Current Rating and Its Significance
MarketsMOJO’s 'Sell' rating for EID Parry (India) Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the stock’s attractiveness and risk profile.
Quality Assessment
As of 11 February 2026, EID Parry holds a 'good' quality grade. This reflects the company’s solid operational fundamentals and consistent profitability. The return on equity (ROE) stands at 10.4%, which, while respectable, suggests moderate efficiency in generating shareholder returns relative to its equity base. The company’s ability to maintain steady profit growth, with a 22% increase in profits over the past year, underscores its operational resilience within the fertilizers sector.
Valuation Considerations
Despite the positive quality indicators, the stock is currently rated as 'very expensive' in terms of valuation. Trading at a price-to-book (P/B) ratio of 1.9, EID Parry is priced at a premium compared to its historical averages and peer group valuations. This elevated valuation level implies that much of the company’s growth prospects may already be priced in, limiting upside potential. Investors should be mindful that paying a premium requires confidence in sustained earnings growth and market leadership, which may not be fully assured given current market dynamics.
Financial Trend Analysis
The financial trend for EID Parry is assessed as 'positive'. The company has demonstrated robust profit growth, with a PEG ratio of 0.9 indicating that earnings growth is reasonably aligned with its price appreciation. Over the past year, the stock has delivered a total return of 17.33%, reflecting investor confidence in its earnings trajectory. However, shorter-term returns have been mixed, with declines over the past three and six months of -9.23% and -19.62% respectively, signalling some volatility and market uncertainty.
Technical Outlook
From a technical perspective, the stock is currently graded as 'bearish'. Recent price movements show a decline of 1.03% on the latest trading day and a negative trend over the last month and half-year periods. This bearish technical stance suggests that momentum indicators and chart patterns are not favouring immediate price appreciation, which may deter short-term traders and add to the cautious sentiment among investors.
Stock Performance Snapshot
As of 11 February 2026, EID Parry’s stock performance reveals a mixed picture. While the one-year return is positive at 17.33%, reflecting solid gains over the longer term, the year-to-date return is negative at -10.86%. The stock’s recent volatility is evident in the one-month return of -1.75% and a six-month decline of -19.62%. These fluctuations highlight the importance of considering both fundamental strength and market sentiment when evaluating the stock.
Market Capitalisation and Sector Context
EID Parry is classified as a small-cap company within the fertilizers sector. This sector is often subject to cyclical trends influenced by agricultural demand, input costs, and government policies. The company’s valuation premium and positive financial trend suggest that it is viewed as a relatively strong player in its segment, but the bearish technical signals and expensive valuation warrant caution.
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Implications for Investors
For investors, the 'Sell' rating on EID Parry suggests a prudent approach. While the company’s quality and financial trends are encouraging, the high valuation and bearish technical outlook indicate limited near-term upside and potential downside risks. Investors should weigh these factors carefully, considering their risk tolerance and investment horizon. Those holding the stock may want to monitor price action closely and reassess their positions if the technical indicators improve or if valuation levels become more attractive.
Conclusion
In summary, EID Parry (India) Ltd’s current 'Sell' rating by MarketsMOJO reflects a balanced view that recognises the company’s operational strengths and positive earnings growth, but also highlights concerns over its expensive valuation and recent negative price momentum. As of 11 February 2026, investors are advised to exercise caution and consider the broader market context before making investment decisions related to this stock.
Summary of Key Metrics as of 11 February 2026:
- Mojo Score: 43.0 (Sell)
- ROE: 10.4%
- Price to Book Value: 1.9 (Very Expensive)
- PEG Ratio: 0.9
- 1-Year Return: +17.33%
- Year-to-Date Return: -10.86%
- Technical Grade: Bearish
These figures provide a comprehensive snapshot of the stock’s current standing, enabling investors to make informed decisions grounded in the latest data.
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