⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ASTRAZEN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.3
| Stock Code | ASTRAZEN | Market Cap | 21,250 Cr. | Current Price | 8,496 ₹ | High / Low | 10,691 ₹ |
| Stock P/E | 102 | Book Value | 320 ₹ | Dividend Yield | 0.38 % | ROCE | 33.4 % |
| ROE | 23.6 % | Face Value | 2.00 ₹ | DMA 50 | 8,706 ₹ | DMA 200 | 8,663 ₹ |
| Chg in FII Hold | -0.03 % | Chg in DII Hold | 0.29 % | PAT Qtr | 31.6 Cr. | PAT Prev Qtr | 58.1 Cr. |
| RSI | 41.1 | MACD | -70.4 | Volume | 4,062 | Avg Vol 1Wk | 5,522 |
| Low price | 6,502 ₹ | High price | 10,691 ₹ | PEG Ratio | 2.36 | Debt to equity | 0.04 |
| 52w Index | 47.6 % | Qtr Profit Var | -42.3 % | EPS | 80.4 ₹ | Industry PE | 27.6 |
📊 Financial Overview
- Revenue & Profitability: PAT dropped from 58.1 Cr. to 31.6 Cr. (-42.3% QoQ), showing declining profitability.
- Margins & Returns: Strong ROCE (33.4%) and ROE (23.6%) indicate efficient capital use.
- Debt: Very low debt-to-equity ratio (0.04), signaling financial stability.
- Cash Flow: Healthy balance sheet with minimal leverage.
💹 Valuation Metrics
- P/E Ratio: 102 vs Industry PE of 27.6 → Highly overvalued.
- P/B Ratio: Current Price ₹8,496 vs Book Value ₹320 → Extremely stretched.
- PEG Ratio: 2.36 → Indicates poor valuation relative to growth.
- Intrinsic Value: Current price far above fair value zone.
🏢 Business Model & Competitive Advantage
- Strong industry presence with efficient capital allocation.
- High ROCE and ROE suggest operational strength.
- However, earnings volatility and weak profit growth undermine sustainability.
📈 Entry Zone Recommendation
- Technicals: RSI at 41.1 (near oversold), MACD negative, price below 50DMA & 200DMA.
- Suggested entry zone: ₹6,500–₹7,200 if valuation cools down.
- Long-term holding only if earnings stabilize and valuation aligns closer to industry averages.
✅ Positive
- Strong ROCE and ROE.
- Low debt-to-equity ratio.
- Stable industry positioning.
⚠️ Limitation
- High P/E and P/B ratios make it significantly overvalued.
- Weak quarterly profit growth (-42.3%).
- Low dividend yield (0.38%).
📉 Company Negative News
- Sharp decline in quarterly profits.
- FII holding reduced (-0.03%).
📈 Company Positive News
- DII holding increased (+0.29%).
- Strong return ratios despite profit decline.
🏭 Industry
- Industry PE at 27.6, much lower than company’s 102.
- Sector growth stable, but company valuation far exceeds peers.
🔎 Conclusion
- Astrazen shows strong fundamentals in capital efficiency but is trading at unsustainable valuations.
- Profit decline raises concerns about earnings consistency.
- Best strategy: Wait for correction towards ₹6,500–₹7,200 before entry.
- Long-term holding viable only if earnings growth resumes and valuation normalizes.