EID Parry Share Price Target for 2024 to 2030: A Comprehensive Forecast

E I D-Parry (India) Ltd, a major player in the Indian agricultural input sector, has witnessed significant growth over the years. With the stock market becoming an attractive investment avenue, predicting future stock prices has become essential for traders and investors alike.

This article offers a detailed analysis and forecast for EID Parry’s share price from 2024 to 2030. Let’s dive in to understand how the company might perform and what traders and investors should expect.

Company Overview: EID Parry (India) Ltd

EID Parry operates within the Basic Materials sector, focusing primarily on agricultural inputs. It is a well-known entity in the Indian stock market, listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

The company’s performance has been influenced by several external factors like market trends, industry demand, and agricultural policies.

Current Market Performance

As of October 2024, EID Parry’s stock closed at ₹763.6, reflecting a slight decline in comparison to the previous day. The stock has shown mixed performance over the last week, fluctuating based on short-term market volatility. Despite this, the long-term outlook remains positive for investors looking for a stable investment in the agricultural input sector.

EID Parry Share Price Target for 2024

The share price of EID Parry in 2024 is expected to show strong momentum, particularly in the second half of the year. Here’s a month-by-month forecast:

The stock is likely to hit a minimum price of ₹915.34 by mid-year and a maximum price of ₹1208.53 by year-end. This forecast takes into account technical analysis and bullish trends in the agricultural input sector.

EID Parry Share Price Target for 2025

The stock is expected to continue its upward trend in 2025. Here’s a look at the predicted targets:

The stock is projected to reach ₹1383 by the end of 2025, with favorable market conditions potentially pushing it even higher. External factors, including agricultural performance and economic stability, will play a significant role.

EID Parry Share Price Target for 2026

As we move into 2026, the stock is likely to experience moderate growth. A detailed month-wise forecast is as follows:

The stock may reach a year-end target of ₹1582, with periodic dips due to macroeconomic factors.

EID Parry Share Price Target (2027 to 2030)

For the period from 2027 to 2030, the share price is expected to show sustained growth, backed by favorable market conditions and the company’s strong fundamentals.

By 2030, the stock is forecasted to reach ₹2714. The growth trajectory is expected to remain consistent, supported by robust demand in the agricultural sector and positive market sentiment.

Key Financial Ratios of EID Parry

P/E Ratio

• EID Parry: 182
• Industry Average: The typical P/E ratio in the sugar sector is around 20-30 for most companies.

Analysis: A P/E ratio of 182 indicates the stock is trading at a significant premium, which could be a red flag unless the company is expected to experience high growth in the future. Compared to its peers, EID Parry appears overvalued.

Return on Equity (ROE):

• EID Parry: 3.01%
• Industry Average: Generally, companies in the agricultural input sector have ROE ranging from 8% to 15%.

Analysis: EID Parry’s ROE of 3.01% is quite low, indicating the company is not generating strong returns on shareholders’ equity compared to industry standards. This suggests inefficiencies in utilizing its capital.

Return on Capital Employed (ROCE):

• EID Parry: 3.69%
• Industry Average: Peers in the sector usually report ROCE values in the range of 10%-15%.

Analysis: A low ROCE implies that EID Parry is not effectively using its capital to generate returns. It indicates weaker operational efficiency compared to competitors.

Debt to Equity Ratio:

Debt levels: EID Parry has manageable debt levels, but the increasing working capital days and a rise in borrowings suggest rising financial leverage.

Dividend Yield:

• EID Parry: 0.53%
• Industry Average: The dividend yield for similar companies can range from 1% to 2%.

Analysis: EID Parry’s dividend yield is lower than the industry average, making it less attractive for income-focused investors.

Net Profit Margin

• EID Parry: 4%
• Industry Average: 5-10%

Explanation: A net profit margin of 4% is on the lower end compared to the industry average. This indicates that EID Parry is generating less profit from its revenue compared to its peers.

A lower margin can be a result of higher operating costs, lower revenue efficiency, or pricing pressure. Improving operational efficiency or cutting costs could help boost this ratio.

Operating Profit Margin (OPM)

• EID Parry: 5%
• Industry Average: 8-12%

Explanation: Operating profit margin measures a company’s efficiency in controlling its operating expenses. EID Parry’s 5% OPM is below the industry average, indicating that its core operations aren’t as profitable or efficient as competitors.

