ASTRAZEN - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.9

Here’s a detailed breakdown of ASTRAZEN’s fundamentals, valuation, and long-term potential 💡📈

🧾 Core Financials Review

Profit Growth

Quarterly PAT surged from ₹54.7 Cr. to ₹62.3 Cr., marking a solid 57.7% quarterly variation—a strong earnings momentum.

EPS of ₹46.3 reflects decent earnings strength for its price band.

Return Metrics

ROCE: 33.4% and ROE: 23.6% — well above average, signaling efficient capital deployment.

Debt to Equity: Just 0.05, confirming a low-risk capital structure.

Liquidity & Leverage

Minimal debt combined with rising profits suggests reliable internal cash generation, though cash flow data isn't directly provided.

📊 Valuation Indicators

Metric Value Meaning

P/E Ratio 127 Extremely high vs. industry PE of 32; indicates overvaluation

P/B Ratio ~28.89 Strong premium; not favorable for value investors

PEG Ratio 2.94 Highly stretched valuation vs. growth

Dividend Yield 0.36% Low; not attractive for income investors

Intrinsic Value Estimated < ₹7,000 Premium valuation outweighs intrinsic fundamentals

🔍 Overall, the stock trades at a significant premium—likely driven by brand strength or sector confidence.

🧬 Business Model & Competitive Moat

Operates in healthcare/pharmaceuticals—a resilient, evergreen sector.

Strong IP and product pipeline advantages, plus deep institutional recognition.

Likely benefits from global affiliations and R&D investments, enhancing defensibility.

🔁 Technical Analysis & Entry Zone

DMA 50: ₹8,995 vs. Current Price ₹8,894 — price hovering near short-term average.

DMA 200: ₹8,043 — technically bullish over medium term.

RSI at 44.9 indicates neutral zone—neither oversold nor overbought.

MACD negative and volume trending below average, hinting at short-term weakness.

🎯 Entry Zone Suggestion

Consider accumulation below ₹8,300, preferably closer to ₹7,500–₹7,800 if correction occurs.

📅 Long-Term Holding Outlook

Solid returns, negligible debt, and pharma sector tailwinds support a buy-on-dips strategy.

⚠️ Valuation is a concern—may result in muted short-term returns.

✅ Long-term hold (>5 years) is viable if accumulated at lower levels.

Would you like a peer comparison with other pharma stocks like Dr. Reddy’s or Cipla? I can whip that up too 📌

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