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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Par Drugs & Chemicals Ltd

About the Company - Par Drugs & Chemicals Ltd

Par Drugs & Chemicals Ltd. is a Public Limited Listed company incorporated on 26/02/1999 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24117GJ1999PLC035512 and registration number is 035512. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 75.07 Cr. and Equity Capital is Rs. 12.30 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Pharmaceuticals815, Nilamber Triumph, Gotri Vasna Road, Vadodra Gujarat 390007investors@pardrugs.com
http://www.pardrugs.com
Management
NamePosition Held
Mr. Falgun Vallabhbhai SavaniChairman & Managing Director
Mr. Jignesh Vallabhbhai SavaniExecutive Director & CEO
Mr. Ghanshayambhai Bhagvanbhai SavaniWhole Time Director
Mrs. Nayna Jignesh SavaniNon Executive Director
Mr. Pravin Manjibhai BhayaniIndependent Director
Mrs. Kajal Chintanbhai VaghaniIndependent Director
Mr. Krishna Mitulbhai ShahIndependent Director
Mrs. Bintal Bhaveshkumar ShahIndependent Director

Par Drugs & Chemicals Ltd. Share Price Update

Share PriceValue
Today₹209.05
Previous Day₹211.40

Basic Stock Data of Par Drugs & Chemicals Ltd

Market Cap 260 Cr.
Current Price 211
High / Low248/128
Stock P/E18.2
Book Value 63.9
Dividend Yield0.00 %
ROCE23.0 %
ROE17.1 %
Face Value 10.0

Data Source: screener.in

Competitors of Par Drugs & Chemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bliss GVS Pharma Ltd 1,385 Cr. 132150/69.215.8 88.80.38 %11.8 %8.30 % 1.00
TTK Healthcare Ltd 2,096 Cr. 1,4841,584/82832.2 6880.69 %10.1 %99.7 % 10.0
Sun Pharmaceuticals Industries Ltd 3,72,869 Cr. 1,5541,568/92239.8 2490.74 %16.4 %16.6 % 1.00
Vaishali Pharma Ltd 168 Cr. 159204/11528.8 41.80.00 %21.7 %19.7 % 10.0
Torrent Pharmaceuticals Ltd 88,309 Cr. 2,6092,700/1,44661.7 1980.85 %19.8 %20.0 % 5.00
Industry Average92,965.40 Cr1,187.6035.66253.120.53%15.96%32.86%5.40

Par Drugs & Chemicals Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales17.1716.2716.2116.4819.5916.9222.0823.5124.8222.9324.4922.9325.89
Expenses12.0712.3711.9012.3615.5513.3617.5619.8118.9219.7019.1018.7918.53
Operating Profit5.103.904.314.124.043.564.523.705.903.235.394.147.36
OPM %29.70%23.97%26.59%25.00%20.62%21.04%20.47%15.74%23.77%14.09%22.01%18.05%28.43%
Other Income0.030.030.100.040.030.050.070.150.020.040.030.010.05
Interest0.280.050.260.030.230.100.090.050.030.030.030.020.03
Depreciation0.740.620.730.800.830.770.870.730.910.740.850.830.85
Profit before tax4.113.263.423.333.012.743.633.074.982.504.543.306.53
Tax %14.60%36.20%28.95%26.13%26.25%22.63%33.06%25.08%25.10%25.20%24.01%25.15%25.27%
Net Profit3.512.082.432.462.222.122.422.293.731.873.452.474.89
EPS in Rs2.851.691.982.001.801.721.971.863.031.522.802.013.97

Par Drugs & Chemicals Ltd Quarterly Chart

Par Drugs & Chemicals Ltd Profit & Loss

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales15192733334942465661759696
Expenses14152026264034384645597876
Operating Profit13777888916161820
OPM %9%18%27%22%22%17%19%18%17%26%22%19%21%
Other Income0000000002000
Interest0144422211000
Depreciation0122333333333
Profit before tax12111333615131517
Tax %2%34%40%27%58%42%42%24%21%21%27%25%
Net Profit1111022351291113
EPS in Rs4.742.071.331.650.783.432.782.793.879.447.499.2110.30
Dividend Payout %0%0%0%0%0%0%0%0%32%0%0%0%

Par Drugs & Chemicals Ltd Profit & Loss Yearly Chart

Par Drugs & Chemicals Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:18%
3 Years:20%
TTM:4%
Compounded Profit Growth
10 Years:%
5 Years:50%
3 Years:33%
TTM:38%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:72%
1 Year:45%
Return on Equity
10 Years:%
5 Years:17%
3 Years:18%
Last Year:17%

Par Drugs & Chemicals Ltd Balance Sheet

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1333333466121212
Reserves568991112253446485966
Preference Capital066666600000
Borrowings121038333125231268000
Other Liabilities3101315161816111316191817
Total Liabilities21296159585654516076798996
Fixed Assets13144745434239363430343840
CWIP0600000015001
Investments0000000000000
Other Assets891413151415152542445055
Total Assets21296159585654516076798996

