Paras Petrofils Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹2.02₹0.00 (0.00%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 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 Paras Petrofils Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Paras Petrofils Limited does not have significant operations. Previously, it was engaged in manufacturing nylon and polyester yarns, trading of fabrics and commission activities. The company was incorporated in 1991 and is based in Surat, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees2

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of -1.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE-1.8%

ROE-1.8%

Peer median ROE25.9%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of -1.8% is below 10% — capital is not working hard
✗ ROCE has fallen by 3.2 points — returns are eroding
✗ The business is lossmaking at the net level

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

25/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

3.91x

EV/EBITDA

55.0x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Cash generation is improving
Free cash flow is up 832% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 1.4% to -1.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 1.4% to -1.8% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -441.1x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -43.0x to -441.1x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 1.4% to -1.8%. 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.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Interest cover stays above 3x✗ -441.1x
How much operating profit can fall before interest stops being comfortably covered.
2Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ -1.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 9 checks passed

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

Price history

Quick Metrics

1 good · 5 neutral · 5 weak

Market Cap

₹68 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

3.91x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-0.02

Loss-making

Negative earnings per share — the business is losing money

ROE

-1.8%

Weak

Weak capital efficiency

ROCE

-1.8%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

-552.3%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹2.02

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

278.62

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-1.63

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2.1 / 2.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+14.3%
PAT (Net Profit)	₹0 Cr	-₹0 Cr	₹0 Cr	-₹0 Cr	—
EPS	₹0.01	₹-0.01	—	₹-0.01	—
ROE	1.4%	-1.8%	0.4%	-1.8%	—
ROCE	1.4%	-1.8%	0.5%	-1.8%	—
Free Cash Flow	₹0 Cr	-₹0 Cr	₹0 Cr	₹0 Cr	+110.5%

🟢 EBITDA has grown at 14.3% a year over 3 years.

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.01 to ₹-0.01.

🔴 ROE has fallen from 1.4% to -1.8% over 3 years (-3.2 pts).

🔴 ROCE has fallen from 1.4% to -1.8% over 3 years (-3.2 pts).

🟢 Free Cash Flow has grown at 110.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹20 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

46.6%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 mixed4 general

Paras Petrofils vs Nifty 50: 1Y Return -9.01% vs -11.71%

Univest, 09 Oct

Paras Petrofils AGM passes resolutions amid compliance delays

scanx.trade, 06 Oct

Paras Petrofils Share Price Target 2026: Bull Case Rs 5.00, Bear

Univest, 02 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Paras Petrofils Limited Clarifies Recent Share Price Movement to BSE

scanx.trade, 03 Feb

Paras Petrofils Ltd. (PARASPETRO) Share Price Surges 10% Today

Univest, 27 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Paras Petrofils schedules 35th AGM for September 29, 2026

scanx.trade, 07 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🔴Business QualityWeak4.1/20

🟡Financial HealthAdequate12.7/20

🟡GrowthModest10/20

🔴ProfitabilityWeak3.8/15

🔴ValuationDemanding5.1/15

🔴RiskHigh4.4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✗Interest cover stays above 3x-441.1x
✓Free cash flow remains positive₹0 Cr
✗ROCE stays above 8%-1.8%