Parle Industries Limited

Real Estate — Real Estate Services · BSE

₹5.40−₹0.06 (−1.10%)

DalalBaazaar Score

35 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Parle Industries Limited engages in the infrastructure and real estate businesses. The company operates through two segments: Infrastructure and Real Estate, and Paper Waste Recycling. It also offers software products and software development services.

IndustryReal Estate Services

SectorReal Estate

Employees9

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹-14 reaches shareholders as profit, with ₹-7 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹7.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹7.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY 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?Little sign of one

Returns on capital of 0.1% 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.

Peer median ROE10.3%

DalalBaazaar Score

35/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

33/ 100

Weak

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

Valuation

36/ 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

EV/EBITDA

—

PEG

—

Red Flags

7 items require attention · 4 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 2.81x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.6x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 5.7x to 0.6x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 249% over 3 years — each existing share owns a smaller slice of the company.
🟡Low reported insider holdingOwnership
Reported insider holding is 2.2%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.81x. Interest is payable whether or not the business has a good year.
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
4 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

1EBITDA margin holds above -9%✓ -6.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹73 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ 0.6x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ 0.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 2 neutral · 7 weak

Market Cap

₹26 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

0.12x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-2.43

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.1%

Weak

Weak capital efficiency

ROCE

0.1%

Weak

Low return on total capital employed

Debt/Equity

2.81x

High

High leverage

Revenue Growth (YoY)

2400.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-119.4%

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

-₹73 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.8%

Weak

Thin margins leave little room for error

Net Margin

-100.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

6.81

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

15%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

5.6 / 6.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹5 Cr	₹1 Cr	—
EBITDA	₹0 Cr	₹0 Cr	₹1 Cr	-₹0 Cr	—
EBITDA Margin	—	—	18.6%	-6.8%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	-₹0 Cr	—
EPS	₹0.03	₹0.02	₹0.17	₹-0.03	—
ROE	0.2%	0.1%	0.3%	-0.1%	—
ROCE	1.1%	0.5%	0.5%	0.1%	—
Total Debt	—	₹1 Cr	₹1 Cr	₹3 Cr	—
Free Cash Flow	₹0 Cr	-₹1 Cr	-₹9 Cr	-₹73 Cr	—

🔴 EBITDA has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EBITDA Margin has fallen from 18.6% to -6.8% over 3 years (-25.4 pts).

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

🔴 EPS has turned negative, from ₹0.03 to ₹-0.03.

🟡 ROE has held roughly flat at -0.1% over 3 years.

🔴 ROCE has fallen from 1.1% to 0.1% over 3 years (-1.0 pts).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹73 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹136 Cr

Total Liabilities

₹23 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹73 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

2.2%

Corporate Actions

Ex-Dividend Date

26 Dec 2007

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

2 mixed4 general

Parle Industries shares fall for first time after 60% 'Melody'-led rally

Moneycontrol.com, 03 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Parle Industries hits upper circuit amid ‘Melody’ confusion

The Economic Times, 21 May

Parle Industries (BSE:532911) - Stock Analysis

Simply Wall Street, 28 Apr

Parle Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Parle Industries hits 5% upper circuit again as investors chase wrong Parle stock

India Today, 22 May

Case of mistaken identity? Parle Industries’ shares rise 5% after ‘Melody moment’

The Times of India, 20 MayPrice 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.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.
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

MiddlingGrowth · Valuation

WeakBusiness Quality · Financial Health · Profitability · Risk

Points for each in the Score ↑

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. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