Par Drugs & Chemicals Ltd Reserves and Borrowings Chart

Par Drugs & Chemicals Ltd Cash Flow

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 01597942812813
Cash from Investing Activity 0-7-6-0-0-2-1-0-10-3-7
Cash from Financing Activity 062-9-5-8-4-212-100
Net Cash Flow001-11-10-0714-56

Par Drugs & Chemicals Ltd Financial Efficiency Indicators

MonthMar 2011Mar 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days7267104838161756781759065
Inventory Days12911115869838145506049
Days Payable171184183135107949611213573
Cash Conversion Cycle7267621057-5515530131440
Working Capital Days1281141026166-4184739446150
ROCE %12%10%9%12%11%12%16%25%22%23%

Par Drugs & Chemicals Ltd Financial Efficiency Indicators Chart

No data available for the Shareholding

No data available for the Shareholding Pattern chart.

No data available for the No. of Shareholders chart.

This stock is not held by any mutual fund

Par Drugs & Chemicals Ltd ROCE Trend

Par Drugs & Chemicals Ltd EPS Trend

Par Drugs & Chemicals Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)9.217.4918.877.755.40
Diluted EPS (Rs.)9.217.4918.877.755.40
Cash EPS (Rs.)11.8410.1523.4512.2312.18
Book Value[Excl.RevalReserv]/Share (Rs.)57.9048.6684.8766.0264.99
Book Value[Incl.RevalReserv]/Share (Rs.)57.9048.6684.8766.0264.99
Dividend / Share (Rs.)0.001.250.001.250.00
Revenue From Operations / Share (Rs.)77.8161.0198.7590.78103.39
PBDIT / Share (Rs.)14.9913.3626.3415.5218.49
PBIT / Share (Rs.)12.3610.6921.7511.0311.71
PBT / Share (Rs.)12.2510.3220.719.747.33
Net Profit / Share (Rs.)9.217.4918.877.755.40
PBDIT Margin (%)19.2621.8926.6617.0917.88
PBIT Margin (%)15.8817.5222.0212.1511.32
PBT Margin (%)15.7416.9220.9710.727.08
Net Profit Margin (%)11.8312.2719.118.535.22
Return on Networth / Equity (%)15.9115.3822.2311.738.30
Return on Capital Employeed (%)20.3120.6122.1513.7713.48
Return On Assets (%)12.7511.7015.207.924.70
Long Term Debt / Equity (X)0.000.000.080.110.20
Total Debt / Equity (X)0.000.000.140.110.35
Asset Turnover Ratio (%)1.140.960.891.000.87
Current Ratio (X)3.532.932.582.231.14
Quick Ratio (X)3.152.612.391.960.79
Inventory Turnover Ratio (X)8.137.687.476.154.60
Dividend Payout Ratio (NP) (%)0.0016.690.0032.270.00
Dividend Payout Ratio (CP) (%)0.0012.310.0020.430.00
Earning Retention Ratio (%)0.0083.310.0067.730.00
Cash Earning Retention Ratio (%)0.0087.690.0079.570.00
Interest Coverage Ratio (X)138.4836.1925.2212.034.22
Interest Coverage Ratio (Post Tax) (X)86.0921.2815.997.002.23
Enterprise Value (Cr.)150.02180.3662.6416.620.00
EV / Net Operating Revenue (X)1.572.401.030.290.00
EV / EBITDA (X)8.1310.973.871.740.00
MarketCap / Net Operating Revenue (X)1.802.621.250.340.00
Retention Ratios (%)0.0083.300.0067.720.00
Price / BV (X)2.423.281.460.470.00
Price / Net Operating Revenue (X)1.802.621.250.340.00
EarningsYield0.060.040.150.240.00

Par Drugs & Chemicals Ltd Profitability Ratios (%)

Par Drugs & Chemicals Ltd Liquidity Ratios

Par Drugs & Chemicals Ltd Liquidity Ratios (%)

Par Drugs & Chemicals Ltd Interest Coverage Ratios (%)

Par Drugs & Chemicals Ltd Valuation Ratios

Fair Value / Intrinsic Value of Par Drugs & Chemicals Ltd

Fair Value: ₹202.85

The stock is overvalued by 3.86% compared to the current price ₹211

*Investments are subject to market risks

Strength and Weakness of Par Drugs & Chemicals Ltd

StrengthWeakness
  1. The company has higher reserves (26.00 cr) compared to borrowings (2.77 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (49.85 cr) and profit (6.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 17.74 and average Dividend Yield of 15.78%.
  2. The stock has a low average ROCE of 12.67%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 60.50, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 38.83, which may not be favorable.

Should I Buy Par Drugs & Chemicals Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Par Drugs & Chemicals Ltd:
    1. Net Profit Margin: 11.83%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 20.31% (Industry Average ROCE: 20.74%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 86.09
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 3.15
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 18.3 (Industry average Stock P/E: 32.16)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.00
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Par Drugs & Chemicals Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE