⚠ 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.
AKUMS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | AKUMS | Market Cap | 7,566 Cr. | Current Price | 481 ₹ | High / Low | 623 ₹ |
| Stock P/E | 59.6 | Book Value | 151 ₹ | Dividend Yield | 0.00 % | ROCE | 16.2 % |
| ROE | 13.2 % | Face Value | 2.00 ₹ | DMA 50 | 466 ₹ | DMA 200 | 485 ₹ |
| Chg in FII Hold | -1.13 % | Chg in DII Hold | 5.13 % | PAT Qtr | 31.0 Cr. | PAT Prev Qtr | 23.5 Cr. |
| RSI | 52.9 | MACD | 4.27 | Volume | 1,00,257 | Avg Vol 1Wk | 1,60,722 |
| Low price | 405 ₹ | High price | 623 ₹ | PEG Ratio | 1.74 | Debt to equity | 0.02 |
| 52w Index | 35.0 % | Qtr Profit Var | -24.7 % | EPS | 7.88 ₹ | Industry PE | 27.6 |
📊 Financials
- Revenue & Profitability: PAT rose from ₹23.5 Cr. to ₹31 Cr., showing growth, but quarterly profit variation at -24.7% indicates inconsistency. EPS at ₹7.88 is modest.
- Margins & Returns: ROCE at 16.2% and ROE at 13.2% are moderate, reflecting average efficiency.
- Debt & Liquidity: Debt-to-equity ratio of 0.02 indicates a nearly debt-free balance sheet.
- Cash Flow: No dividend yield, suggesting reinvestment but limited direct shareholder returns.
💹 Valuation
- P/E Ratio: 59.6 vs Industry PE of 27.6 — significantly overvalued.
- P/B Ratio: Current price ₹481 vs Book Value ₹151 — ~3.2x book value, moderately expensive.
- PEG Ratio: 1.74 — indicates fair valuation relative to growth.
- Intrinsic Value: Current price is above fair value, offering limited margin of safety.
🏢 Business Model & Competitive Advantage
- Pharmaceutical manufacturing with strong domestic presence.
- Low debt enhances resilience and financial flexibility.
- Moderate returns suggest limited competitive edge compared to larger peers.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹405 – ₹450, closer to its 52-week low.
- Long-Term Holding: Fundamentals are average, valuations stretched. Suitable for cautious accumulation on dips with long-term horizon.
✅ Positive
- Debt-to-equity ratio of 0.02 ensures financial stability.
- DII holdings increased by 5.13%, showing strong domestic institutional confidence.
- EPS growth reflects improving earnings capacity.
⚠️ Limitation
- High P/E ratio (59.6) compared to industry average.
- ROCE and ROE are moderate, not industry-leading.
- No dividend yield reduces attractiveness for income investors.
📉 Company Negative News
- FII holdings declined by 1.13%, showing reduced foreign investor confidence.
- Quarterly profit variation (-24.7%) indicates volatility in earnings.
📈 Company Positive News
- Quarterly PAT growth from ₹23.5 Cr. to ₹31 Cr. highlights operational improvement.
- DII holdings increased significantly, showing confidence from domestic institutions.
- Stock trading above DMA 50 and near DMA 200 indicates technical support.
🏭 Industry
- Pharmaceutical sector benefits from healthcare demand and government support.
- Industry PE at 27.6 is much lower than company’s valuation, highlighting relative overpricing.
🔎 Conclusion
AKUMS shows moderate fundamentals with low debt and improving earnings, but suffers from high valuations and inconsistent profit trends. While domestic institutions show confidence, foreign investors remain cautious. Best strategy: accumulate cautiously near ₹405–₹450 and hold for long-term gains, but monitor profitability consistency and valuation risks.