ScoreWhy is Parag Milk Foods Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 7.16%
- Poor long term growth as Net Sales has grown by an annual rate of 11.74% and Operating profit at 11.14% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -0.34
2
Positive results in Sep 25
- OPERATING CF(Y) Highest at Rs 212.04 Cr
- ROCE(HY) Highest at 13.79%
- DEBT-EQUITY RATIO(HY) Lowest at 0.45 times
3
With ROCE of 11.4, it has a Attractive valuation with a 2.6 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 48.20%, its profits have risen by 34.9% ; the PEG ratio of the company is 1
4
High Institutional Holdings at 20.31%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 4.21% over the previous quarter.
5
Market Beating performance in long term as well as near term
- Along with generating 48.20% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Parag Milk Foods should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Parag Milk Foods for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Parag Milk Foods
47.7%
0.98
49.28%
Sensex
4.78%
0.40
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.74%
EBIT Growth (5y)
11.14%
EBIT to Interest (avg)
-0.34
Debt to EBITDA (avg)
2.18
Net Debt to Equity (avg)
0.44
Sales to Capital Employed (avg)
1.87
Tax Ratio
9.59%
Dividend Payout Ratio
10.03%
Pledged Shares
0
Institutional Holding
20.31%
ROCE (avg)
-2.46%
ROE (avg)
6.88%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
54
Price to Book Value
3.24
EV to EBIT
22.49
EV to EBITDA
16.68
EV to Capital Employed
2.56
EV to Sales
1.21
PEG Ratio
1.00
Dividend Yield
NA
ROCE (Latest)
11.36%
ROE (Latest)
11.26%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
OPERATING CF(Y)
Highest at Rs 212.04 Cr
ROCE(HY)
Highest at 13.79%
DEBT-EQUITY RATIO(HY)
Lowest at 0.45 times
OPERATING PROFIT TO INTEREST(Q)
Highest at 3.56 times
PAT(Q)
At Rs 45.65 cr has Grown at 56.3%
NET SALES(Q)
Highest at Rs 1,007.95 cr
PBT LESS OI(Q)
Highest at Rs 32.46 cr.
EPS(Q)
Highest at Rs 3.65
-4What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 15.02 cr
NON-OPERATING INCOME(Q)
is 35.71 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Parag Milk Foods
Operating Cash Flow - Annually
Highest at Rs 212.04 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 3.56 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit After Tax (PAT) - Quarterly
At Rs 45.65 cr has Grown at 56.3%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.45 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales - Quarterly
Highest at Rs 1,007.95 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 32.46 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 45.65 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 3.65
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Parag Milk Foods
Non Operating Income - Quarterly
is 35.71 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 15.02 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Non Operating Income - Quarterly
Highest at Rs 18.03 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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