E.I.D.- Parry (India) Limited

Basic Materials — Agricultural Inputs · NSE

₹693.20−₹8.75 (−1.25%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

Driven by negative free cash flow, small-cap size, which brings sharper price swings, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of E.I.D.- Parry (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

E.I.D.- Parry (India) Limited, together with its subsidiaries, engages in the manufacture and sale of sugar, ethanol, cogeneration, nutraceuticals, and consumer products in India, North America, Europe, and internationally.

IndustryAgricultural Inputs

SectorBasic Materials

Employees2,100

Annual revenue₹27,240 Cr

How does it make money?

Turns over ₹27,240 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 2,100 employees supports ₹12.97 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin12.9%

Net margin2.1%

Revenue / employee₹12.97 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Some evidence

ROCE of 15.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.7%

ROE6.5%

Peer median ROE22.3%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 6.6% and earnings to grow about 41.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+6.6%

Est. earnings growth+41.6%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +32% while net margin moved -54% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+32%

Margin effect-54%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.5% is weak
✗ ROE has fallen by 9.1 points over the period

Quality vs. Valuation

Company Quality

46/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

57/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

26.6x

3Y Median

16.2x

40 monthly readings · mean 16.4x · range 8.7x–25.1x

Sector Median

28.7x

median of 4 sector peers

⚠️Current valuation is approximately 64% above its 3y median of 16.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 28.7x.

vs. its own history

Expensive

16.2x median over 40 months · +64%

vs. sector peers

Fair

28.7x median of 4 peers · -7%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

26.6x

P/B

1.40x

EV/EBITDA

5.6x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.24x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention7

Margins are compressing
EBITDA margin has slipped from 15.3% to 12.9% over 3 years.
Debt is rising
Total debt is up 428% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 15.6% to 6.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.5% to 15.7% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 191% against revenue growth of 32% — customers are taking longer to pay.
Valuation above its historical average
At 26.6x the stock trades 64% above its own median of 16.2x.

Red Flags

5 items require attention · 2 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 428% over 3 years, from ₹1,618 Cr to ₹8,550 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 191% against revenue up 32% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹76 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 40% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.4 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 15.3% to 12.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 191% against revenue up 32%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 64% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 15.6% to 6.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 11%✓ 12.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹76 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 7% a year✓ 9.6% CAGR
Latest reported year was 3.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 13%✓ 15.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹12,336 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.6x

Fair

Fairly valued against the generic band

P/B Ratio

1.40x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹26.04

Profitable

Profitable on a per-share basis

ROE

6.5%

Weak

Weak capital efficiency

ROCE

15.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.24x

Low

Conservative leverage

Revenue Growth (YoY)

3.4%

Modest

Modest growth

Profit Growth (YoY)

-42.4%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹76 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹693.2

P/E (Forward)

9.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.6%

Average

Average margins

Net Margin

1.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.42

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.05

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

695.3 / 744.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20,681 Cr	₹21,195 Cr	₹23,419 Cr	₹27,240 Cr	+9.6%
EBITDA	₹3,157 Cr	₹2,808 Cr	₹2,834 Cr	₹3,501 Cr	+3.5%
EBITDA Margin	15.3%	13.2%	12.1%	12.9%	—
PAT (Net Profit)	₹947 Cr	₹900 Cr	₹878 Cr	₹570 Cr	-15.6%
EPS	₹53.25	₹50.61	₹49.33	₹31.91	-15.7%
ROE	15.6%	12.7%	11.1%	6.5%	—
ROCE	27.5%	20.0%	20.0%	15.7%	—
Total Debt	₹1,618 Cr	₹1,740 Cr	₹5,766 Cr	₹8,550 Cr	+74.2%
Free Cash Flow	-₹501 Cr	₹999 Cr	₹890 Cr	-₹76 Cr	—

🟢 Revenue has grown at 9.6% a year over 3 years.

🟢 EBITDA has grown at 3.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 15.3% to 12.9% over 3 years (-2.4 pts).

🔴 PAT (Net Profit) has shrunk at 15.6% a year over 3 years.

🔴 EPS has shrunk at 15.7% a year over 3 years.

🔴 ROE has fallen from 15.6% to 6.5% over 3 years (-9.1 pts).

🔴 ROCE has fallen from 27.5% to 15.7% over 3 years (-11.9 pts).

🔴 Total Debt has grown at 74.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹29,254 Cr

Total Liabilities

₹14,334 Cr

Total Debt

₹8,550 Cr

Cash & Equivalents

₹1,222 Cr

Operating Cash Flow

₹1,542 Cr

Capex

-₹1,617 Cr

Shareholding (proxy)

Institutional Holding

26.0%

Insider Holding

46.9%

Corporate Actions

Ex-Dividend Date

21 Nov 2023

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,052

+51.8% vs CMP

Target Range

₹1,052 – ₹1,052

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive1 mixed4 general

Volumes spurt at EID Parry (India) Ltd counter

Business Standard, 10 Aug

Technical Call: EID Parry India - BUY

BusinessLine, 09 Aug

E.I.D.- Parry (India) (NSEI:EIDPARRY) Stock Price

Simply Wall Street, 14 Aug

EID Parry sugar revenue rises 18% in Q1FY27 on higher volumes, CPG turnover falls by design

ChiniMandi, 19 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

EID Parry closes trading window from July 1 until Q1FY27 results

scanx.trade, 23 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

SBI Mutual Fund raises stake in sugar stock EID Parry to 9.13% | Check stock performance

Livemint, 10 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate10.3/20

🟡Financial HealthAdequate12/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair7.5/15

🟡RiskModerate5.8/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 11%12.9%
✗Debt / EBITDA stays below 2x2.4x
✗Free cash flow remains positive-₹76 Cr
✓Revenue growth stays above 7% a year9.6% CAGR
✓ROCE stays above 13%15.7%