ALIVUS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | ALIVUS | Market Cap | 10,696 Cr. | Current Price | 871 ₹ | High / Low | 1,260 ₹ |
| Stock P/E | 20.2 | Book Value | 246 ₹ | Dividend Yield | 0.58 % | ROCE | 24.9 % |
| ROE | 18.7 % | Face Value | 2.00 ₹ | DMA 50 | 904 ₹ | DMA 200 | 953 ₹ |
| Chg in FII Hold | 0.42 % | Chg in DII Hold | -0.15 % | PAT Qtr | 130 Cr. | PAT Prev Qtr | 122 Cr. |
| RSI | 44.5 | MACD | -4.06 | Volume | 41,748 | Avg Vol 1Wk | 51,048 |
| Low price | 827 ₹ | High price | 1,260 ₹ | PEG Ratio | 4.28 | Debt to equity | 0.02 |
| 52w Index | 10.1 % | Qtr Profit Var | 36.4 % | EPS | 43.3 ₹ | Industry PE | 30.0 |
📊 Financials: ALIVUS has a market cap of ₹10,696 Cr. with strong return metrics — ROCE at 24.9% and ROE at 18.7%, reflecting efficient capital utilization. Debt-to-equity ratio is very low at 0.02, indicating a nearly debt-free balance sheet. Quarterly PAT improved to 130 Cr. from 122 Cr., showing healthy earnings growth (+36.4% YoY). Dividend yield of 0.58% provides modest shareholder returns.
💹 Valuation: Current P/E of 20.2 is below the industry average of 30.0, suggesting undervaluation. P/B ratio is ~3.54 (871/246), reflecting fair pricing relative to book value. PEG ratio of 4.28 indicates valuation is stretched compared to growth prospects. Intrinsic value analysis suggests the stock is trading near its lower band, offering potential entry opportunities.
🏗️ Business Model: ALIVUS operates in pharmaceuticals, focusing on formulations and specialty products. Its competitive advantage lies in strong R&D, diversified product portfolio, and efficient operations. The company benefits from consistent demand in healthcare markets and its lean balance sheet enhances financial resilience.
📈 Entry Zone: With RSI at 44.5 (neutral) and price at ₹871, the stock is trading below DMA 50 (904) and DMA 200 (953), indicating weak momentum. A favorable entry zone would be ₹830–₹870 for accumulation. Long-term investors may benefit from holding, given strong fundamentals and industry tailwinds.
Positive
- 📌 Strong ROCE (24.9%) and ROE (18.7%), reflecting efficient capital use.
- 📌 Debt-free structure (Debt-to-equity 0.02).
- 📌 Quarterly PAT growth (+36.4%) showing earnings momentum.
Limitation
- ⚠️ PEG ratio of 4.28 suggests valuation is stretched relative to growth.
- ⚠️ Stock trades below DMA 50 and DMA 200, showing weak technical momentum.
- ⚠️ Dividend yield of 0.58% is modest compared to peers.
Company Negative News
- 📉 Decline in DII holdings (-0.15%), showing reduced domestic institutional confidence.
- 📉 Weak technical indicators (MACD negative, price below moving averages).
Company Positive News
- 🚀 Increase in FII holdings (+0.42%), reflecting foreign investor confidence.
- 🚀 PAT growth from 122 Cr. to 130 Cr. quarter-on-quarter.
Industry
- 💊 Pharmaceutical industry supported by global demand for generics and specialty drugs.
- 💊 Industry P/E at 30.0, higher than ALIVUS’ 20.2, suggesting undervaluation relative to peers.
Conclusion
✅ ALIVUS is a fundamentally strong pharmaceutical company with excellent return ratios, debt-free balance sheet, and improving profitability. Despite stretched PEG valuation and weak technical momentum, long-term prospects remain positive. Entry around ₹830–₹870 is recommended for investors with a 3–5 year horizon.