Parin Enterprises Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹695.90+₹14.60 (+2.14%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, 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, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Parin Enterprises Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Parin Enterprises Limited engages in the manufacture, supply, and trade of furniture and lifestyle products in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Annual revenue₹248 Cr

How does it make money?

Turns over ₹248 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +205% while net margin moved -33% 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+205%

Margin effect-33%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 126.5x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 121.1x
✗ P/B of 10.27x is a steep premium to book

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

32/ 100

Expensive

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

126.5x

3Y Median

121.1x

40 monthly readings · mean 113.7x · range 23.3x–193.8x

Sector Median

68.5x

median of 3 sector peers

🟡Currently trading close to its 3y median of 121.1x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 85% above the peer median of 68.5x.

vs. its own history

Fair

121.1x median over 40 months · +4%

vs. sector peers

Expensive

68.5x median of 3 peers · +85%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

39.3x

PEG

4.70

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 11.9% to 16.2%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 98% over 3 years, from ₹46 Cr to ₹91 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹2 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 2.2 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 11.1% to 8.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 85% above the peer median. That premium needs a reason that persists, or it closes.
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.

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

1Revenue growth stays above 34% a year✓ 45.0% CAGR
Latest reported year was 5.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.5x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 11 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 5 neutral · 4 weak

Market Cap

₹774 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

126.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

10.27x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹5.5

Profitable

Profitable on a per-share basis

ROE

10.4%

Moderate

Moderate capital efficiency

ROCE

16.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.18x

Moderate

Moderate leverage

Revenue Growth (YoY)

5.6%

Modest

Modest growth

Profit Growth (YoY)

-28.0%

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

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

5.4%

Average

Average asset productivity

Operating Margin

6.5%

Average

Average margins

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.76

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.52

Defensive

Steadier than the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

702.9 / 706.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

26.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹81 Cr	₹82 Cr	₹168 Cr	₹248 Cr	+45.0%
EBITDA	₹9 Cr	₹8 Cr	₹19 Cr	₹22 Cr	+34.5%
EBITDA Margin	11.1%	10.1%	11.3%	8.9%	—
PAT (Net Profit)	₹3 Cr	₹2 Cr	₹6 Cr	₹6 Cr	+26.9%
EPS	₹2.77	₹2.04	₹5.66	—	—
ROE	5.5%	3.9%	9.8%	8.4%	—
ROCE	11.9%	10.0%	15.1%	16.2%	—
Total Debt	₹46 Cr	₹45 Cr	₹95 Cr	₹91 Cr	+25.6%
Free Cash Flow	-₹1 Cr	₹1 Cr	-₹36 Cr	-₹2 Cr	—

🟢 Revenue has grown at 45.0% a year over 3 years.

🟢 EBITDA has grown at 34.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.1% to 8.9% over 3 years (-2.2 pts).

🟢 PAT (Net Profit) has grown at 26.9% a year over 3 years.

🟢 ROE has risen from 5.5% to 8.4% over 3 years (+2.8 pts).

🟢 ROCE has risen from 11.9% to 16.2% over 3 years (+4.3 pts).

🔴 Total Debt has grown at 25.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹195 Cr

Total Liabilities

₹118 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹4 Cr

Corporate Actions

Ex-Dividend Date

28 Mar 2025

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

6 general

Parin Enterprises approves migration to NSE main board

scanx.trade, 25 May

Parin Enterprises' exit from Nifty SME Emerge due to its migration takes effect from September 25

Traders Union, 23 Sept

PARIN ENTERPRISES LIMITED Share Price

Upstox, 21 Oct

Rexpro Enterprises Limited (NSE:REXPRO) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?

Simply Wall Street, 18 Nov

Parin Enterprises wins Rs 78.27 lakh order from AAI for Kolkata Airport furniture

scanx.trade, 27 Aug

Stock Alert: Panacea Biotec, Advance Agrolife, Zaggle Prepaid Ocean Services, Emerald Leisures, L&T

Business Standard, 15 Apr

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Growth

WeakProfitability · Valuation · Risk

Points for each in the Score ↑

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. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