Par Drugs and Chemicals Limited

NSEI:PAR Stock Report

Market Cap: ₹2.7b

Par Drugs and Chemicals Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: PAR (₹222.95) is trading above our estimate of fair value (₹72.24)

Significantly Below Fair Value: PAR is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As PAR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PAR. This is calculated by dividing PAR's market cap by their current earnings.
What is PAR's PE Ratio?
PE Ratio15x
Earnings₹182.71m
Market Cap₹2.74b

Price to Earnings Ratio vs Peers

How does PAR's PE Ratio compare to its peers?

The above table shows the PE ratio for PAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average46.2x
524654 Natural Capsules
138.1xn/a₹3.0b
524506 Coral Laboratories
12.3xn/a₹2.8b
531726 Panchsheel Organics
18.1xn/a₹2.6b
506128 Parnax Lab
16.2xn/a₹1.9b
PAR Par Drugs and Chemicals
15xn/a₹2.7b

Price-To-Earnings vs Peers: PAR is good value based on its Price-To-Earnings Ratio (15x) compared to the peer average (46.2x).

Price to Earnings Ratio vs Industry

How does PAR's PE Ratio compare vs other companies in the IN Pharmaceuticals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
INDSWFTLAB Ind-Swift Laboratories
1.8xn/aUS$79.01m
524652 Ind-Swift
2.7xn/aUS$17.70m
No more companies available in this PE range
PAR 15.0xIndustry Avg. 35.8xNo. of Companies20PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PAR is good value based on its Price-To-Earnings Ratio (15x) compared to the Indian Pharmaceuticals industry average (35.8x).

Price to Earnings Ratio vs Fair Ratio

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

PAR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15x
Fair PE Ration/a

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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