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AWL - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.1

Last Updated Time : 19 Mar 26, 07:09 pm

Fundamental Rating: 3.1

Stock Code AWL Market Cap 23,032 Cr. Current Price 177 ₹ High / Low 291 ₹
Stock P/E 25.9 Book Value 75.6 ₹ Dividend Yield 0.00 % ROCE 21.0 %
ROE 13.8 % Face Value 1.00 ₹ DMA 50 201 ₹ DMA 200 240 ₹
Chg in FII Hold 7.04 % Chg in DII Hold 0.46 % PAT Qtr 278 Cr. PAT Prev Qtr 229 Cr.
RSI 31.0 MACD -8.72 Volume 72,06,247 Avg Vol 1Wk 55,93,028
Low price 171 ₹ High price 291 ₹ PEG Ratio 1.78 Debt to equity 0.09
52w Index 5.05 % Qtr Profit Var -32.0 % EPS 6.70 ₹ Industry PE 22.0

📊 Core Financials

  • Profitability: PAT rose from ₹229 Cr. to ₹278 Cr., but Qtr Profit Var shows -32% decline YoY
  • Margins: ROCE at 21.0% and ROE at 13.8% indicate healthy efficiency
  • Debt: Very low debt-to-equity ratio (0.09) shows strong financial discipline
  • Cash Flow: EPS at ₹6.70 is modest relative to market cap

💰 Valuation Indicators

  • P/E Ratio: 25.9 vs Industry PE of 22.0 → slightly overvalued
  • P/B Ratio: Current Price ₹177 vs Book Value ₹75.6 → ~2.3x book
  • PEG Ratio: 1.78 → growth priced at a premium
  • Intrinsic Value: Fairly valued but trading at mild premium

🏢 Business Model & Health

  • Market Cap: ₹23,032 Cr. reflects strong presence in FMCG/edible oils
  • Dividend Yield: 0.00% indicates reinvestment focus rather than payouts
  • Competitive Advantage: Established brand in edible oils and consumer goods
  • Overall Health: Strong ROCE, low debt, but profit volatility raises caution

🎯 Entry Zone & Long-Term Guidance

  • Entry Zone: Attractive near ₹160–170 for accumulation
  • Long-Term Holding: Suitable for long-term investors if earnings stabilize and margins improve

✅ Positive

  • Strong ROCE (21.0%) and healthy ROE (13.8%)
  • Low debt-to-equity ratio (0.09)
  • FII holding increased significantly (+7.04%)

⚠️ Limitation

  • P/E ratio (25.9) slightly above industry average
  • No dividend yield (0.00%)
  • Profit volatility with Qtr Profit Var at -32%

📉 Company Negative News

  • Quarterly profit variation shows decline (-32%)
  • Stock trading below DMA levels (50DMA ₹201, 200DMA ₹240)

📈 Company Positive News

  • FII holding increased sharply (+7.04%)
  • DII holding increased (+0.46%)
  • Quarterly PAT improved sequentially to ₹278 Cr.

🏭 Industry

  • Industry PE: 22.0, slightly lower than AWL’s PE
  • FMCG/edible oils sector benefits from steady demand but faces margin pressures

🔎 Conclusion

AWL shows strong efficiency metrics and low debt, supported by rising institutional interest.

However, profit volatility and a slightly stretched valuation compared to industry peers raise caution.

The stock is suitable for long-term investors focused on FMCG growth, with entry recommended near ₹160–170 to balance risk and reward.

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