Par Drugs and Chemicals Limited (PAR) AI Stock Analysis

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Par Drugs and Chemicals Limited

(NSE:PAR)

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Rating:72Outperform

Price Target:INR 134.00▲(12.61% Upside)

Action:reiterated

Date:10/17/26

The score is driven primarily by strong financial quality (especially the debt-free balance sheet and solid profitability) and a supportive low P/E valuation. These positives are partially offset by weak near-term technical momentum, with the stock trading below key moving averages and bearish momentum readings.

Positive Factors

Debt-free balance sheetA debt-free balance sheet materially lowers financial risk and preserves flexibility through changing business conditions. With no reported borrowing burden, the company can retain more operating resources for investment, withstand volatility, and avoid the refinancing and interest-cost pressures that affect leveraged peers.

Negative Factors

Inconsistent revenue growthThe uneven revenue trajectory makes the company’s underlying expansion less predictable than a consistently growing business. Periods of low-single-digit growth may limit operating leverage and make it harder to build durable scale, especially if the 2026 re-acceleration does not persist.

Par Drugs and Chemicals Limited (PAR) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.46B
Dividend Yield: ―
Average Volume (3M): 65.11K
Price to Earnings (P/E): 11.3
Beta (1Y): 0.79
Revenue Growth: 9.40%
EPS Growth: 34.12%
Country: India
Employees: 118
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

Par Drugs and Chemicals Limited Business Overview & Revenue Model

Company Description

Par Drugs and Chemicals Limited is an Indian enterprise that focuses on the creation, production, and sale of active pharmaceutical ingredients (APIs) and specialized chemicals. Its comprehensive product line features a diverse array of compounds, su...

How the Company Makes Money

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Par Drugs and Chemicals Limited Financial Statement Overview

Summary

Overall fundamentals are solid, led by a very strong, low-risk balance sheet with no debt (Balance Sheet Score: 92). Profitability remains healthy (2026 net margin ~12.6%), but revenue growth and margins have been inconsistent and cash conversion has been uneven at times (Income Statement Score: 74; Cash Flow Score: 77).

Income Statement

74Positive

Balance Sheet

92Very Positive

Cash Flow

77Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.08B	1.04B	1.01B	956.40M	950.95M	746.15M
Gross Profit	497.08M	504.71M	617.86M	609.88M	286.90M	173.68M
EBITDA	183.88M	211.32M	195.01M	229.53M	184.46M	163.61M
Net Income	129.91M	131.09M	133.58M	145.01M	113.34M	92.13M
Balance Sheet
Total Assets	1.39B	1.29B	1.19B	1.02B	888.68M	786.90M
Cash, Cash Equivalents and Short-Term Investments	363.62M	418.43M	275.77M	366.54M	222.43M	162.06M
Total Debt	0	0	0	0	0	0
Total Liabilities	194.08M	172.28M	204.15M	159.79M	176.30M	188.13M
Stockholders Equity	1.19B	1.12B	989.75M	856.32M	712.38M	598.77M
Cash Flow
Free Cash Flow	0	144.71M	149.34M	141.69M	57.44M	44.13M
Operating Cash Flow	0	164.32M	161.60M	202.49M	133.77M	76.15M
Investing Cash Flow	0	-21.66M	-252.37M	-58.38M	-73.38M	-30.18M
Financing Cash Flow	0	0	0	0	-24.00K	-95.54M

Par Drugs and Chemicals Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price119.00

Price Trends

50DMA124.34Negative

100DMA110.77Positive

200DMA100.83Positive

Market Momentum

MACD-0.64Negative

RSI54.49Neutral

STOCH79.01Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PAR, the sentiment is Positive. The current price of 119.00 is above the 20-day moving average (MA) of 111.15, below the 50-day MA of 124.34, and above the 200-day MA of 100.83, indicating a neutral trend. The MACD of -0.64 indicates Negative momentum. The RSI at 54.49 is Neutral, neither overbought nor oversold. The STOCH value of 79.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PAR.

Par Drugs and Chemicals Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:PAR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PAR	72Outperform	INR 1.46B	11.27	―	―	9.40%	34.12%
IN:BROOKS	61Neutral	INR 1.94B	2.59	―	―	-14.88%	431.30%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ALPA	54Neutral	INR 1.17B	33.32	―	―	0.46%	-83.31%
IN:BALPHARMA	45Neutral	INR 1.40B	20.03	―	1.33%	18.79%	-2.58%
IN:BIOFILCHEM	41Neutral	INR 508.72M	106.15	―	―	9.31%	-82.71%
IN:VIVIMEDLAB	37Underperform	INR 451.05M	-0.24	―	―	-39.80%	-452.04%

* General Sector Average

Performance Comparison

IN:PAR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:PAR	Par Drugs and Chemicals Limited	119.00	24.89	26.45%
IN:ALPA	Alpa Laboratories Limited	55.61	-24.36	-30.46%
IN:BALPHARMA	Bal Pharma Limited	90.10	11.30	14.34%
IN:BIOFILCHEM	Biofil Chemicals & Pharmaceuticals Ltd.	31.10	-8.68	-21.82%
IN:BROOKS	Brooks Laboratories Limited	64.23	-38.62	-37.55%
IN:VIVIMEDLAB	Vivimed Labs Limited	5.40	0.50	10.20%

Par Drugs and Chemicals Limited Corporate Events

Par Drugs and Chemicals’ 27th AGM Clears All Resolutions with Majority Support

Sep 27, 2026

Par Drugs and Chemicals Limited held its 27th Annual General Meeting on 26 September 2026 in Vadodara, Gujarat, providing shareholders with remote e-voting and on-site ballot options in line with the Companies Act and SEBI listing regulations. An ind...

Par Drugs and Chemicals Publishes AGM and E‑Voting Notice in Newspapers

Sep 5, 2026

Par Drugs and Chemicals Limited has published statutory newspaper advertisements announcing the notice and e‑voting details for its 27th Annual General Meeting. The communication, released in The Economic Times and Navgujarat Samay, is part of the co...

Par Drugs and Chemicals Flags Unclaimed Dividend Shares for Transfer to IEPF

Aug 21, 2026

Par Drugs and Chemicals Limited has notified shareholders and the stock exchange that certain equity shares are liable to be transferred to the Investor Education and Protection Fund, as required under the IEPF Authority Rules, 2016. The move affects...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 17, 2026

Par Drugs and Chemicals Limited AI Stock Analysis