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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Parag Milk Foods Ltd

About the Company - Parag Milk Foods Ltd

Parag Milk Foods Ltd. is a Public Limited Listed company incorporated on 29/12/1992 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L15204PN1992PLC070209 and registration number is 070209. Currently Company is involved in the business activities of Manufacture of dairy products. Company’s Total Operating Revenue is Rs. 2025.61 Cr. and Equity Capital is Rs. 95.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Food Processing - Bakery/Dairy/Fruits/OthersFlat No.1, Plot NO.19, Pune Maharashtra 411016investors@parag.com
http://www.paragmilkfoods.com
Management
NamePosition Held
Mr. Devendra ShahChairman & Wholetime Director
Mr. Pritam ShahManaging Director
Mr. Narendra AmbwaniIndependent Director
Mr. Nitin DhavalikarIndependent Director
Ms. Radhika DudhatIndependent Director
Mr. Nikhil VoraNon Exe.Non Ind.Director
Ms. Akshali ShahExecutive Director
Mr. Dnyanesh DarshaneIndependent Director

Parag Milk Foods Ltd. Share Price Update

Share PriceValue
Today₹261.55
Previous Day₹251.80

Basic Stock Data of Parag Milk Foods Ltd

Market Cap 3,015 Cr.
Current Price 257
High / Low290/68.0
Stock P/E29.2
Book Value 72.8
Dividend Yield0.00 %
ROCE8.72 %
ROE7.88 %
Face Value 10.0

Data Source: screener.in

Competitors of Parag Milk Foods Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Britannia Industries Ltd 1,17,805 Cr. 4,8915,386/4,15354.7 1181.47 %48.6 %66.6 % 1.00
Tasty Bite Eatables Ltd 3,480 Cr. 13,56219,867/7,95572.4 1,0850.01 %14.0 %13.5 % 10.0
Umang Dairies Ltd 215 Cr. 97.697.8/49.0 17.30.00 %0.38 %7.20 % 5.00
Hindustan Foods Ltd 5,964 Cr. 529669/49166.0 37.50.00 %18.2 %21.0 % 2.00
Nestle India Ltd 2,48,381 Cr. 2,5762,771/1,78882.8 32.10.65 %135 %108 % 1.00
Industry Average75,169.00 Cr4,331.1255.18257.980.43%43.24%43.26%3.80

Parag Milk Foods Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales474434438532539562691665736801750798801
Expenses4384163944794901,148681627702764709743738
Operating Profit3518455349-58510383437405663
OPM %7%4%10%10%9%-104%1%6%5%5%5%7%8%
Other Income373441031059666
Interest12121113141314141512172120
Depreciation13121313141413141218151515
Profit before tax141243125-60214101116152433
Tax %19%1,539%26%28%25%2%25%-10%13%-36%-41%-3%-4%
Net Profit11-10182319-5921011922212534
EPS in Rs1.33-1.151.832.391.99-62.051.071.060.791.901.822.152.91

Parag Milk Foods Ltd Quarterly Chart

Parag Milk Foods Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9009251,0881,4431,6451,7311,9552,3962,4381,8422,0722,8933,085
Expenses8178421,0061,3301,4941,6391,7582,1712,2251,7182,5102,7732,921
Operating Profit83838311315192197225213124-438120164
OPM %9%9%8%8%9%5%10%9%9%7%-21%4%5%
Other Income031-4-2-1199612214525
Interest40404447503336363847525762
Depreciation23262828334951505449545760
Profit before tax2119123467-111914812741-5225167
Tax %8%-9%-30%6%29%524%27%18%26%49%-2%-4%
Net Profit19211632475871219421-5325378
EPS in Rs11.9513.0110.0020.176.720.5710.3514.3511.142.46-55.834.546.66
Dividend Payout %0%0%0%0%0%88%7%7%4%20%0%0%

Parag Milk Foods Ltd Profit & Loss Yearly Chart

Parag Milk Foods Ltd Growth

Compounded Sales Growth
10 Years:12%
5 Years:8%
3 Years:6%
TTM:19%
Compounded Profit Growth
10 Years:10%
5 Years:-10%
3 Years:-17%
TTM:118%
Stock Price CAGR
10 Years:%
5 Years:2%
3 Years:29%
1 Year:167%
Return on Equity
10 Years:-1%
5 Years:-6%
3 Years:-20%
Last Year:8%

Parag Milk Foods Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1616161670848484848495117117
Reserves426581108291541628743827844456686737
Borrowings413491556545389261291240400384523596616
Other Liabilities130113161255241401378375379371321268273
Total Liabilities6016858149249911,2871,3821,4421,6901,6831,3951,6681,744
Fixed Assets246243242291345334397406430473459436411
CWIP7637282821202973104559
Investments0000001111055
Other Assets3484355356046189339641,0071,2531,2059261,1821,268
Total Assets6016858149249911,2871,3821,4421,6901,6831,3951,6681,744

Parag Milk Foods Ltd Reserves and Borrowings Chart

Parag Milk Foods Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 3416468859-1719140-66100-14956
Cash from Investing Activity -70-57-59-29-32-87-16-73-30-47-20-90
Cash from Financing Activity 364115-58-26140-12-91111-69241439
Net Cash Flow0-021136-10-2415-1573406

