ALIVUS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:14 pm

Fundamental Rating: 4.0

📊 Core Financials:

- Profitability: PAT improved from 122 Cr. to 130 Cr. (+36.4% QoQ), showing strong growth momentum.

- Margins: ROCE at 24.9% and ROE at 18.7% highlight solid efficiency and profitability.

- Debt: Debt-to-equity at 0.02 → virtually debt-free, strong financial discipline.

- EPS: 43.3 ₹, healthy earnings supporting valuation.

💹 Valuation Indicators:

- P/E: 20.8 vs Industry PE of 30.6 → undervalued compared to peers.

- P/B: 901 ₹ / 246 ₹ ≈ 3.66, trading at a premium to book value.

- PEG Ratio: 4.42 → indicates overvaluation relative to growth.

- Intrinsic Value: Estimated fair value ~850–880 ₹, suggesting current price is fairly valued with limited upside.

🏢 Business Model & Competitive Advantage:

Alivus operates in pharmaceuticals and healthcare, focusing on formulations and specialty products. Competitive advantage lies in strong ROCE, efficient operations, and a debt-free balance sheet. Its diversified portfolio and consistent profitability provide resilience in a competitive industry.

📈 Entry Zone & Long-Term Guidance:

- Entry Zone: Attractive accumulation range between 850–880 ₹.

- Long-Term Holding: Strong fundamentals, debt-free status, and sector tailwinds make Alivus a solid long-term investment, though PEG ratio suggests growth expectations are priced in.

Positive

• High ROCE (24.9%) and ROE (18.7%) indicate strong profitability and efficiency.
• Debt-to-equity at 0.02 → virtually debt-free.
• P/E ratio (20.8) below industry average (30.6), suggesting undervaluation.
• Quarterly PAT growth (+36.4%) shows strong operational performance.

Limitation

• PEG ratio of 4.42 indicates overvaluation relative to growth.
• P/B ratio of 3.66 reflects premium valuation.
• DII holdings decreased (-0.15%), showing reduced domestic institutional support.
• MACD (-3.53) indicates weak technical momentum.

Company Negative News

• Premium valuation on book value despite moderate growth.
• DII holdings reduced, showing slight domestic investor caution.
• Technical indicators (MACD negative) reflect short-term weakness.

Company Positive News

• Quarterly PAT growth (+36.4%) shows strong earnings momentum.
• FII holdings increased (+0.42%), showing foreign investor confidence.
• Debt-free balance sheet enhances financial stability.

Industry

• Pharmaceutical sector supported by global demand for generics and specialty drugs.
• Industry PE at 30.6 indicates moderate valuation compared to Alivus’ lower P/E.
• Sector growth driven by exports, healthcare demand, and R&D investments.

Conclusion

⚖️ Alivus demonstrates strong fundamentals with high ROCE, ROE, and debt-free status. While PEG ratio suggests growth expectations are priced in, the stock trades at a discount to industry P/E, making it attractive for long-term investors. Accumulation near 850–880 ₹ is recommended for value-conscious entry, with potential for steady compounding returns in the pharmaceutical sector.