FUN-TECH Analysis of E.I.D. Parry

 

FUN-TECH Analysis of E.I.D. Parry- CMP - 405.95 Rs 

Company Basic Information - East India Distilleries Parry Limited is an Indian public company headquartered in Chennai, Tamil Nadu that has been in business for more than 225 years. It has many firsts to its credit, including the manufacturing of fertilizers for the first time in the Indian subcontinent

Sector - Agriculture                Industry - Sugar            Market Cap - 7193.01 Crore ( Small Cap )

 

Impacting News  

1.     Increasing Capacity by 40% in Andhra Pradesh which cost 92.5 Crore  

2.     5% High net sales resulted in 115% jump in profit.

Technical Views           

1.     Price is consolidating from 11 Aug 2021.

2.     In a Short Time frame , we get to see a Triangle pattern in formation which may result in little downfall as of now , but in Longer Time frame the stock is playing inside a parallel lines working as a harmonic pattern

3.     Volume is contracting gradually

4.     Sugar Industry is HOT right now and it would continue to do so

5.     Price is in Median of Bollinger Band, RSI is looking bullish and MACD too molding towards upside.

Fundamental Views

1.     Market price is less than its intrinsic value , which makes it undervalued right now.

2.     Its Price Earning Ratio is 16.07 where as Industry's Price to Earning Ratio is 50.49.

3.     Its Price to Book Ratio is 1.05 where as Industry's Price to Book Ratio is 9.34

4.     Mutual Fund increased holding in last quarter by 1.54%.

5.     Over the last 5 years free cash flow growth has been 80.65% vs Industry Average of 40.77.

1.     FY-18-19 - > -404.50

2.     FY-19-20 - > +1621.13

3.     FY-20-21 - > +4436.95

Forecasting For FY-21-22

1.     Return expectation - 30% Upside is expected

2.     Revenue Growth - 15% Upside is expected

3.     Earning Growth - 90% Upside is expected

Action Plan 

1.     Investment - Buy some here and add in DIP till 370 and stop at 350, hold it for 3-6 months for Target of 650 .

2.     Trading -  Buy some here and add in DIP till 390 and stop at 350 , hold it for 1-1.5 months for Target of 450-475-500-530.

For Chart Study  - https://www.tradingview.com/x/QemuikZr/