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APLLTD - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.7

Last Updated Time : 25 May 26, 12:02 am

Fundamental Rating: 3.7

Stock Code APLLTD Market Cap 14,873 Cr. Current Price 755 ₹ High / Low 1,108 ₹
Stock P/E 21.4 Book Value 286 ₹ Dividend Yield 1.46 % ROCE 12.2 %
ROE 12.9 % Face Value 2.00 ₹ DMA 50 751 ₹ DMA 200 818 ₹
Chg in FII Hold 0.03 % Chg in DII Hold 0.00 % PAT Qtr 263 Cr. PAT Prev Qtr 149 Cr.
RSI 50.3 MACD 4.16 Volume 1,99,536 Avg Vol 1Wk 1,93,765
Low price 635 ₹ High price 1,108 ₹ PEG Ratio 0.82 Debt to equity 0.21
52w Index 25.4 % Qtr Profit Var 249 % EPS 32.6 ₹ Industry PE 30.5

📊 Financial Overview:

APLLTD shows moderate financial strength with quarterly PAT rising from ₹149 Cr. to ₹263 Cr., reflecting strong profit growth. ROCE at 12.2% and ROE at 12.9% are decent but not industry-leading. Debt-to-equity at 0.21 is manageable, ensuring stability. EPS stands at ₹32.6, supported by improved profitability. Cash flows appear healthy given rising earnings momentum.

💹 Valuation Indicators:

The stock trades at a P/E of 21.4, below the industry average of 30.5, suggesting reasonable valuation. P/B ratio is ~2.6 (755 ÷ 286), which is fair. PEG ratio of 0.82 indicates the stock is attractively valued relative to growth prospects. Dividend yield of 1.46% adds investor appeal. Intrinsic value appears close to current price, making it fairly valued.

🏢 Business Model & Advantage:

APLLTD operates in pharmaceuticals, benefiting from India’s healthcare demand and global generics market. Its competitive advantage lies in diversified product offerings and improving profitability. Institutional sentiment is stable, with FIIs slightly increasing holdings (+0.03%) and DIIs unchanged.

📈 Entry Zone:

Technically, support lies near ₹751 (50 DMA) and ₹818 (200 DMA). A favorable entry zone would be between ₹740–₹770 if the stock consolidates. Long-term investors may hold given improving fundamentals and reasonable valuation.


Positive

  • 📌 Strong quarterly PAT growth (₹263 Cr. vs ₹149 Cr.).
  • 📌 Reasonable P/E (21.4) compared to industry average (30.5).
  • 📌 Healthy dividend yield (1.46%).
  • 📌 Manageable debt-to-equity (0.21).

Limitation

  • ⚠️ ROCE (12.2%) and ROE (12.9%) are moderate, not industry-leading.
  • ⚠️ P/B ratio (~2.6) is slightly elevated.
  • ⚠️ Institutional flows remain flat, showing limited conviction.

Company Negative News

  • 📰 No major negative news reported, though efficiency ratios remain modest.

Company Positive News

  • 📰 Quarterly profits surged significantly, boosting investor sentiment.
  • 📰 Dividend yield adds attractiveness for long-term investors.

Industry

  • 🌐 Pharmaceutical industry continues to expand with rising healthcare demand.
  • 🌐 Industry P/E at 30.5 reflects growth potential, while APLLTD trades at a discount.

Conclusion

✅ APLLTD is financially stable with strong profit growth, reasonable valuation, and a healthy dividend yield. While ROCE and ROE are moderate, the stock offers fair value compared to industry peers. Entry is advisable near ₹740–₹770, with long-term holding supported by improving fundamentals and sector growth.

For deeper insights, you could explore a peer comparison or a pharma sector outlook to complement this analysis.

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