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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Parag Milk Foods Ltd

Basic Stock Data

Last Updated: June 20, 2024, 10:32 pm

Market Cap 2,172 Cr.
Current Price 182
High / Low290/111
Stock P/E24.0
Book Value 76.4
Dividend Yield0.00 %
ROCE11.0 %
ROE10.6 %
Face Value 10.0
PEG Ratio-5.16

Competitors of Parag Milk Foods Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bikaji Foods International Ltd 18,166 Cr. 726739/40367.4 49.00.14 %29.6 %24.7 % 1.00
Nestle India Ltd 2,42,659 Cr. 2,5172,771/2,14561.8 34.60.61 %169 %135 % 1.00
Sarveshwar Foods Ltd 875 Cr. 8.9415.7/2.1952.2 2.580.00 %11.4 %7.55 % 1.00
Chordia Food Products Ltd 36.3 Cr. 90.0115/78.045.4 36.40.00 %7.37 %5.66 % 10.0
Prataap Snacks Ltd 2,130 Cr. 8921,450/747104 2880.11 %1.15 %3.14 % 5.00
Industry Average25,189.25 Cr1,396.1064.53143.020.23%24.63%22.86%5.88

Quarterly Result

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

Last Updated: June 11, 2024, 3:11 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:53 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9009251,0881,4431,6451,7311,9552,3962,4381,8422,0722,8933,150
Expenses8178421,0061,3301,4941,6391,7582,1712,2251,7182,5082,7732,954
Operating Profit83838311315192197225213124-436120196
OPM %9%9%8%8%9%5%10%9%9%7%-21%4%6%
Other Income031-4-2-1199612204527
Interest40404447503336363847525770
Depreciation23262828334951505449545763
Profit before tax2119123467-111914812741-5225189
Tax %8%-9%-30%6%29%524%27%18%26%49%-2%-4%
Net Profit19211632475871219421-53253103
EPS in Rs11.9513.0110.0020.176.720.5710.3514.3511.142.46-55.834.548.78
Dividend Payout %0%0%0%0%0%88%7%7%4%20%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)10.53%-23.81%100.00%46.88%-89.36%1640.00%39.08%-22.31%-77.66%-2633.33%109.96%
Change in YoY Net Profit Growth (%)0.00%-34.34%123.81%-53.12%-136.24%1729.36%-1600.92%-61.39%-55.35%-2555.67%2743.30%

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:-3%
3 Years:24%
1 Year:165%
Return on Equity
10 Years:-1%
5 Years:-6%
3 Years:-20%
Last Year:8%

Last Updated: April 16, 2024, 9:36 pm

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

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

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-330.00-408.00-473.00-432.00-238.00-169.00-94.00-15.00-187.00-260.00-959.00-476.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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 Days689294457964867811316090109
ROCE %15%11%9%13%17%7%17%18%14%7%-39%9%

