NSEI:PAR

Stock Analysis Report

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Executive Summary

Par Drugs and Chemicals Limited develops and manufactures active pharma ingredients in India. More Details


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Par Drugs and Chemicals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PAR is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: PAR's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Indian stocks.


Market Performance


7 Day Return

0%

PAR

-1.0%

IN Pharmaceuticals

-0.4%

IN Market


1 Year Return

84.2%

PAR

55.0%

IN Pharmaceuticals

15.9%

IN Market

Return vs Industry: PAR exceeded the Indian Pharmaceuticals industry which returned 55% over the past year.

Return vs Market: PAR exceeded the Indian Market which returned 15.9% over the past year.


Shareholder returns

PARIndustryMarket
7 Day0%-1.0%-0.4%
30 Day6.1%3.5%5.0%
90 Day33.6%10.0%24.4%
1 Year89.0%84.2%56.8%55.0%18.1%15.9%
3 Yearn/a42.6%39.2%9.7%4.4%
5 Yearn/a29.9%25.4%82.3%68.5%

Long-Term Price Volatility Vs. Market

How volatile is Par Drugs and Chemicals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Par Drugs and Chemicals 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: PAR (₹70) is trading below our estimate of fair value (₹948.53)

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


Price To Earnings Ratio

PE vs Industry: PAR is good value based on its PE Ratio (5.2x) compared to the IN Pharmaceuticals industry average (23.9x).

PE vs Market: PAR is good value based on its PE Ratio (5.2x) compared to the Indian market (19.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PAR is good value based on its PB Ratio (0.9x) compared to the IN Pharmaceuticals industry average (2.5x).


Next Steps

Future Growth

How is Par Drugs and Chemicals forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.0%

Forecasted Pharmaceuticals & Biotech 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 Par Drugs and Chemicals 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.


Next Steps

Past Performance

How has Par Drugs and Chemicals performed over the past 5 years?

38.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAR has high quality earnings.

Growing Profit Margin: PAR's current net profit margins (15.1%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: PAR's earnings have grown significantly by 38.8% per year over the past 5 years.

Accelerating Growth: PAR's earnings growth over the past year (308.4%) exceeds its 5-year average (38.8% per year).

Earnings vs Industry: PAR earnings growth over the past year (308.4%) exceeded the Pharmaceuticals industry 28.7%.


Return on Equity

High ROE: PAR's Return on Equity (18.1%) is considered low.


Next Steps

Financial Health

How is Par Drugs and Chemicals's financial position?


Financial Position Analysis

Short Term Liabilities: PAR's short term assets (₹323.3M) exceed its short term liabilities (₹132.4M).

Long Term Liabilities: PAR's short term assets (₹323.3M) exceed its long term liabilities (₹83.1M).


Debt to Equity History and Analysis

Debt Level: PAR's debt to equity ratio (9.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if PAR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PAR's debt is well covered by operating cash flow (276.5%).

Interest Coverage: PAR's interest payments on its debt are well covered by EBIT (17.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Par Drugs and Chemicals's current dividend yield, its reliability and sustainability?

3.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PAR's dividend (3.57%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: PAR's dividend (3.57%) is in the top 25% of dividend payers in the Indian market (1.81%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether PAR's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PAR's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.3%), PAR's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Jignesh Savani (43 yo)

2.17yrs

Tenure

₹4,298,008

Compensation

Mr. Jignesh Vallabhbhai Savani is Promoter of at Par Drugs and Chemicals Limited and has been its Chief Executive Officer since November 26, 2018 and serves as its Executive Director. He has completed Matr...


Leadership Team

NamePositionTenureCompensationOwnership
Falgun Savani
Chairman of the Board & MD2.17yrs₹4.30m40.61%
₹ 174.9m
Jignesh Savani
CEO & Executive Director2.17yrs₹4.30m23.42%
₹ 100.9m
Chintan Chauhan
Chief Financial Officer2.17yrs₹420.00kno data
Sanket Trivedi
Company Secretary & Compliance Officer2.33yrs₹320.18kno data
Ghanshayambhai Savani
Whole Time Director8.75yrs₹4.30m6.19%
₹ 26.6m

2.2yrs

Average Tenure

43yo

Average Age

Experienced Management: PAR's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Falgun Savani
Chairman of the Board & MD2.17yrs₹4.30m40.61%
₹ 174.9m
Jignesh Savani
CEO & Executive Director2.17yrs₹4.30m23.42%
₹ 100.9m
Ghanshayambhai Savani
Whole Time Director8.75yrs₹4.30m6.19%
₹ 26.6m
Pravin Bhayani
Independent Director2yrs₹9.00kno data
Kajal Vaghani
Independent Director2yrs₹5.00kno data
Krishna Shah
Independent Director2yrs₹8.00kno data
Shilpa Savani
Non Executive Director2.92yrs₹5.00k1.43%
₹ 6.1m
Nayna Savani
Non Executive Director2.92yrs₹9.00k1.47%
₹ 6.3m
Bintal Bhaveshkumar Shah
Additional Independent Director1yrno datano data

2.1yrs

Average Tenure

42.5yo

Average Age

Experienced Board: PAR's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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

Par Drugs and Chemicals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Par Drugs and Chemicals Limited
  • Ticker: PAR
  • Exchange: NSEI
  • Founded: 1982
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹430.662m
  • Shares outstanding: 6.15m
  • Website: https://pardrugs.com

Number of Employees


Location

  • Par Drugs and Chemicals Limited
  • 302 Anmol Plaza
  • Waghawadi Road
  • Bhavnagar
  • Gujarat
  • 364001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PARNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2019

Biography

Par Drugs and Chemicals Limited develops and manufactures active pharma ingredients in India. It offers magnesium salts, dried aluminum hydroxide gel, sodium aluminum silicate, precipitated silica, magnesi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 12:23
End of Day Share Price2021/01/13 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.