EIDPARRY - Investment Analysis

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

Investment Rating: 3.2

🌾 Fundamental Analysis: EID Parry (EIDPARRY)

EID Parry is a leading player in the sugar and nutraceuticals segment, with a diversified agro-based business. While the stock has seen a strong price rally, its fundamentals suggest caution due to declining profitability and stretched valuation.

Metric Value Implication

P/E Ratio 30.1 Overvalued vs. industry PE of 22.2

PEG Ratio -3.85 Negative — indicates earnings contraction or volatility

ROCE / ROE 16.6% / 9.54% Moderate — not exceptional for long-term compounding

Dividend Yield 0.33% Low — not attractive for income investors

Debt-to-Equity 0.34 Reasonable — manageable leverage

EPS ₹49.4 Decent earnings base

Qtr Profit Var -31.3% Sharp decline — signals earnings pressure

FII/DII Holding Change +0.49% / +0.63% Mild accumulation — neutral sentiment

📉 Technical Analysis

Current Price: ₹1,209

DMA 50 / DMA 200: ₹1,061 / ₹899 → Strong bullish trend

RSI: 75.6 → Overbought zone — high risk of short-term correction

MACD: +43.2 → Bullish momentum, but possibly peaking

Volume: Significantly above average — speculative interest near highs

💰 Ideal Entry Price Zone

₹950–₹1,050

This range aligns with 50-DMA and offers a safer entry with valuation comfort

Avoid fresh entry above ₹1,200 unless earnings stabilize and PEG improves

📈 Long-Term Investment Outlook

Strengths

Strong presence in sugar and ethanol — benefits from policy tailwinds

Decent ROCE — operational efficiency is acceptable

Rising volumes and institutional interest — short-term momentum

Risks

PEG < 0 — earnings volatility or contraction

ROE < 10% — weak return on equity for long-term compounding

RSI > 75 — overbought; correction likely

Profit decline — recent quarter shows earnings pressure

EID Parry is a cyclical agro play with short-term momentum but limited long-term compounding potential unless earnings stabilize. Best suited for tactical investors rather than long-term holders.

🏁 Exit Strategy / Holding Period

If you already hold EIDPARRY

Holding Period: 1–2 years — monitor earnings and sector tailwinds

Exit Strategy

Consider booking profits near ₹1,220–₹1,250 (recent high)

Reassess if ROCE drops below 12% or profit continues to decline

Hold only if sugar/ethanol policy support drives earnings recovery

Would you like a comparison with Balrampur Chini or Dwarikesh Sugar to explore better valuation or growth dynamics in the sugar sector?

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