Why is Paramount Cosmetics (India) Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 1.86%
- Poor long term growth as Net Sales has grown by an annual rate of 10.88% and Operating profit at 4.06% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 9.15 times
2
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -27.25% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Paramount Cosmet for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Paramount Cosmet
-27.25%
-0.42
64.37%
Sensex
4.76%
0.40
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
10.88%
EBIT Growth (5y)
4.06%
EBIT to Interest (avg)
0.32
Debt to EBITDA (avg)
7.53
Net Debt to Equity (avg)
0.44
Sales to Capital Employed (avg)
0.71
Tax Ratio
77.78%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.03%
ROCE (avg)
4.22%
ROE (avg)
3.63%
Valuation Key Factors 
Factor
Value
P/E Ratio
310
Industry P/E
54
Price to Book Value
0.91
EV to EBIT
27.51
EV to EBITDA
22.37
EV to Capital Employed
0.94
EV to Sales
1.10
PEG Ratio
2.25
Dividend Yield
NA
ROCE (Latest)
2.48%
ROE (Latest)
0.29%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
Technical Movement
12What is working for the Company
NET SALES(Latest six months)
At Rs 13.37 cr has Grown at 51.07%
PAT(Latest six months)
Higher at Rs 0.06 cr
DEBTORS TURNOVER RATIO(HY)
Highest at 28.63 times
PBT LESS OI(Q)
Highest at Rs 0.00 cr.
EPS(Q)
Highest at Rs 0.25
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Paramount Cosmet
Net Sales - Latest six months
At Rs 13.37 cr has Grown at 51.07%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 0.00 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 0.12 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.25
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Highest at 28.63 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio






