MoneyWorks4Me

Check Before You Invest : Paradeep Parivahan Ltd

BSE: 544383 NSE: ISIN: INE0SMW01011
  |   Sector:  Transportation & Logistics   |   Industry:  Port

Snapshot

Q.1 Which industry/sub-sector does Paradeep Parivahan Ltd belong to?
Paradeep Parivahan Ltd belongs to the Transportation & Logistics sector, operating specifically within the Port segment.
Q.2 Is Paradeep Parivahan Ltd a good quality company?
Paradeep Parivahan 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 Paradeep Parivahan Ltd undervalued or overvalued?
Paradeep Parivahan 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 0-year
Historic Median
Price to Earnings 14.18 22.16
Price to Book 2.97 1.79
Price to Sales 1.14 2.85
EV to EBITDA 8.87 18.50
Q.4 Is Paradeep Parivahan Ltd a good buy now?
Paradeep Parivahan 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.

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

Q.1 Debt to Equity ratio of Paradeep Parivahan Ltd?
Paradeep Parivahan Ltd Debt-to-Equity ratio is 0.44, which is above the industry average of , indicating higher debt levels in the industry.

Q.2 Debt to cash flow from operations of Paradeep Parivahan Ltd?
Paradeep Parivahan Ltd Debt to cash flow from operations is 38.49, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Paradeep Parivahan Ltd?

Q.1 Promoter shareholding and pledge status of Paradeep Parivahan Ltd?
Promoters hold 65.96% of the Paradeep Parivahan Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Paradeep Parivahan Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Paradeep Parivahan Ltd vs industry peers?
Paradeep Parivahan Ltd revenue CAGR is %, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) - 20.7
Operating Profit Growth (%) - 16.4
Net Profit Growth (%) - 18.8
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 1.55 0.61
ROE (%) - 2.15
ROCE (%) - 3.81
Cash Conversion Cycle (days) - 46

Valuation & price assessment

Q.1 Stock return of Paradeep Parivahan Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 128.16% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 128.2%
Q.2 Valuation ratios of Paradeep Parivahan Ltd vs historical?
The current P/E ratio of 14.18 is lower than its historical median of 22.16, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings 14.18 22.16 -
Price to Book 2.97 1.79 -
Price to Sales 1.14 2.85 -
EV to EBITDA 8.87 18.50 -

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