EIDPARRY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 1.6
| Stock Code | EIDPARRY | Market Cap | 13,900 Cr. | Current Price | 781 ₹ | High / Low | 1,247 ₹ |
| Stock P/E | 396 | Book Value | 127 ₹ | Dividend Yield | 0.00 % | ROCE | 1.66 % |
| ROE | -0.79 % | Face Value | 1.00 ₹ | DMA 50 | 834 ₹ | DMA 200 | 911 ₹ |
| Chg in FII Hold | -0.41 % | Chg in DII Hold | 0.47 % | PAT Qtr | -54.4 Cr. | PAT Prev Qtr | 40.7 Cr. |
| RSI | 35.3 | MACD | -15.2 | Volume | 1,31,850 | Avg Vol 1Wk | 1,79,159 |
| Low price | 751 ₹ | High price | 1,247 ₹ | Debt to equity | 0.43 | 52w Index | 6.05 % |
| Qtr Profit Var | 21.7 % | EPS | -33.7 ₹ | Industry PE | 23.6 |
📊 Financials: EID Parry’s fundamentals are weak. The latest quarter shows a loss of -54.4 Cr compared to a profit of 40.7 Cr earlier. ROCE is only 1.66% and ROE is negative (-0.79%), indicating poor efficiency. EPS is also negative (-33.7 ₹). Debt-to-equity at 0.43 is moderate, but cash flows are strained given the losses.
💰 Valuation: The stock trades at a P/E of 396, far above the industry average of 23.6, making it significantly overvalued. With a book value of 127 ₹ and current price of 781 ₹, the P/B ratio is steep. PEG ratio is unavailable, but intrinsic value appears much lower than the current market price.
🏭 Business Model & Health: EID Parry operates in sugar and nutraceuticals. While it has a strong legacy and diversified presence, cyclical industry pressures and volatile earnings weaken its competitive advantage. Overall health is fragile due to poor profitability and weak return metrics.
📉 Entry Zone: RSI at 35.3 suggests near oversold levels, with support around 751 ₹. A cautious entry could be considered only if the stock corrects further toward intrinsic value. Long-term holding is risky unless profitability improves and valuations normalize.
Positive
- 📈 [Industry Presence](ca://s?q=EID_Parry_industry_presence): Strong legacy in sugar and allied businesses.
- 🌱 [Diversification](ca://s?q=EID_Parry_diversification): Presence in nutraceuticals and bio-products.
- 🏦 [Debt Levels](ca://s?q=EID_Parry_debt_levels): Moderate debt-to-equity ratio of 0.43.
Limitation
- 📉 [Profitability](ca://s?q=EID_Parry_profitability): Negative EPS and ROE.
- 💸 [Valuation](ca://s?q=EID_Parry_valuation): Extremely high P/E compared to peers.
- ⚠️ [Volatility](ca://s?q=EID_Parry_volatility): Earnings highly cyclical and inconsistent.
Company Negative News
- 📊 [Quarterly Loss](ca://s?q=EID_Parry_quarterly_loss): Reported -54.4 Cr PAT in the latest quarter.
- 📉 [FII Outflow](ca://s?q=EID_Parry_FII_outflow): Foreign investors reduced holdings by -0.41%.
Company Positive News
- 📈 [DII Support](ca://s?q=EID_Parry_DII_support): Domestic institutions increased holdings by 0.47%.
- 🔬 [Nutraceutical Growth](ca://s?q=EID_Parry_nutraceutical_growth): Expanding presence in health supplements.
Industry
- 🌾 [Sugar Industry](ca://s?q=Indian_sugar_industry): Highly regulated, cyclical, and dependent on government policies.
- 📉 [Industry PE](ca://s?q=Sugar_industry_PE): Sector average P/E is 23.6, far below EID Parry’s valuation.
Conclusion
⚠️ EID Parry currently reflects weak fundamentals, negative profitability, and inflated valuations. While the company has industry presence and diversification, its financial health is fragile. Entry should be cautious, ideally closer to intrinsic value levels. Long-term holding is not advisable unless profitability improves and valuations normalize.