APLLTD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | APLLTD | Market Cap | 14,841 Cr. | Current Price | 755 ₹ | High / Low | 1,108 ₹ |
| Stock P/E | 29.2 | Book Value | 267 ₹ | Dividend Yield | 1.46 % | ROCE | 11.3 % |
| ROE | 9.68 % | Face Value | 2.00 ₹ | DMA 50 | 739 ₹ | DMA 200 | 827 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.00 % | PAT Qtr | 149 Cr. | PAT Prev Qtr | 179 Cr. |
| RSI | 56.0 | MACD | 15.1 | Volume | 31,294 | Avg Vol 1Wk | 76,138 |
| Low price | 635 ₹ | High price | 1,108 ₹ | PEG Ratio | -8.86 | Debt to equity | 0.27 |
| 52w Index | 25.3 % | Qtr Profit Var | 74.0 % | EPS | 24.0 ₹ | Industry PE | 30.1 |
📊 Financials: APLLTD shows moderate fundamentals with ROE at 9.68% and ROCE at 11.3%, both below sector leaders. Debt-to-equity ratio of 0.27 is manageable. EPS of ₹24.0 reflects decent earnings power, though quarterly PAT declined from ₹179 Cr. to ₹149 Cr., signaling earnings pressure.
💹 Valuation: Current P/E of 29.2 is aligned with industry average (30.1), suggesting fair valuation. PEG ratio of -8.86 highlights weak growth prospects. P/B ratio (~2.8) is reasonable compared to book value ₹267, offering some intrinsic value comfort.
🏢 Business Model: APLLTD operates in pharmaceuticals, benefiting from long-term demand and innovation-driven growth. Competitive advantage lies in product portfolio and sector positioning. However, declining profitability and weak return metrics limit attractiveness.
📈 Entry Zone: Ideal entry near ₹700–740, close to DMA 50 (₹739) and below current price ₹755. This range offers better valuation comfort and aligns with technical support.
📌 Long-Term Holding: Suitable for medium-term investors (2–3 years). Long-term holding beyond 3 years should be reconsidered unless ROE/ROCE improve and earnings stabilize.
Positive
- Dividend yield of 1.46% provides shareholder returns
- P/E (29.2) aligned with industry average (30.1)
- EPS of ₹24.0 supports earnings consistency
- FII holdings increased slightly (+0.03%)
Limitation
- Weak ROE (9.68%) and ROCE (11.3%)
- Negative PEG ratio (-8.86) signals poor growth outlook
- Quarterly PAT decline (₹149 Cr. vs ₹179 Cr.)
- DII holdings flat (0.00%), showing limited domestic confidence
Company Negative News
- No major negative news reported, but profit decline raises concerns
Company Positive News
- Dividend yield supports shareholder value
- Valuation metrics aligned with industry average
Industry
- Industry P/E at 30.1 reflects moderate sector valuation
- Pharmaceutical sector benefits from long-term demand and innovation-driven growth
Conclusion
APLLTD is moderately attractive with fair valuation and dividend support, but weak ROE/ROCE and negative PEG ratio limit long-term appeal. Entry is recommended around ₹700–740 for better margin of safety. For existing holders, a medium-term horizon (2–3 years) with partial exits near ₹950–1,000 is advisable. Long-term holding should be reconsidered unless profitability metrics improve.