⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
AGARWALEYE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | AGARWALEYE | Market Cap | 13,951 Cr. | Current Price | 443 ₹ | High / Low | 568 ₹ |
| Stock P/E | 266 | Book Value | 61.8 ₹ | Dividend Yield | 0.00 % | ROCE | 5.94 % |
| ROE | 1.31 % | Face Value | 1.00 ₹ | DMA 50 | 485 ₹ | DMA 200 | 464 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | -0.14 % | PAT Qtr | 4.95 Cr. | PAT Prev Qtr | 10.4 Cr. |
| RSI | 33.0 | MACD | -17.8 | Volume | 4,04,933 | Avg Vol 1Wk | 4,12,822 |
| Low price | 327 ₹ | High price | 568 ₹ | PEG Ratio | 1.74 | Debt to equity | 0.30 |
| 52w Index | 48.2 % | Qtr Profit Var | 512 % | EPS | 1.55 ₹ | Industry PE | 45.2 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT fell from 10.4 Cr. to 4.95 Cr., showing earnings weakness despite reported YoY profit variation of 512%.
- Profit Margins: ROE at 1.31% and ROCE at 5.94% are very weak, reflecting poor efficiency.
- Debt Ratios: Debt-to-equity at 0.30 indicates moderate leverage, manageable but adds risk.
- Cash Flows: Dividend yield at 0.00% shows no direct shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 266 vs Industry PE of 45.2, indicating extreme overvaluation.
- P/B Ratio: Current Price 443 ₹ / Book Value 61.8 ₹ ≈ 7.16, showing premium valuation.
- PEG Ratio: 1.74, suggesting growth is priced reasonably but with volatility.
- Intrinsic Value: Estimated fair value around 360–380 ₹, making current price significantly overvalued.
🏢 Business Model & Competitive Advantage
- Agarwal Eye Hospital operates in healthcare services, specializing in eye care and ophthalmology.
- Competitive advantage lies in brand recognition, specialized medical expertise, and growing demand for healthcare services.
- However, profitability remains weak and valuations are stretched, limiting financial attractiveness.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only if price corrects to 360–380 ₹, closer to intrinsic value.
- Long-Term Holding: Risky at current valuations due to weak return ratios; suitable only for investors with high risk appetite betting on healthcare expansion.
✅ Positive
- Strong brand presence in specialized healthcare (eye care).
- Moderate debt-to-equity ratio (0.30), manageable leverage.
- Reported YoY profit variation (+512%) shows potential operational improvement.
⚠️ Limitation
- Extremely high P/E ratio (266) compared to industry average (45.2).
- Weak ROE (1.31%) and ROCE (5.94%) highlight poor efficiency.
- Dividend yield at 0.00% offers no shareholder returns.
📉 Company Negative News
- Decline in FII holding (-0.07%) and DII holding (-0.14%) shows reduced institutional confidence.
- Technical indicators (RSI 33.0, MACD -17.8) show bearish sentiment.
📈 Company Positive News
- Healthcare demand continues to grow, providing long-term sector tailwinds.
- Reported profit variation (+512%) indicates potential recovery momentum.
🏭 Industry
- Healthcare industry PE at 45.2, much lower than Agarwal Eye’s 266, suggesting relative overvaluation.
- Industry growth supported by rising healthcare awareness and demand for specialized services.
🔎 Conclusion
- Agarwal Eye Hospital has strong brand presence in healthcare but suffers from weak profitability and stretched valuations.
- Valuation is extremely high compared to industry peers, making current levels unattractive for fresh entry.
- Best suited for long-term investors only if price corrects to 360–380 ₹; cautious accumulation advised for exposure to India’s healthcare growth story.
I can also expand on healthcare sector demand drivers (aging population, rising lifestyle-related eye issues) to show how Agarwal Eye could benefit in the long run.