ASTRAZEN - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.0

📊 Core Financials Breakdown

Profitability

ROE of 23.6% and ROCE of 33.4% are excellent, reflecting strong operational efficiency and capital utilization.

EPS of ₹73.3 is robust, and quarterly PAT has shown resilience (₹56.1 Cr vs ₹62.3 Cr), despite a slight dip.

Leverage & Cash Flow

Debt-to-equity ratio of 0.05 — virtually debt-free, a major strength.

Dividend yield of 0.35% is modest, indicating reinvestment focus over income distribution.

Growth

EPS has compounded at 37% annually over the last three years

1

, and EBIT margins have expanded from 10% to 13%

1

— strong indicators of sustainable growth.

📉 Valuation Metrics

Metric Value Commentary

P/E Ratio 107 Extremely high vs. industry average (33.4) — significantly overvalued

P/B Ratio ~29.5 Premium valuation relative to book value ₹308

PEG Ratio 2.48 High — suggests growth is priced in heavily

Intrinsic Value ₹7,200–7,800 Current price of ₹9,090 exceeds fair value zone

🧬 Business Model & Competitive Edge

Sector: AstraZeneca Pharma India operates in specialty and generic drug manufacturing, with a focus on oncology, respiratory, and cardiovascular therapies.

Moat: Strong global parentage, proprietary formulations, and high regulatory compliance.

Insider Alignment: Insiders hold shares worth ₹1,800 Cr, indicating strong confidence in the company’s future

1

.

Ownership Trends: FII holdings slightly increased (+0.14%), while DII holdings dipped (-0.10%) — neutral sentiment.

📈 Technical & Entry Guidance

Current Price: ₹9,090 — above both 50 DMA (₹8,865) and 200 DMA (₹8,241), indicating bullish momentum.

RSI: 57.3 — neutral zone, no immediate overbought risk.

MACD: Strong positive at 94.9 — confirms upward momentum.

Entry Zone: ₹7,500–8,000 offers better value and downside protection.

🕰️ Long-Term Holding Outlook

Strengths: High return metrics, strong EPS growth, low debt, and insider confidence.

Risks: Overvaluation, modest dividend, and potential regulatory headwinds.

Recommendation: Hold if already invested. New investors should wait for a dip near ₹7,800 before accumulating. Long-term outlook remains positive, especially with healthcare innovation and chronic disease demand driving growth.

You can explore deeper insights on Simply Wall St’s analysis of AstraZeneca Pharma India or check long-term price targets and technical levels. Let me know if you'd like a peer comparison with Abbott India or GSK Pharma.

1

simplywall.st

Edit in a page