Parker Agrochem Exports Ltd.

Industrials — Rental & Leasing Services · BSE

₹16.72−₹0.88 (−5.00%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Parker Agrochem Exports Ltd. — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Parker Agrochem Exports Ltd., a liquid storage company, engages in storage tank farm rental business in India. The company develops petroleum and edible oil storage tanks for directly loading and unloading ships.

IndustryRental & Leasing Services

SectorIndustrials

Employees20

Annual revenue₹5 Cr

How does it make money?

Turns over ₹5 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 20 employees supports ₹26.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin25.4%

Net margin16.2%

Revenue / employee₹26.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 22.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE22.8%

ROE18.2%

Peer median ROE15.2%

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 +23% while net margin moved +7% 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+23%

Margin effect+7%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.41 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

79/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

6.9x

3Y Median

8.1x

40 monthly readings · mean 9.9x · range 6.4x–19.3x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 15% below its 3y median of 8.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 92% below the peer median of 88.8x.

vs. its own history

Fair

8.1x median over 40 months · -15%

vs. sector peers

Cheap

88.8x median of 3 peers · -92%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

6.9x

P/B

1.69x

EV/EBITDA

5.8x

PEG

0.71

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 18.2% to 25.4% over 3 years.
Debt is being paid down
Total debt is down 50% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 22.8% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 21.6% to 18.2% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 6.05x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 18.2% to 25.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 50% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 92% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 6.05x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 7.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 21.6% to 18.2%. 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.

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

1EBITDA margin holds above 23%✓ 25.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 7.3% CAGR
Latest reported year was 68.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 22.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹8 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.9x

Cheap

Cheap against the generic band

P/B Ratio

1.69x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.44

Profitable

Profitable on a per-share basis

ROE

18.2%

Strong

Strong capital efficiency

ROCE

22.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

6.05x

High

High leverage

Revenue Growth (YoY)

68.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

525.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹16.72

Operating Margin

21.3%

Good

Healthy core-business profitability

Net Margin

19.5%

Good

Strong bottom-line conversion

Current Ratio

2.75

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

19.5 / 18.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

16.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹5 Cr	₹66 Cr	₹5 Cr	+7.3%
EBITDA	₹1 Cr	₹1 Cr	₹0 Cr	₹1 Cr	+19.8%
EBITDA Margin	18.2%	23.4%	0.2%	25.4%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	-₹0 Cr	₹1 Cr	+9.7%
EPS	₹1.37	₹2.23	₹-0.42	₹1.8	+9.5%
ROE	21.6%	26.1%	-5.2%	18.2%	—
ROCE	21.8%	24.2%	-1.7%	22.8%	—
Total Debt	₹1 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-20.8%
Free Cash Flow	-₹1 Cr	-₹0 Cr	₹0 Cr	₹1 Cr	—

🟢 Revenue has grown at 7.3% a year over 3 years.

🟢 EBITDA has grown at 19.8% a year over 3 years.

🟢 EBITDA Margin has risen from 18.2% to 25.4% over 3 years (+7.2 pts).

🟢 PAT (Net Profit) has grown at 9.7% a year over 3 years.

🟢 EPS has grown at 9.5% a year over 3 years.

🔴 ROE has fallen from 21.6% to 18.2% over 3 years (-3.4 pts).

🟡 ROCE has held roughly flat at 22.8% over 3 years.

🟢 Total Debt has shrunk at 20.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6 Cr

Total Liabilities

₹1 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.0%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 mixed4 general

Sawaca Enterprises (BSE:531893) - Stock Analysis

Simply Wall Street, 16 Oct

Parker Agrochem Exports shareholders approve FY26 financials at 33rd AGM

scanx.trade, 30 Sept

Parker Agrochem Exports Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Parker Agrochem promoter group acquires 20,370 shares via open market

scanx.trade, 28 Sept

Vishwaraj Sugar Industries reports standalone net loss of Rs 25.84 crore in the June 2026 quarter

Business Standard, 14 AugResults

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

Vivanza Biosciences Ltd. Share Price Surges 8.84% Today

Univest, 28 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.

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

🟢Business QualityStrong16.7/20

🟢Financial HealthStrong14.5/20

🟡GrowthModest10.4/20

🟢ProfitabilityStrong10.2/15

🟢ValuationAttractive10.4/15

🔴RiskHigh3.9/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 23%25.4%
✓Revenue growth stays above 5% a year7.3% CAGR
✓Free cash flow remains positive₹1 Cr
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 20%22.8%