Stock Performance and Market Context
On 28 Jan 2026, Paramount Cosmetics (India) Ltd’s share price declined by 2.47%, closing at Rs.33.16, the lowest level recorded in the past year. This drop contrasts with the broader market trend, where the Sensex rose by 0.62% to close at 82,360.93 points. The Sensex is currently trading approximately 4.61% below its 52-week high of 86,159.02, supported by gains in mega-cap stocks. However, Paramount Cosmetics has lagged behind, underperforming its FMCG sector by 0.84% on the day.
The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained downward momentum. This technical positioning indicates that the stock has not found short-term or long-term support levels, which may be a reflection of underlying fundamental concerns.
Financial and Operational Overview
Paramount Cosmetics operates within the FMCG sector, a space known for steady demand but also intense competition. Over the past year, the company’s stock has declined by 29.28%, a stark contrast to the Sensex’s positive return of 8.44% during the same period. This underperformance extends over multiple years, with the stock consistently lagging behind the BSE500 benchmark in each of the last three annual periods.
Long-term financial metrics reveal challenges in generating robust returns. The company’s average Return on Capital Employed (ROCE) stands at a modest 1.86%, indicating limited efficiency in deploying capital to generate profits. Net sales have grown at an annualised rate of 10.88% over the last five years, while operating profit has expanded at a slower pace of 4.06%, suggesting margin pressures or rising costs.
Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 9.15 times. This elevated leverage ratio points to significant financial obligations relative to earnings before interest, taxes, depreciation, and amortisation, which could constrain flexibility in capital allocation and investment.
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Recent Financial Highlights
Despite the stock’s subdued performance, recent financial results show some positive trends. For the six months ending September 2025, Paramount Cosmetics reported net sales of Rs.13.37 crores, reflecting a robust growth rate of 51.07%. Profit after tax (PAT) for the same period was Rs.0.06 crores, indicating a modest increase compared to previous periods.
The company’s debtor turnover ratio for the half-year was recorded at 28.63 times, the highest in recent periods, suggesting improved efficiency in collecting receivables. Additionally, the ROCE for the latest period improved slightly to 2.5%, accompanied by an attractive enterprise value to capital employed ratio of 0.9. These metrics imply that the company is trading at a discount relative to its peers’ historical valuations.
However, the price-to-earnings-to-growth (PEG) ratio stands at 2, which may indicate that the stock’s price does not fully reflect the growth in profits, given the 22% increase in profits over the past year despite the negative stock return.
Shareholding and Market Grade
Promoters remain the majority shareholders of Paramount Cosmetics, maintaining significant control over the company’s strategic direction. The stock currently holds a Mojo Score of 32.0 and a Mojo Grade of Sell, an upgrade from its previous Strong Sell rating as of 24 Nov 2025. The market capitalisation grade is rated at 4, reflecting its mid-cap status within the FMCG sector.
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Comparative Performance and Sector Positioning
Over the last year, Paramount Cosmetics has consistently underperformed not only the Sensex but also the BSE500 index and its FMCG sector peers. The stock’s 52-week high was Rs.53.40, which it has now fallen well below by nearly 38%. This decline reflects a combination of modest sales growth, limited profitability expansion, and elevated leverage.
The FMCG sector has generally benefited from steady consumer demand and resilient earnings, yet Paramount Cosmetics’ relative underperformance highlights specific company-level factors impacting investor sentiment and valuation.
Technical Indicators and Trading Patterns
The stock’s position below all major moving averages suggests a bearish trend in both short and long-term timeframes. The 5-day and 20-day averages indicate immediate downward pressure, while the 50-day, 100-day, and 200-day averages confirm a sustained negative momentum. This technical setup often signals caution among market participants and may influence trading volumes and price volatility.
In contrast, the Sensex’s 50-day moving average remains above its 200-day moving average, a classic indicator of a bullish market environment. This divergence between the broader market and Paramount Cosmetics underscores the stock’s isolated challenges within an otherwise positive market context.
Summary of Key Metrics
To summarise, Paramount Cosmetics (India) Ltd’s stock has reached a 52-week low of Rs.33.16, reflecting a 29.28% decline over the past year. The company’s financial profile is characterised by low ROCE of 1.86%, moderate sales growth of 10.88% annually over five years, and a high Debt to EBITDA ratio of 9.15 times. Recent half-year results show encouraging sales growth of 51.07% and a slight improvement in profitability, but these have yet to translate into positive stock performance.
Trading below all key moving averages and underperforming its sector and benchmark indices, the stock remains under pressure amid a rising Sensex and strong mega-cap leadership in the market.
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