EIDPARRY - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 2.1

📊 Core Financials

• Revenue & Profitability: PAT improved to 40.7 Cr. from -27.9 Cr., but EPS remains negative (-38.9 ₹).
• Margins: ROE at -0.79% and ROCE at 1.66% reflect poor efficiency and weak profitability.
• Debt Ratios: Debt-to-equity at 0.43 — moderate leverage, manageable but not debt-free.
• Cash Flows: Dividend yield at 0.00% — no shareholder returns, reinvestment focus but weak financial health.

💹 Valuation Indicators

• P/E Ratio: 901 vs Industry PE of 23.8 — extremely overvalued due to negative EPS.
• P/B Ratio: Current Price 1,015 ₹ / Book Value 127 ₹ ≈ 7.99, premium valuation.
• PEG Ratio: Not available — growth outlook uncertain.
• Intrinsic Value: Current valuation unjustified given losses and weak return ratios.

🏢 Business Model & Competitive Advantage

• Operates in sugar, nutraceuticals, and allied businesses, benefiting from cyclical demand in agriculture and food sectors.
• Competitive advantage lies in diversified operations and established brand, but profitability remains under pressure.
• Institutional sentiment positive: FII holdings increased (+0.11%), DII holdings increased (+1.11%).

📈 Technical & Entry Zone

• DMA 50: 1,040 ₹ | DMA 200: 1,000 ₹ — stock trading near averages.
• RSI: 48.4 — neutral zone.
• MACD: -3.43 — bearish momentum persists.
• Entry Zone: Attractive only near 850–900 ₹ if fundamentals improve.
• Long-Term Holding: Risky unless profitability stabilizes and return ratios strengthen.

✅ Positive

• PAT turned positive at 40.7 Cr. after a loss in the previous quarter.
• DII holdings increased (+1.11%), reflecting domestic institutional support.
• Diversified business model across sugar and nutraceuticals.

⚠️ Limitation

• Extremely high P/E ratio (901) compared to industry average.
• Negative EPS (-38.9 ₹) and weak ROE (-0.79%).
• No dividend yield, limiting shareholder returns.

📉 Company Negative News

• Profitability ratios remain below industry benchmarks.
• Valuations remain stretched despite weak fundamentals.

📈 Company Positive News

• PAT recovery from -27.9 Cr. to 40.7 Cr. shows operational improvement.
• Institutional investors increased holdings (FII +0.11%, DII +1.11%).

🏭 Industry

• Industry PE at 23.8 — sector trades at moderate valuations.
• Sugar industry benefits from cyclical demand and government policies but faces margin volatility.

🔎 Conclusion

EIDPARRY is financially stable with moderate debt but suffers from weak profitability and extremely high valuations. Entry is advisable only near 850–900 ₹, with cautious long-term holding. Improvement in earnings and return ratios will be critical for sustainable upside.