AKUMS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.8

Here’s a full-spectrum dive into Akums Drugs & Pharmaceuticals Ltd. (AKUMS) — one of India's largest pharmaceutical contract manufacturers, now bouncing back with stellar profit growth and low debt exposure.

💊 Core Financial Overview

Profitability & Returns

ROE: 17.2%, ROCE: 16.2% — solid metrics that indicate strong capital efficiency.

EPS: ₹21.5 — decent per-share earnings in this price range.

PAT Surge: ₹61.8 Cr to ₹142 Cr — +458% quarterly jump, likely reflecting scale expansion or margin uplift.

Leverage Profile

Debt-to-Equity: 0.03 — virtually debt-free, offering operational agility.

Dividend Yield: 0.00% — growth-oriented strategy with profit retention.

📊 Valuation Metrics

Metric Value Interpretation

P/E Ratio 26.6 Moderately undervalued vs Industry PE: 34.0

P/B Ratio ~2.81 Acceptable considering Book Value ₹194

PEG Ratio 0.54 ✅ Indicates undervaluation relative to earnings growth

Intrinsic Value Slightly Above CMP Fundamentals support upward re-rating

🧪 Business Model & Strategic Positioning

Specialized in pharma contract manufacturing — tablets, capsules, injectables, ointments, etc.

Trusted supplier for branded pharma players; strong compliance and operational benchmarks.

Leverages economies of scale across multiple facilities.

Institutional Moves

FII Holdings ↓ -1.53% — some trimming, likely profit booking or sentiment shift

DII Holdings ↑ +1.46% — domestic conviction stepping in amid improved results

📉 Technical Indicators

RSI: 46.4 — neutral zone; no extreme momentum signal.

MACD: -6.93 — bearish crossover; possible short-term weakness.

CMP trading below DMA 50 (₹551) & DMA 200 (₹596) — downtrend may be cooling.

Price near 52W low ₹405, far from high ₹1,176 — scope for rebound if earnings sustain.

📍 Suggested Entry Zone & Long-Term Strategy

Entry Zone: ₹520–₹545 — attractive accumulation range near technical supports.

For long-term holders

Offers strong exposure to India’s export-led pharma outsourcing story.

Execution visibility and PAT growth make it a compelling medium-term bet.

Watch for margin consistency, new contract wins, and export license updates.

Want to evaluate how AKUMS stacks up against peers like Divi’s Labs, Suven Pharma, or Solara Active Pharma in terms of outsourcing models, margins, and growth trajectory? I can pull together a head-to-head strategic dashboard 💊📊.

Edit in a page