Financial Efficiency Indicators Chart

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

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Samco Active Momentum Fund592,5332.7813.25592,5332024-06-180%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)7.715.07-56.912.4711.16
Diluted EPS (Rs.)7.474.96-55.542.4611.14
Cash EPS (Rs.)12.659.43-50.298.6417.55
Book Value[Excl.RevalReserv]/Share (Rs.)76.5268.9358.20110.57108.55
Book Value[Incl.RevalReserv]/Share (Rs.)76.5268.9358.20110.57108.55
Revenue From Operations / Share (Rs.)263.31246.81217.62219.42290.44
PBDIT / Share (Rs.)18.6513.95-43.8416.4826.05
PBIT / Share (Rs.)13.609.06-49.4810.3019.66
PBT / Share (Rs.)7.204.36-54.844.8515.12
Net Profit / Share (Rs.)7.604.54-55.932.4711.16
NP After MI And SOA / Share (Rs.)7.604.54-55.932.4711.16
PBDIT Margin (%)7.085.65-20.147.508.97
PBIT Margin (%)5.163.67-22.734.696.77
PBT Margin (%)2.731.76-25.192.215.20
Net Profit Margin (%)2.881.84-25.701.123.84
NP After MI And SOA Margin (%)2.881.84-25.701.123.84
Return on Networth / Equity (%)9.936.59-96.112.2310.28
Return on Capital Employeed (%)13.619.84-56.648.8716.92
Return On Assets (%)4.793.19-38.171.235.56
Long Term Debt / Equity (X)0.260.310.460.030.05
Total Debt / Equity (X)0.670.720.930.370.40
Asset Turnover Ratio (%)1.761.891.351.081.54
Current Ratio (X)1.861.921.591.671.65
Quick Ratio (X)0.980.940.740.690.75
Inventory Turnover Ratio (X)4.114.553.141.973.22
Dividend Payout Ratio (NP) (%)0.000.000.000.008.97
Dividend Payout Ratio (CP) (%)0.000.000.000.005.70
Earning Retention Ratio (%)0.000.000.000.0091.03
Cash Earning Retention Ratio (%)0.000.000.000.0094.30
Interest Coverage Ratio (X)2.922.96-8.193.025.74
Interest Coverage Ratio (Post Tax) (X)2.191.97-9.451.453.46
Enterprise Value (Cr.)3064.221425.611351.881218.17878.66
EV / Net Operating Revenue (X)0.970.490.650.660.36
EV / EBITDA (X)13.788.72-3.248.814.02
MarketCap / Net Operating Revenue (X)0.790.290.440.480.22
Retention Ratios (%)0.000.000.000.0091.02
Price / BV (X)2.721.051.660.950.58
Price / Net Operating Revenue (X)0.790.290.440.480.22
EarningsYield0.030.06-0.570.020.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 198.25

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 8.93% compared to the current price 182

Intrinsic Value: 189.03

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 3.86% compared to the current price ₹182

Last 5 Year EPS CAGR: -4.65%

*Investments are subject to market risks

Strength and Weakness

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 (15.77 cr) over the years.
  1. The stock has a low average ROCE of 8.17%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 89.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 86.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Parag Milk Foods Ltd:
    1. Net Profit Margin: 2.88%
      • 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: 13.61% (Industry Average ROCE: 47.21%)
      • 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. ROE%: 9.93% (Industry Average ROE: 41.45%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.19
      • 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.
    5. Quick Ratio: 0.98
      • 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.
    6. Stock P/E: 24.0 (Industry average Stock P/E: 100.8)
      • 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.
    7. Total Debt / Equity: 0.67
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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
Milk & Milk ProductsFlat 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

FAQ

What is the latest fair value of Parag Milk Foods Ltd?

The latest fair value of Parag Milk Foods Ltd is ₹198.25.

What is the Market Cap of Parag Milk Foods Ltd?

The Market Cap of Parag Milk Foods Ltd is 2,172 Cr..

What is the current Stock Price of Parag Milk Foods Ltd as on 21 June 2024?

The current stock price of Parag Milk Foods Ltd as on 21 June 2024 is ₹182.

What is the High / Low of Parag Milk Foods Ltd stocks in FY 2024?

In FY 2024, the High / Low of Parag Milk Foods Ltd stocks is 290/111.

What is the Stock P/E of Parag Milk Foods Ltd?

The Stock P/E of Parag Milk Foods Ltd is 24.0.

What is the Book Value of Parag Milk Foods Ltd?

The Book Value of Parag Milk Foods Ltd is 76.4.

What is the Dividend Yield of Parag Milk Foods Ltd?

The Dividend Yield of Parag Milk Foods Ltd is 0.00 %.

What is the ROCE of Parag Milk Foods Ltd?

The ROCE of Parag Milk Foods Ltd is 11.0 %.

What is the ROE of Parag Milk Foods Ltd?

The ROE of Parag Milk Foods Ltd is 10.6 %.

What is the Face Value of Parag Milk Foods Ltd?

The Face Value of Parag Milk Foods Ltd is 10.0.

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