COHANCE - Fundamental Analysis

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

📊 Fundamental Analysis: Cohance Lifesciences Ltd (COHANCE) Fundamental Rating: 3.2

💡 Core Financials Breakdown

Profit Metrics

PAT fell from ₹82.9 Cr to ₹38.7 Cr ➜ Quarterly decline of 27.4%

EPS: ₹10.5 ➜ modest earnings profile

Returns

ROE: 14.1% | ROCE: 16.8% ➜ fair but not standout capital efficiency

Debt & Dividend

Debt-to-equity: 0.16 ➜ low-leverage structure — financially prudent

Dividend Yield: 0.00% ➜ no passive income — purely growth-focused

💸 Valuation Indicators

Metric Value Commentary

P/E Ratio 146 Extremely steep — far above industry average

P/B Ratio ~15.2 (₹1,012 / ₹66.6) ➜ very rich valuation

PEG Ratio -11.2 Negative PEG due to earnings decline ➜ caution

📉 Takeaway: Highly overvalued — Price multiples signal inflated optimism without matching growth.

🧬 Business Model & Competitive Insight

Active in API manufacturing, contract development, and formulations

Plays in the pharma CDMO (Contract Development & Manufacturing) space with export exposure

Competitive factors

Clean balance sheet

Global compliance standards

Ability to scale via backward integration

📊 Institutional Sentiment

FII ↓ 3.82% and DII ↓ 5.20% ➜ heavy selling pressure across both fronts

📉 Technical Outlook

RSI: 46.1 ➜ neutral zone — not oversold, not overbought

MACD: +2.33 ➜ mild bullish crossover — momentum could build

Price below both DMA50 and DMA200 ➜ short-term weakness dominant

✅ Suggested Entry Zone: ₹900–₹950 ⚠️ Entry only if valuation moderates or earnings rebound is evident

📅 Long-Term Holding Strategy

Cohance may suit investors who

Believe in India’s CDMO growth wave

Seek small-cap pharma exposure with expansion potential

Can handle valuation risk in exchange for innovation prospects

📌 That said, the valuation far exceeds sector norms. Investors should track earnings recovery and margin expansion before increasing allocation.

Would you like me to stack COHANCE against names like Divi’s Labs or Syngene to see how it fares among CDMO players? I’ll build a custom comparison if you’re game.

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