Parag Milk Foods Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days485855435237474245322221
Inventory Days73748373831361311131272049198
Days Payable444955665199917359894326
Cash Conversion Cycle76838350847487831141467093
Working Capital Days689294457964867811316092109
ROCE %15%11%9%13%17%7%17%18%14%7%-39%9%

Parag Milk Foods Ltd Financial Efficiency Indicators Chart

Parag Milk Foods Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters46.20%40.75%40.75%40.75%40.75%40.75%36.19%41.63%41.63%41.63%41.63%41.63%
FIIs6.10%5.76%4.12%4.37%4.47%3.42%12.95%11.73%10.23%8.75%8.75%8.83%
DIIs5.99%17.23%16.03%15.10%15.10%15.10%4.20%3.84%3.84%7.20%7.96%8.36%
Public41.50%36.08%38.92%39.60%39.50%40.55%46.48%42.67%44.16%42.27%41.53%41.02%
Others0.21%0.18%0.18%0.18%0.18%0.18%0.16%0.15%0.15%0.15%0.15%0.15%
No. of Shareholders53,06551,83353,81156,09365,04467,71261,41360,77062,05758,60062,70967,465

Parag Milk Foods Ltd Shareholding Pattern Chart

No. of Parag Milk Foods Ltd Shareholders

Parag Milk Foods Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Samco Active Momentum Fund5925332.7813.25

Parag Milk Foods Ltd ROCE Trend

Parag Milk Foods Ltd EPS Trend

Parag Milk Foods Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)5.07-56.912.4711.1614.39
Diluted EPS (Rs.)4.96-55.542.4611.1414.36
Cash EPS (Rs.)9.43-50.298.6417.5520.36
Book Value[Excl.RevalReserv]/Share (Rs.)68.9358.20110.57108.5598.54
Book Value[Incl.RevalReserv]/Share (Rs.)68.9358.20110.57108.5598.54
Revenue From Operations / Share (Rs.)246.81217.62219.42290.44285.40
PBDIT / Share (Rs.)13.95-43.8416.4826.0527.85
PBIT / Share (Rs.)9.06-49.4810.3019.6621.87
PBT / Share (Rs.)4.36-54.844.8515.1217.61
Net Profit / Share (Rs.)4.54-55.932.4711.1614.38
NP After MI And SOA / Share (Rs.)4.54-55.932.4711.1614.38
PBDIT Margin (%)5.65-20.147.508.979.75
PBIT Margin (%)3.67-22.734.696.777.66
PBT Margin (%)1.76-25.192.215.206.16
Net Profit Margin (%)1.84-25.701.123.845.03
NP After MI And SOA Margin (%)1.84-25.701.123.845.03
Return on Networth / Equity (%)6.59-96.112.2310.2814.59
Return on Capital Employeed (%)9.84-56.648.8716.9220.48
Return On Assets (%)3.19-38.171.235.568.37
Long Term Debt / Equity (X)0.310.460.030.050.07
Total Debt / Equity (X)0.720.930.370.400.25
Asset Turnover Ratio (%)1.891.351.081.541.68
Current Ratio (X)1.921.591.671.651.69
Quick Ratio (X)0.940.740.690.750.83
Inventory Turnover Ratio (X)4.553.141.973.223.37
Dividend Payout Ratio (NP) (%)0.000.000.008.975.22
Dividend Payout Ratio (CP) (%)0.000.000.005.703.69
Earning Retention Ratio (%)0.000.000.0091.0394.78
Cash Earning Retention Ratio (%)0.000.000.0094.3096.31
Interest Coverage Ratio (X)2.96-8.193.025.746.53
Interest Coverage Ratio (Post Tax) (X)1.97-9.451.453.464.37
Enterprise Value (Cr.)1425.611351.881218.17878.662397.33
EV / Net Operating Revenue (X)0.490.650.660.361.00
EV / EBITDA (X)8.72-3.248.814.0210.26
MarketCap / Net Operating Revenue (X)0.290.440.480.220.91
Retention Ratios (%)0.000.000.0091.0294.77
Price / BV (X)1.051.660.950.582.65
Price / Net Operating Revenue (X)0.290.440.480.220.91
EarningsYield0.06-0.570.020.170.05

Parag Milk Foods Ltd Profitability Ratios (%)

Parag Milk Foods Ltd Liquidity Ratios

Parag Milk Foods Ltd Liquidity Ratios (%)

Parag Milk Foods Ltd Interest Coverage Ratios (%)

Parag Milk Foods Ltd Valuation Ratios

Fair Value / Intrinsic Value of Parag Milk Foods Ltd

Fair Value: ₹170.86

The stock is overvalued by 33.52% compared to the current price ₹257

*Investments are subject to market risks

Strength and Weakness of Parag Milk Foods Ltd

StrengthWeakness
  1. The company has higher reserves (465.31 cr) compared to borrowings (438.85 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (141.69 cr) and profit (14.08 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 2.28 and average Dividend Yield of 0.01%.
  2. The stock has a low average ROCE of 8.17%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 90.00, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 86.92, which may not be favorable.

Should I Buy Parag Milk Foods Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Parag Milk Foods Ltd:
    1. Net Profit Margin: 1.84%
      • 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: 9.84% (Industry Average ROCE: 18.19%)
      • 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): 1.97
      • 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: 0.94
      • 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: 29.3 (Industry average Stock P/E: 63.01)
      • 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: 0.72
      • 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 Parag Milk Foods 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