Parampara Dairy (PARAMPARA)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 23.74% shows the packaging business is expanding its topline at a healthy clip.
• Profit growth of 50% outpacing sales growth suggests some improving margin or cost control, albeit from a small base.
• Piotroski F-Score of 7/9 indicates recent financial health is not deteriorating on the metrics available.
• Quarterly sales of ₹10 Cr against an ₹11 Cr market cap shows the business has a real operational scale, even if profits are negligible.

Concerns

• Promoter holding of only 1.46% is a severe governance red flag and shows almost no skin in the game.
• ROCE of just 1.05% and latest-quarter net profit of ₹0 Cr indicate very poor returns on capital and unreliable earnings.
• P/E of 59.16 with a PEG of 1.60 offers no margin of safety at this price.
• No dividend, no book value, and no debt-equity data leave asset quality and shareholder returns largely undisclosed.

AI Analysis

Let me be blunt: at ₹11 a share, Parampara Dairy has the surface of a growth story but not the substance I look for. Sales grew 23.74% and profits 50%, but when the latest quarter delivers ₹10 crore of revenue and essentially zero net profit, those growth rates are flattering a tiny base. Market cap is just ₹11 crore; P/E is 59.16, and PEG 1.60. That is not a margin of safety. ROCE of 1.05% tells me the business is earning very little on the capital employed. A packaging company with this return profile is a capital guzzler, not a compounding machine. Promoter holding is only 1.46% — that alone disqualifies it for me. I cannot trust management that has almost no ownership and does not pay a dividend. Piotroski F-score of 7/9 suggests recent financials are not deteriorating, but Graham would remind me that a few good signals cannot replace a durable moat. There is no meaningful competitive advantage visible; in packaging, scale and efficiency rule, and this company's profitability suggests it has neither. At 52-week range of ₹10.45-₹12.95, the stock is near the low end, but a low price is not automatically cheap. Without book value or debt-equity data, I lack the margin-of-safety analysis I require. I would classify this as a fast grower on paper, but a fragile one. In India's small-cap market, a 1.46% promoter stake is an enormous governance red flag. I will watch from the sidelines until there is evidence of real profitability, improved returns on capital, and serious insider ownership.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer