⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
EIDPARRY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.1
| Stock Code | EIDPARRY | Market Cap | 15,619 Cr. | Current Price | 878 ₹ | High / Low | 1,247 ₹ |
| Stock P/E | 779 | Book Value | 127 ₹ | Dividend Yield | 0.00 % | ROCE | 1.66 % |
| ROE | -0.79 % | Face Value | 1.00 ₹ | DMA 50 | 978 ₹ | DMA 200 | 991 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | 0.71 % | PAT Qtr | 40.7 Cr. | PAT Prev Qtr | -27.9 Cr. |
| RSI | 31.2 | MACD | -32.0 | Volume | 75,771 | Avg Vol 1Wk | 1,26,490 |
| Low price | 639 ₹ | High price | 1,247 ₹ | Debt to equity | 0.43 | 52w Index | 39.3 % |
| Qtr Profit Var | 44.2 % | EPS | -38.9 ₹ | Industry PE | 20.6 |
📊 Core Financials
- Revenue growth: Weak, quarterly PAT recovery (40.7 Cr vs -27.9 Cr) but inconsistent.
- Profit margins: Very thin, EPS at -38.9 ₹ indicates losses.
- Debt ratios: Debt-to-equity at 0.43, moderate leverage.
- Cash flows: Limited visibility, profitability volatility raises concerns.
- Return metrics: ROCE 1.66 %, ROE -0.79 % — poor efficiency and negative shareholder returns.
💹 Valuation Indicators
- P/E ratio: Extremely high at 779, far above industry average (20.6), suggests overvaluation.
- P/B ratio: Current Price / Book Value ≈ 6.9, expensive relative to assets.
- PEG ratio: Not meaningful due to negative EPS.
- Intrinsic value: Current valuation not justified by fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in sugar and allied businesses, cyclical in nature.
- Exposure to ethanol and nutraceuticals provides diversification.
- Competitive advantage limited by commodity price fluctuations and regulatory dependence.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive only near strong support levels around 640–700 ₹.
- Long-term holding: Risky unless profitability stabilizes; better suited for traders than long-term investors at current valuations.
Positive
- Quarterly profit turnaround (PAT up 44.2 %).
- DII holdings increased (+0.71 %).
- Debt-to-equity ratio manageable at 0.43.
Limitation
- Negative ROE and weak ROCE.
- Extremely high P/E ratio compared to industry.
- No dividend yield, limiting investor returns.
Company Negative News
- Volatile earnings with prior quarter losses.
- Weak technicals: RSI at 31.2 (oversold), MACD negative.
Company Positive News
- Recent profitability improvement.
- Strong industry demand for ethanol blending and allied products.
Industry
- Sugar industry is cyclical, heavily influenced by government policies and monsoon conditions.
- Industry PE at 20.6, highlighting EID Parry’s overvaluation.
Conclusion
- Fundamentals remain weak despite short-term profit recovery.
- Stock appears overvalued relative to industry peers.
- Entry advisable only near lower support levels; long-term holding requires caution until consistent profitability is demonstrated.
Would you like me to also prepare a comparative HTML report showing how EID Parry stacks up against its closest peers in the sugar/ethanol sector?