Par Drugs and Chemicals Limited
Par Drugs and Chemicals Limited Fundamental Analysis
Par Drugs and Chemicals Limited (PAR.NS) shows moderate financial fundamentals with a PE ratio of 7.50, profit margin of 13.07%, and ROE of 13.87%. The company generates $1.1B in annual revenue with moderate year-over-year growth of 5.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PAR.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPAR.NS demonstrates superior asset utilization.
Valuation Score
ExcellentPAR.NS trades at attractive valuation levels.
Growth Score
ModeratePAR.NS shows steady but slowing expansion.
Financial Health Score
ExcellentPAR.NS maintains a strong and stable balance sheet.
Profitability Score
WeakPAR.NS struggles to sustain strong margins.
Key Financial Metrics
Is PAR.NS Expensive or Cheap?
P/E Ratio
PAR.NS trades at 7.50 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PAR.NS's PEG of 0.17 indicates potential undervaluation.
Price to Book
The market values Par Drugs and Chemicals Limited at 0.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.76 times EBITDA. This is generally considered low.
How Well Does PAR.NS Make Money?
Net Profit Margin
For every $100 in sales, Par Drugs and Chemicals Limited keeps $13.07 as profit after all expenses.
Operating Margin
Core operations generate 13.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.87 in profit for every $100 of shareholder equity.
ROA
Par Drugs and Chemicals Limited generates $10.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Par Drugs and Chemicals Limited generates limited operating cash flow of $80.95M, signaling weaker underlying cash strength.
Free Cash Flow
Par Drugs and Chemicals Limited produces free cash flow of $73.74M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.99 in free cash annually.
FCF Yield
PAR.NS converts 7.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How PAR.NS Stacks Against Its Sector Peers
| Metric | PAR.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.50 | 27.85 | Better (Cheaper) |
| ROE | 13.87% | 779.00% | Weak |
| Net Margin | 13.07% | -21544.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 261.05 | Strong (Low Leverage) |
| Current Ratio | 3.57 | 4.55 | Strong Liquidity |
| ROA | 10.90% | -9957.00% (disorted) | Strong |
PAR.NS outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Par Drugs and Chemicals Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
83.23%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
180.28%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
110.07%
Industry Style: Defensive, Growth, Innovation
High Growth