COHANCE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.4

📈 Positive

• 💰 Low debt-to-equity ratio of 0.04 ensures financial stability and minimal leverage risk.
• 📊 ROCE of 16.0% and ROE of 12.5% reflect decent capital efficiency.
• 📈 DII holding increased by 9.41%, showing strong domestic institutional confidence.
• 📉 Trading near 52-week low (₹749), offering potential value entry point.

⚠️ Limitation

• 📉 Very high P/E of 81.6 vs industry average of 33.1 suggests significant overvaluation.
• 📉 Negative PEG ratio (-3.96) implies valuation is not supported by earnings growth.
• 📉 Quarterly PAT dropped from ₹134 Cr. to ₹58.6 Cr., indicating margin pressure.
• 📉 RSI at 29.3 and MACD at -23.8 reflect bearish technical momentum.
• 📉 Trading below DMA50 and DMA200 (₹901 and ₹987), confirming downward trend.

📰 Company Negative News

• 📉 FII holding declined by 0.72%, indicating reduced foreign investor interest.
• 📉 52-week performance flat (0.64%), showing lack of price appreciation.

🌟 Company Positive News

• 📈 Strong DII accumulation suggests long-term confidence despite short-term volatility.
• 📈 Volume remains healthy despite recent price correction, indicating continued investor engagement.

🧬 Industry

• 🧬 COHANCE operates in the life sciences and pharma services sector, benefiting from global outsourcing and innovation demand.
• 📊 Industry P/E of 33.1 reflects moderate growth expectations and premium valuations for niche players.

🧭 Conclusion

• 📌 Suggested entry zone: ₹740–₹760, near support and 52-week low for better margin of safety.
• 🕰️ Long-term holding cautious due to valuation concerns and recent earnings decline.
• ⚖️ Monitor profit recovery and technical reversal before aggressive accumulation.