Palash Securities (NSEI:PALASHSECU) - Share price, News & Analysis

PALASHSECU fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

PALASHSECU Stock Overview

Palash Securities Limited, an investment company, engages in food processing business in India and internationally.

Risk Analysis

Earnings have declined by 68.6% per year over past 5 years

Does not have a meaningful market cap (₹1B)

Palash Securities Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Palash Securities
Historical stock prices
Current Share Price	₹99.85
52 Week High	₹125.00
52 Week Low	₹57.30
Beta	0.91
1 Month Change	-3.99%
3 Month Change	-8.56%
1 Year Change	27.28%
3 Year Change	143.54%
5 Year Change	n/a
Change since IPO	84.74%

Recent News & Updates

Nov 25

Would Palash Securities (NSE:PALASHSECU) Be Better Off With Less Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	PALASHSECU	IN Food	IN Market
7D	-9.1%	-2.5%	-1.6%
1Y	27.3%	-6.4%	-1.6%

Return vs Industry: PALASHSECU exceeded the Indian Food industry which returned -6.4% over the past year.

Return vs Market: PALASHSECU exceeded the Indian Market which returned -1.6% over the past year.

Price Volatility

Is PALASHSECU's price volatile compared to industry and market?
PALASHSECU volatility
PALASHSECU Average Weekly Movement	6.0%
Food Industry Average Movement	7.4%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.7%
10% least volatile stocks in IN Market	4.4%

Stable Share Price: PALASHSECU is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PALASHSECU's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2015	n/a	Chand Patodia	https://www.birla-sugar.com/Our-Companies/About-Us-PALASH-SECURITIES-LIMITED

Palash Securities Limited, an investment company, engages in food processing business in India and internationally. It operates through two segments, Food Processing Business and Investing Business. The company offers canned fruits and vegetables, jams jellies, marmalades, juices, tomato ketchups/purees/sauces, vegetable sauces, and squashes, as well as breakfast cereals, such as cornflakes, chocos, white oats, etc. It also invests and deals in shares and securities; and immovable properties.

Palash Securities Fundamentals Summary

How do Palash Securities's earnings and revenue compare to its market cap?
PALASHSECU fundamental statistics
Market Cap	₹1.08b
Earnings (TTM)	-₹85.46m
Revenue (TTM)	₹556.05m

1.9x

P/S Ratio

-12.7x

P/E Ratio

Is PALASHSECU overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PALASHSECU income statement (TTM)
Revenue	₹556.05m
Cost of Revenue	₹389.08m
Gross Profit	₹166.97m
Other Expenses	₹252.43m
Earnings	-₹85.46m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-8.54
Gross Margin	30.03%
Net Profit Margin	-15.37%
Debt/Equity Ratio	4.2%

How did PALASHSECU perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is PALASHSECU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PALASHSECU?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PALASHSECU. This is calculated by dividing PALASHSECU's market cap by their current preferred multiple.
What is PALASHSECU's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹1.08b

PALASHSECU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	-12.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does PALASHSECU's PS Ratio compare to its peers?

PALASHSECU PS Ratio vs Peers

The above table shows the PS ratio for PALASHSECU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	31.5x

Forward PS

Price-To-Sales vs Peers: PALASHSECU is good value based on its Price-To-Sales Ratio (1.9x) compared to the peer average (31.5x).

Price to Earnings Ratio vs Industry

How does PALASHSECU's PE Ratio compare vs other companies in the Indian Food Industry?

Price-To-Sales vs Industry: PALASHSECU is expensive based on its Price-To-Sales Ratio (1.9x) compared to the Indian Food industry average (0.8x)

Price to Sales Ratio vs Fair Ratio

What is PALASHSECU's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PALASHSECU PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.9x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate PALASHSECU's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of PALASHSECU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate PALASHSECU's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate PALASHSECU's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PALASHSECU's PEG Ratio to determine if it is good value.

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Future Growth

How is Palash Securities forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.6%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Palash Securities has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Palash Securities's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Palash Securities competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Palash Securities performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-68.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PALASHSECU is currently unprofitable.

Growing Profit Margin: PALASHSECU is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: PALASHSECU is unprofitable, and losses have increased over the past 5 years at a rate of 68.6% per year.

Accelerating Growth: Unable to compare PALASHSECU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PALASHSECU is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (12.1%).

Return on Equity

High ROE: PALASHSECU has a negative Return on Equity (-1.56%), as it is currently unprofitable.

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Financial Health

How is Palash Securities's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: PALASHSECU's short term assets (₹328.6M) exceed its short term liabilities (₹320.6M).

Long Term Liabilities: PALASHSECU's short term assets (₹328.6M) exceed its long term liabilities (₹215.5M).

Debt to Equity History and Analysis

Debt Level: PALASHSECU's net debt to equity ratio (3.3%) is considered satisfactory.

Reducing Debt: PALASHSECU's debt to equity ratio has reduced from 76.8% to 4.2% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PALASHSECU has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PALASHSECU is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 29.8% per year.

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Dividend

What is Palash Securities's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate PALASHSECU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PALASHSECU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PALASHSECU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PALASHSECU's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PALASHSECU has not reported any payouts.

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Management

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

5.3yrs

Average board tenure

CEO

Chand Patodia (73 yo)

5.25yrs

Tenure

Mr. Chand Bihari Patodia serves as Group President of Avadh Sugar & Energy Limited. Mr. Patodia has been Managing Director of Palash Securities Limited since March 30, 2017. Mr. Patodia serves as an Adviso...

Board Members

Experienced Board: PALASHSECU's board of directors are considered experienced (5.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/22 00:00
End of Day Share Price	2022/06/22 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31