EIDPARRY - Investment Analysis: Buy Signal or Bull Trap?
Last Updated Time : 20 Dec 25, 07:05 am
Back to Investment ListInvestment Rating: 1.6
| Stock Code | EIDPARRY | Market Cap | 18,054 Cr. | Current Price | 1,015 ₹ | High / Low | 1,247 ₹ |
| Stock P/E | 901 | Book Value | 127 ₹ | Dividend Yield | 0.00 % | ROCE | 1.66 % |
| ROE | -0.79 % | Face Value | 1.00 ₹ | DMA 50 | 1,040 ₹ | DMA 200 | 1,000 ₹ |
| Chg in FII Hold | 0.11 % | Chg in DII Hold | 1.11 % | PAT Qtr | 40.7 Cr. | PAT Prev Qtr | -27.9 Cr. |
| RSI | 48.4 | MACD | -3.43 | Volume | 1,15,469 | Avg Vol 1Wk | 79,499 |
| Low price | 639 ₹ | High price | 1,247 ₹ | Debt to equity | 0.43 | 52w Index | 61.9 % |
| Qtr Profit Var | 44.2 % | EPS | -38.9 ₹ | Industry PE | 23.8 |
📊 Analysis: EIDPARRY shows weak fundamentals for long-term compounding. ROE at -0.79% and ROCE at 1.66% are far below ideal thresholds, reflecting poor capital efficiency. Valuation is extremely stretched with P/E at 901 compared to industry average of 23.8, making the stock unattractive. EPS at -38.9 ₹ indicates negative earnings, while dividend yield is 0%, offering no shareholder returns. Debt-to-equity at 0.43 is moderate but adds leverage risk. Technicals show RSI at 48.4 (neutral), MACD negative (-3.43), and price hovering near both 50 DMA (1,040 ₹) and 200 DMA (1,000 ₹), suggesting consolidation. Quarterly PAT improved to 40.7 Cr. from -27.9 Cr., but overall profitability remains inconsistent.
💡 Entry Zone: Safer entry would be in the 650–750 ₹ range, aligning with valuation comfort and support levels. Current price (1,015 ₹) is well above fair entry zone, making risk-reward unattractive at present.
📈 Exit Strategy: If already holding, consider tactical exit near 1,100–1,150 ₹ resistance. Long-term holding is not favorable unless ROE improves above 12–15% and earnings stabilize. Suggested holding period: short-term (6–12 months) rather than multi-year compounding.
Positive
- 📌 Debt-to-equity at 0.43 indicates manageable leverage
- 📌 Quarterly PAT rebound from -27.9 Cr. to 40.7 Cr.
- 📌 Institutional interest: FII (+0.11%) and DII (+1.11%) holdings increased
Limitation
- ⚠️ Extremely high valuation: P/E 901 vs industry 23.8
- ⚠️ Weak ROE (-0.79%) and ROCE (1.66%) below compounding thresholds
- ⚠️ EPS at -38.9 ₹ reflects negative earnings
- ⚠️ Dividend yield at 0% offers no shareholder returns
Company Negative News
- ❌ Persistent weak profitability despite recent PAT rebound
- ❌ EPS remains negative, raising sustainability concerns
Company Positive News
- ✅ PAT turned positive in the latest quarter
- ✅ Institutional confidence improved with FII/DII additions
Industry
- 🏦 Industry PE at 23.8, sector moderately valued
- 🏦 Sugar and agribusiness sector faces cyclical demand and margin pressures
Conclusion
🔎 EIDPARRY is not a strong candidate for long-term investment due to weak ROE/ROCE, negative EPS, and stretched valuations. Entry should be avoided at current levels; wait for correction near 650–750 ₹. Existing holders may exit near resistance zones or hold short-term only. Long-term compounding potential is limited unless profitability metrics improve significantly.
Would you like me to extend this into a peer benchmarking overlay comparing EIDPARRY against sugar sector peers like Balrampur Chini, Dhampur Sugar, and Triveni Engineering to highlight relative valuation comfort zones?
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