EIDPARRY - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.4

📊 Core Financials

Earnings & Profitability: EPS of ₹–21.2 and a quarterly PAT of ₹–27.9 Cr (down from ₹76.6 Cr) reflect a sharp earnings reversal. ROCE at 1.66% and ROE at –0.79% are weak, indicating poor capital efficiency and negative shareholder returns.

Debt Profile: Debt-to-equity of 0.49 — moderate leverage, manageable but worth monitoring given earnings volatility.

Cash Flow: Not explicitly stated, but recent losses suggest pressure on operating cash flows. Historical performance has been cyclical due to sugar price fluctuations.

💰 Valuation Indicators

Metric Value Insight

P/E Ratio 2,569 Skewed due to negative earnings; not meaningful

P/B Ratio ~7.62 High premium over book value

PEG Ratio Not available Lack of reliable growth data

Dividend Yield 0.37% Minimal payout, not a strong income play

Valuation metrics are distorted due to negative EPS. The stock appears expensive relative to its fundamentals.

🧪 Business Model & Competitive Advantage

EID Parry (India) Ltd. is a legacy player in the sugar and nutraceuticals space. Key business segments include

Sugar: White, refined, pharma-grade, and brown sugar

Nutraceuticals: Spirulina, chlorella, and organic health supplements

Strengths

Deep industry roots and strong distribution in South India

Diversification into ethanol and packaged foods to reduce cyclicality

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Strategic investments in green energy and sustainability

However, recent earnings have been volatile, and profitability has suffered due to commodity price swings and margin compression.

📈 Technical & Sentiment Indicators

RSI: 44.4 – Near oversold zone, suggesting potential rebound.

MACD: –16.6 – Bearish crossover, indicating short-term weakness.

Volume Dip – Below weekly average, signaling reduced interest.

DMA 50 & 200: Price is hovering near DMA 50 and above DMA 200 — technically neutral.

Analyst sentiment remains cautiously optimistic. Price targets range from ₹1,230 to ₹1,409, implying 13–31% upside

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💡 Investment Strategy

🔽 Entry Zone

Ideal Buy Range: ₹1,020–₹1,070, near recent support and below DMA 50.

Current Price ₹1,090: Slightly above ideal entry — consider partial accumulation if bullish on ethanol and packaged food diversification.

🕰️ Long-Term Holding

Hold with Caution or Accumulate on Dips: Diversification efforts and historical resilience make EID Parry a potential turnaround candidate, but weak ROE/ROCE and earnings volatility warrant disciplined entry.

Watch Margin Recovery & Institutional Sentiment: FII and DII inflows are modest, but improving fundamentals could attract more interest.

You can explore Trendlyne’s live share analysis and valuation dashboard or review Finosauras’s price targets and technical forecast for deeper insights. Let me know if you'd like a peer comparison with Triveni or Balrampur Chini.

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simplywall.st

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www.finosauras.com

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