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.87 0.88
ROE (%) 9.58 8.9
ROCE (%) 10.89 10.3
Cash Conversion Cycle (days) 274.26 59

Valuation & price assessment

Q.1 Stock return of Parin Enterprises Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 69.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 69.1% 92.2% 73.3%
Q.2 Valuation ratios of Parin Enterprises Ltd vs historical?
The current P/E ratio of 173.39 is higher than its historical median of 56.99, 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 173.39 56.99 44.15
Price to Book 11.52 3.35 3.71
Price to Sales 9.83 2.00 4.58
EV to EBITDA 67.43 23.40 23.48

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