Parin Enterpris. (PARIN)

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

Key Financials

Strengths

• Sales grew 192.94% and profit grew 136.30%, indicating strong demand and rapid expansion.
• PEG ratio of 0.58 suggests growth is still relatively attractive if the acceleration is sustained.
• Promoter holding is high at 72.76%, aligning management interests with shareholders.
• Piotroski F-Score of 7/9 reflects reasonably sound fundamentals for a fast-growing company.
• Latest quarter revenue of ₹109 crore shows meaningful scale in the furniture/home furnishing segment.

Concerns

• P/E of 96.09 implies a market cap of ₹806 crore against trailing earnings of only about ₹8.4 crore.
• Latest quarter net profit of ₹3 crore on sales of ₹109 crore translates to a thin net margin of just under 3%.
• Dividend yield is negligible at 0.03%, providing no income cushion if growth disappoints.
• FairStock Score of 33/100 flags the stock as risky, with ROCE of 11.67% only moderate for such a valuation.

AI Analysis

Parin Enterpris is not the kind of business I would normally warm to. At ₹651, the market is valuing the company at ₹806 crore, while trailing earnings implied by a P/E of about 96 are only around ₹8.4 crore. That means almost all the value depends on future growth. The growth numbers are eye-catching: sales up 192.94% and profits up 136.30%, and a PEG of 0.58 suggests the market expects that pace to continue. But Graham warned that high growth rates are never permanent, and a small stumble can crush a growth premium. The latest quarter shows why I am cautious: revenue of ₹109 crore produced just ₹3 crore in net profit, a margin below 3%. That is a low-quality earnings stream, especially in furniture and home furnishing, an industry with thin moats, cyclical demand, and intense competition. ROCE of 11.67% is respectable but not exceptional, and with no book value or debt/equity data available, I cannot fully assess the balance-sheet strength. On the positive side, promoter holding at 72.76% is a strong alignment signal, and a Piotroski F-score of 7/9 suggests the company is managing its fundamentals reasonably well. Still, the dividend yield of 0.03% means investors get no income while waiting. A FairStock Score of 33/100 reinforces the risk. This may well be a fast grower with momentum, but price is where the deal is made. At 96 times earnings, there is no margin of safety for a business earning thin margins. I would need a far lower price, or clear evidence of sustained margin expansion, before considering it.

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