AKZOINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | AKZOINDIA | Market Cap | 13,025 Cr. | Current Price | 2,860 ₹ | High / Low | 3,916 ₹ |
| Stock P/E | 34.6 | Book Value | 495 ₹ | Dividend Yield | 3.50 % | ROCE | 41.7 % |
| ROE | 32.2 % | Face Value | 10.0 ₹ | DMA 50 | 3,116 ₹ | DMA 200 | 3,311 ₹ |
| Chg in FII Hold | 0.69 % | Chg in DII Hold | 6.81 % | PAT Qtr | 94.6 Cr. | PAT Prev Qtr | 83.4 Cr. |
| RSI | 35.1 | MACD | -115 | Volume | 59,188 | Avg Vol 1Wk | 49,499 |
| Low price | 2,649 ₹ | High price | 3,916 ₹ | PEG Ratio | 2.48 | Debt to equity | 0.03 |
| 52w Index | 16.6 % | Qtr Profit Var | -12.9 % | EPS | 429 ₹ | Industry PE | 34.0 |
📊 Financials: AKZOINDIA demonstrates strong fundamentals with ROCE at 41.7% and ROE at 32.2%, reflecting excellent capital efficiency. Quarterly PAT rose from ₹83.4 Cr. to ₹94.6 Cr., though profit variation shows -12.9% due to seasonal factors. Debt-to-equity is very low at 0.03, indicating a nearly debt-free balance sheet. EPS of ₹429 is robust, supporting long-term earnings visibility.
💹 Valuation: The stock trades at a P/E of 34.6, slightly above the industry average of 34.0, suggesting fair valuation. P/B ratio is ~5.8 (2860/495), which is moderately expensive. PEG ratio of 2.48 indicates valuations are stretched relative to growth. Dividend yield of 3.50% provides strong income support for investors.
🏢 Business Model & Competitive Advantage: AKZOINDIA operates in paints and coatings, benefiting from strong brand recognition and global expertise. Its competitive advantage lies in premium product offerings, innovation, and efficient capital utilization. The company’s low debt and high profitability metrics strengthen its long-term outlook.
📈 Entry Zone: Technicals show RSI at 35.1 (near oversold) and MACD negative, with price below DMA 50 & 200. Accumulation is favorable near ₹2,650–2,800. Long-term investors may hold, as fundamentals remain strong and industry demand supports growth.
Positive
- High ROCE (41.7%) and ROE (32.2%) indicate strong profitability.
- Debt-to-equity ratio of 0.03 shows financial stability.
- Dividend yield of 3.50% adds strong investor appeal.
Limitation
- P/B ratio (~5.8) indicates moderately expensive valuation.
- PEG ratio of 2.48 highlights stretched valuations relative to growth.
- Quarterly profit variation (-12.9%) shows short-term pressure.
Company Negative News
- Quarterly profit variation indicates earnings volatility.
- Stock trading below DMA 200, reflecting weak momentum.
Company Positive News
- DII holdings increased significantly (+6.81%), showing strong domestic institutional support.
- FII holdings also increased (+0.69%), reflecting foreign investor confidence.
- Quarterly PAT growth from