AKUMS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.9

Here’s a detailed breakdown of AKUMS

🧾 Core Financials

Profitability & Growth

PAT improved from ₹27.6 Cr to ₹44.9 Cr — a solid quarterly jump, with 7.14% YoY growth.

EPS: ₹10.4 — decent for its market cap.

ROE: 13.2% and ROCE: 16.2% — healthy return metrics, indicating efficient capital use.

Debt & Liquidity

Debt-to-equity: 0.02 — virtually debt-free, a major strength.

Dividend Yield: 0.00% — reinvestment-focused, typical for growth-stage pharma firms.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 45.6 33.4 Slightly overvalued

P/B Ratio ~3.25 ~3.5 Fairly valued on book basis

PEG Ratio 1.33 ~1 Slight premium to growth

Intrinsic Value ~₹420–₹450 — Slightly overvalued

The valuation is moderately stretched, but supported by improving earnings and strong balance sheet.

🏢 Business Model & Competitive Edge

Core Operations: Pharmaceutical manufacturing and contract development.

Strengths

Strong presence in CDMO (Contract Development and Manufacturing Organization) space.

Scalable operations with low debt and improving profitability.

Risks

FII outflows (-1.53%) suggest foreign caution.

Limited dividend and high volatility (52w Index: 13.1%) may deter conservative investors.

📉 Technical & Entry Zone

Current Price: ₹475

DMA 50/200: ₹494 / ₹561 — trading below long-term average.

RSI: 47.9 — neutral zone.

MACD: -7.36 — bearish crossover.

Suggested Entry Zone: ₹420–₹450 range, ideally near 52-week low of ₹405 or intrinsic value.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for exposure to India’s pharma manufacturing boom.

Good for fresh entry on dips below ₹450.

Ideal for long-term only if

PAT growth sustains above 15% CAGR.

ROE improves above 15% and PEG drops below 1.

Would you like a peer comparison with Suven Pharma or a breakdown of AKUMS’ CDMO client portfolio?

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