This could be due to higher production costs or less control over operational expenditures. EID Parry needs to work on improving its operational performance to match industry standards.

Current Ratio

EID Parry: 1.2

• Industry Average: 1.5
• Explanation:

The current ratio measures a company’s ability to meet its short-term obligations. EID Parry’s current ratio of 1.2 is slightly below the industry average of 1.5, indicating that while it has enough current assets to cover current liabilities, its liquidity position isn’t as strong as competitors.

A current ratio above 1 is generally healthy, but there is room for improvement in liquidity management.

Quick Ratio

• EID Parry: 0.8
• Industry Average: 1

Explanation: The quick ratio excludes inventory and focuses on more liquid assets. EID Parry’s quick ratio of 0.8 is lower than the industry average, which indicates potential issues in covering short-term liabilities without relying on inventory sales.

It signals that the company might face liquidity issues if it needs to quickly meet its short-term liabilities.

Valuation Concerns:

EID Parry’s stock is trading at a very high P/E ratio compared to industry standards, suggesting it is overvalued.

Low Profitability Ratios:

Both ROE and ROCE are lower than the industry average, indicating that the company is struggling to efficiently generate returns from its assets and equity.

Debt Levels

While debt is under control, the company has been seeing fluctuations in working capital and operational profits, which need to improve for long-term sustainability.

10-Year EID Parry Share Price Target

Below is a table summarizing the projected stock price targets for EID Parry from 2024 to 2030:

5-Year Balance Sheet (₹ Crores)

5-Year Profit and Loss Statement (₹ Crores)

Analysis of EID Parry’s Performance

Sales Growth:

Sales have grown consistently from ₹1,845 crores in 2019 to ₹2,895 crores in 2023, showing a healthy increase in revenue. The company is expanding its operations despite some market challenges.

Operating Profit:

Operating profit has improved from a loss in 2019 to a substantial profit in 2023. This indicates better cost management and efficiency in operations.

Borrowings:

Borrowings decreased significantly in recent years, especially from ₹1,090 crores in 2020 to ₹547 crores in 2023. Lower debt levels reduce financial risk for the company.

Net Profit:

Net profit saw a significant spike in 2021, with ₹865 crores, but it dropped in 2022 and 2023 to ₹197 crores. This fluctuation shows that the company had exceptional gains in 2021, possibly due to one-off events or favorable market conditions.

Earnings Per Share (EPS):

EPS saw a major jump in 2021, reaching ₹48.83, but it dropped to ₹11.09 in 2023, reflecting the drop in net profits.

Current Year (2023) Performance Compared to Previous Years

The company has shown a mixed performance. While revenues and operating profits have been growing, the net profit and EPS have been inconsistent. The reduction in borrowings is a positive sign, indicating better financial discipline. However, the drop in net profits in recent years raises some concerns about sustainability.

Is EID Parry Performing Well?

Compared to Industry Average:

EID Parry’s profitability ratios like ROE (3.01%) and ROCE (3.69%) are lower than the industry averages (8%-15%), showing that the company is underperforming in generating returns for investors.

Current Indian Stock Market Situation:

The Indian stock market is currently volatile, especially in sectors like agriculture and sugar. EID Parry, being part of the sugar sector, faces challenges such as fluctuating demand and government policies.

Is It Good for Investors?

For a long-term investor, EID Parry has potential due to its consistent revenue growth and improved debt position. However, given the low profitability ratios and inconsistent profit growth, it may not be the best option for short-term investors. Investors should also consider the volatile nature of the sugar industry and keep an eye on how the company improves its operational efficiency.

Stock Forecast Insights

Bullish Outlook: The long-term outlook for EID Parry remains bullish, with consistent growth anticipated across the decade.

Market Volatility: While occasional dips in stock prices might occur due to market volatility or macroeconomic challenges, the overall trend is expected to be upward.

Key Drivers: Growth will be driven by strong fundamentals in the agricultural input sector, favorable government policies, and increasing demand for agricultural products.

Roshan Sharma

Roshan Sharma – Founder of StocksForBeginners.in

I’m Roshan Sharma, a stock market trader with 5+ years of experience. At StocksForBeginners.in, I provide expert fundamental analysis of Indian companies to help long-term investors make informed decisions. My mission is to simplify investing for beginners and share insights from my experience to guide others toward financial growth.