BSE:539889

Stock Analysis Report

Executive Summary

Parag Milk Foods Limited processes, manufactures, and sells milk and milk related products in India.


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has Parag Milk Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 539889's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.3%

539889

16.6%

IN Food

9.3%

IN Market


1 Year Return

-74.3%

539889

3.6%

IN Food

-29.6%

IN Market

Return vs Industry: 539889 underperformed the Indian Food industry which returned 3.6% over the past year.

Return vs Market: 539889 underperformed the Indian Market which returned -29.6% over the past year.


Shareholder returns

539889IndustryMarket
7 Day16.3%16.6%9.3%
30 Day-17.9%-8.2%-23.3%
90 Day-54.4%-7.0%-28.0%
1 Year-74.1%-74.3%5.1%3.6%-28.2%-29.6%
3 Year-73.0%-73.3%53.2%48.4%-15.8%-20.5%
5 Yearn/a95.0%85.5%-4.7%-9.6%

Price Volatility Vs. Market

How volatile is Parag Milk Foods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Parag Milk Foods undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 539889 (₹64.7) is trading below our estimate of fair value (₹195.03)

Significantly Below Fair Value: 539889 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 539889 is good value based on its PE Ratio (4.7x) compared to the Food industry average (10.4x).

PE vs Market: 539889 is good value based on its PE Ratio (4.7x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 539889 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 539889 is good value based on its PB Ratio (0.6x) compared to the IN Food industry average (0.7x).


Next Steps

Future Growth

How is Parag Milk Foods forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539889's forecast earnings growth (18.6% per year) is above the savings rate (6.5%).

Earnings vs Market: 539889's earnings (18.6% per year) are forecast to grow slower than the Indian market (19.5% per year).

High Growth Earnings: 539889's earnings are forecast to grow, but not significantly.

Revenue vs Market: 539889's revenue (10.6% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 539889's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 539889's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has Parag Milk Foods performed over the past 5 years?

35.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539889 has high quality earnings.

Growing Profit Margin: 539889's current net profit margins (4.5%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: 539889's earnings have grown significantly by 35.9% per year over the past 5 years.

Accelerating Growth: 539889's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 539889 had negative earnings growth (-0.6%) over the past year, making it difficult to compare to the Food industry average (20.6%).


Return on Equity

High ROE: 539889's Return on Equity (13.2%) is considered low.


Next Steps

Financial Health

How is Parag Milk Foods's financial position?


Financial Position Analysis

Short Term Liabilities: 539889's short term assets (₹9.9B) exceed its short term liabilities (₹5.7B).

Long Term Liabilities: 539889's short term assets (₹9.9B) exceed its long term liabilities (₹643.2M).


Debt to Equity History and Analysis

Debt Level: 539889's debt to equity ratio (24.2%) is considered satisfactory.

Reducing Debt: 539889's debt to equity ratio has reduced from 468.7% to 24.2% over the past 5 years.

Debt Coverage: 539889's debt is well covered by operating cash flow (44.3%).

Interest Coverage: 539889's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet

Inventory Level: 539889 has a high level of physical assets or inventory.

Debt Coverage by Assets: 539889's debt is covered by short term assets (assets are 4.7x debt).


Next Steps

Dividend

What is Parag Milk Foods's current dividend yield, its reliability and sustainability?

1.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 539889's dividend (1.55%) is higher than the bottom 25% of dividend payers in the Indian market (0.94%).

High Dividend: 539889's dividend (1.55%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 539889 has been paying a dividend for less than 10 years.

Growing Dividend: 539889's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.3%), 539889's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 539889's dividends in 3 years are forecast to be thoroughly covered by earnings (7.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Venkat Shankar

0.75

Tenure

Mr. Venkat Shankar has been the Chief Executive Officer of Parag Milk Foods Limited since July 4, 2019. Mr. Shankar was Head of Dairy Business at Britannia Industries Limited until June 2019. He served as  ...


Leadership Team

NamePositionTenureCompensationOwnership
Devendra Shah
Executive Chairmanno data₹24.00m24.7% 1.3b
Pritam Shah
MD & Executive Director27.33yrs₹24.00m21.48% 1.2b
Rachana Sanganeria
Company Secretary & Compliance Officerno data₹2.10m0.0020% 105.2k
Akshali Shah
Senior Vice President of Strategy - Sales & Marketingno datano datano data
Venkat Shankar
Chief Executive Officer0.75yrno datano data
Shashikant Dalmia
Chief Financial Officerno datano datano data
Harshad Joshi
Chief Operations Officer2.17yrsno datano data
Natasha Kedia
Head of Investor Relationsno datano datano data
Pournima Surve
Manager of Corporate Communication & Public Relationsno datano datano data
Rajneesh Vasudeva
Senior Vice President of GT & MT Sales1.92yrsno datano data

1.9yrs

Average Tenure

49yo

Average Age

Experienced Management: 539889's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Devendra Shah
Executive Chairmanno data₹24.00m24.7% 1.3b
Pritam Shah
MD & Executive Director27.33yrs₹24.00m21.48% 1.2b
Ramesh Chandak
Independent Director4.58yrs₹500.00kno data
Sunil Goyal
Independent Director12.25yrsno datano data
Radhika Pereira
Independent Director4.92yrs₹700.00kno data
Narendra Ambwani
Independent Director4.92yrs₹700.00k0.0012% 63.9k
Bharatkumar Vyas
Non-Executive Director9.75yrs₹8.40mno data
Nitin Dhavalikar
Independent Director4.75yrs₹1.10mno data

4.9yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 539889's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Parag Milk Foods Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Parag Milk Foods Limited
  • Ticker: 539889
  • Exchange: BSE
  • Founded: 1992
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹5.368b
  • Shares outstanding: 83.94m
  • Website: https://www.paragmilkfoods.com

Number of Employees


Location

  • Parag Milk Foods Limited
  • Nirmal Building
  • 20th Floor
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539889BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2016
PARAGMILKNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2016

Biography

Parag Milk Foods Limited processes, manufactures, and sells milk and milk related products in India. It offers ghee, milk, paneer, dahi, curd, butter, dairy whitener, and gulab jamun mix products under the Gowardhan brand name; and flavored cheese wedges, spreads, slices, and angles, as well as flavored yoghurt, slim milk, whey, and ultra-heat treatment products under the Go brand. The company also provides milk under the Pride of Cows brand name; and flavoured milk under the Topp up brand. It also exports its products to the United Arab Emirates, Singapore, Oman, Kuwait, Mauritius, New Zealand, Congo, Hong Kong, the Philippines, Sri Lanka, Bangladesh, Maldives, the United States, etc. Parag Milk Foods Limited was founded in 1992 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 13:13
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.