EIDPARRY - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.8

🌾 Core Financials Analysis

Profitability & Growth

EPS: ₹49.4 ➜ decent earnings, but Qtr Profit fell by 31.3%

PAT Qtr: ₹151 Cr vs ₹195 Cr ➜ significant drop ➜ signals earnings volatility

Efficiency Metrics

ROE: 9.54% | ROCE: 16.6% ➜ moderate returns ➜ room for improvement

Debt & Dividend

Debt-to-equity: 0.34 ➜ manageable but higher than peers in FMCG/agri space

Dividend Yield: 0.33% ➜ modest, not a dividend play

📌 Insight: Mixed financial signals — respectable EPS but weak ROE and falling profits.

📊 Valuation Check

Metric Value Commentary

P/E Ratio 30.1 above industry average (22.2) ➜ slightly expensive

P/B Ratio ~2.71 (₹1,209 / ₹446) ➜ reasonable given asset-heavy business

PEG Ratio -3.85 negative due to profit decline ➜ caution warranted

📉 Verdict: Valuation is not compelling, especially with weakening earnings. PEG is a red flag.

🌱 Business Model & Strategic Moat

Agro-based company with strong exposure to sugar, ethanol, and nutraceuticals

Beneficiary of ethanol blending policy and cyclical sugar demand

Moats

Integrated sugar operations and access to captive power

Long-standing presence in the agri-input sector via Coromandel International (subsidiary)

📌 Challenges

Sugar is cyclical and affected by monsoon & global prices

Policy dependency (especially ethanol)

Low margin in core segments and regulatory pricing caps

📈 Technical Pulse

RSI: 75.6 ➜ overbought zone ➜ risk of near-term pullback

MACD: 43.2 ➜ strong momentum ➜ bullish continuation

Price significantly above DMA 50 & 200 ➜ uptrend in place

✅ Suggested Entry Zone: ₹1,020–₹1,090 🌦️ Avoid chasing highs ➜ wait for RSI cooldown or retracement near DMA levels

🧭 Long-Term Investment View

Suitable for patient investors looking at

Exposure to ethanol policy tailwinds

Strategic value via holding in Coromandel International

🚧 Expect earnings lumpiness ➜ cyclical nature and commodity linkage

Monitor

Sugar realizations, ethanol offtake

Regulatory changes in agri & biofuels

Stake sale or unlocking value in subsidiaries

Want me to run a relative valuation or fundamentals comparison with Balrampur Chini or Triveni Engineering? We can see who’s sweetening the margins better.

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