Can I buy primo chemicals limited stock
10/13/2024 01:00pm
**Primo Water (PRMW) stock analysis and prediction**:
1. **Financial Performance and Ratios**:
- Primo Water has reported a net loss of Rs 13.41 crore in the March 2024 quarter, with a net loss of Rs 12.84 crore for the year ending March 2024.
- The company's net profit margin has been negative, with a low of -91.25% and an average of -52.49% over the past years.
- Primo Water has a low return on equity (ROE) of -17.73% over the last 3 years.
- The firm's EPS (Earnings Per Share) has been negative, with an average of -0.80 per share over the past year.
2. **Market Sentiment and Analysts' View**:
- The stock has been volatile, with a significant drop of -23550.26% in November 2024, followed by a recovery of 15.19% in October 2025.
- There is no available consensus rating for Primo Water.
- The stock's PE ratio is -17.73, indicating that it is currently trading at a loss.
- The P/B ratio is 0.00, suggesting that the stock is not currently generating profits.
- The P/S ratio is 2.58, which is relatively low compared to other stocks in the market.
3. **Technical Indicators**:
- The stock's 5-day moving average is Rs 0.81, the 10-day is Rs 0.80, and the 50-day is Rs 0.81.
- The Moving Average Convergence Divergence (MACD) is -0.01, the Relative Strength Index (RSI) is 43.33, and the Stochastic KDJ is 56.67.
4. **Market Position and Outlook**:
- Primo Water has a low interest coverage ratio and a low return on assets, indicating inefficiencies in managing assets to generate profit.
- The company's free cash flow per share is Rs 0.00, which may not be attractive for income-focused investors.
- Despite these challenges, the stock has shown some resilience, with a recent increase of 6.65% in October 2025.
In conclusion, while there is some potential for growth based on the low P/E ratio and the recent increase in stock price, the negative aspects, including significant losses, negative profit margins, and a lack of positive consensus, suggest that potential investors should exercise caution. The stock's volatility and the lack of a clear, positive trend in profitability may make it a higher-risk investment. Investors should consider their risk tolerance and investment goals before deciding to buy Primo Water stock.