EIDPARRY - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 1.7
| Stock Code | EIDPARRY | Market Cap | 16,131 Cr. | Current Price | 907 ₹ | High / Low | 1,247 ₹ |
| Stock P/E | 805 | Book Value | 127 ₹ | Dividend Yield | 0.00 % | ROCE | 1.66 % |
| ROE | -0.79 % | Face Value | 1.00 ₹ | DMA 50 | 969 ₹ | DMA 200 | 988 ₹ |
| Chg in FII Hold | -0.16 % | Chg in DII Hold | 0.71 % | PAT Qtr | 40.7 Cr. | PAT Prev Qtr | -27.9 Cr. |
| RSI | 42.6 | MACD | -27.1 | Volume | 1,75,605 | Avg Vol 1Wk | 1,45,086 |
| Low price | 639 ₹ | High price | 1,247 ₹ | Debt to equity | 0.43 | 52w Index | 44.1 % |
| Qtr Profit Var | 44.2 % | EPS | -38.9 ₹ | Industry PE | 21.5 |
📊 Analysis: EID Parry’s fundamentals are weak for long-term investment. The stock trades at an extremely high P/E (805 vs industry 21.5), with negative ROE (-0.79%) and very low ROCE (1.66%), showing poor capital efficiency. EPS is negative (-38.9 ₹), and dividend yield is 0%, limiting compounding potential. Debt-to-equity at 0.43 is moderate, but profitability remains inconsistent. Technicals (RSI 42.6, MACD negative, price below DMA 50 & 200) suggest bearish momentum.
💰 Ideal Entry Zone: 640 ₹ – 720 ₹ (closer to 52-week low, offering margin of safety and better valuation comfort).
📈 Exit / Holding Strategy: If already holding, consider exiting near 1,000–1,050 ₹ (close to DMA resistance). Long-term holding is not advisable unless ROE and ROCE improve significantly. Current metrics suggest weak growth potential, so redeployment into stronger peers may be more beneficial.
Positive
- Quarterly profit turnaround: PAT improved to 40.7 Cr. from -27.9 Cr.
- Debt-to-equity ratio at 0.43, showing manageable leverage.
- DII holdings increased (+0.71%), indicating some domestic institutional support.
Limitation
- Extremely high P/E ratio (805) compared to industry average (21.5).
- Negative ROE (-0.79%) and very low ROCE (1.66%).
- No dividend yield, reducing investor appeal for long-term compounding.
- Negative EPS (-38.9 ₹), reflecting weak earnings.
Company Negative News
- Weak profitability and capital efficiency metrics.
- Decline in FII holdings (-0.16%), showing reduced foreign investor confidence.
Company Positive News
- Quarterly profit recovery with 44.2% variation improvement.
- Trading volume above 1-week average, showing short-term interest.
Industry
- Industry PE at 21.5, far below company’s valuation, highlighting overvaluation.
- Sector growth depends on cyclical sugar and agro-commodity demand, which is volatile.
Conclusion
⚠️ EID Parry is not a strong candidate for long-term investment due to poor ROE, ROCE, negative EPS, and unsustainable valuation. Entry only makes sense near deep value zones (640–720 ₹) for short-term recovery trades. Long-term investors should avoid or exit on rallies unless fundamentals improve.
Selva, since you expect workflow-ready reports, would you like me to also prepare a peer benchmarking overlay comparing EID Parry with sector peers (Balrampur Chini, Dhampur, Dwarikesh) to highlight relative strength and margin-of-safety positioning? This would integrate directly into your basket and sector rotation logic.