⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
COHANCE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | COHANCE | Market Cap | 11,730 Cr. | Current Price | 306 ₹ | High / Low | 1,250 ₹ |
| Stock P/E | 34.7 | Book Value | 115 ₹ | Dividend Yield | 0.00 % | ROCE | 16.0 % |
| ROE | 12.5 % | Face Value | 1.00 ₹ | DMA 50 | 366 ₹ | DMA 200 | 645 ₹ |
| Chg in FII Hold | -0.50 % | Chg in DII Hold | 0.76 % | PAT Qtr | 50.8 Cr. | PAT Prev Qtr | 94.3 Cr. |
| RSI | 43.2 | MACD | -17.3 | Volume | 5,44,590 | Avg Vol 1Wk | 8,78,332 |
| Low price | 267 ₹ | High price | 1,250 ₹ | PEG Ratio | -1.68 | Debt to equity | 0.05 |
| 52w Index | 4.03 % | Qtr Profit Var | -67.0 % | EPS | 9.90 ₹ | Industry PE | 27.6 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT fell sharply from 94.3 Cr. to 50.8 Cr., showing significant weakness. EPS at 9.90 ₹ is modest relative to valuation.
- Margins & Returns: ROE at 12.5% and ROCE at 16.0% are moderate, reflecting average efficiency.
- Debt Profile: Debt-to-equity ratio of 0.05 indicates negligible leverage, ensuring financial stability.
- Cash Flow: Dividend yield at 0.00% shows no direct shareholder returns despite profitability.
💹 Valuation Indicators
- P/E Ratio: 34.7 vs Industry PE of 27.6 → trading at a premium valuation.
- P/B Ratio: Current Price 306 ₹ vs Book Value 115 ₹ → P/B ~2.66, moderately expensive.
- PEG Ratio: -1.68 → distorted due to earnings decline, limiting valuation clarity.
- Intrinsic Value: Trading above intrinsic value, suggesting limited upside.
🏢 Business Model & Competitive Advantage
- Cohance Lifesciences operates in pharmaceuticals and specialty chemicals, focusing on APIs and intermediates.
- Competitive advantage lies in niche product offerings and diversified portfolio, though profitability is under pressure.
- Low leverage provides resilience, but earnings volatility is a concern.
📈 Technical & Entry Zone
- Stock trading at 306 ₹, below 50 DMA (366 ₹) and 200 DMA (645 ₹), showing bearish momentum.
- RSI at 43.2 indicates neutral-to-oversold momentum; MACD negative suggests continued weakness.
- Entry Zone: Attractive between 290–305 ₹ for cautious accumulation, with long-term holding potential.
✅ Positive
- Low debt-to-equity ratio (0.05) ensures financial stability.
- Increase in DII holdings (+0.76%) signals domestic institutional confidence.
- Moderate ROE (12.5%) and ROCE (16.0%) provide some efficiency support.
⚠️ Limitation
- High P/E (34.7) compared to industry PE (27.6) indicates premium valuation.
- Quarterly PAT decline (-67%) highlights earnings volatility.
- No dividend yield, limiting shareholder returns.
📉 Company Negative News
- No major recent negative news, but sharp profit decline and reduced FII holdings (-0.50%) raise caution.
📈 Company Positive News
- Increase in DII holdings (+0.76%) shows confidence from domestic institutions.
- Debt-free status provides resilience in volatile markets.
🏭 Industry
- Pharmaceutical and specialty chemicals sector benefits from global demand for APIs and intermediates.
- Industry PE at 27.6 indicates moderate valuations compared to COHANCE’s premium.
- Competition from global and domestic pharma players remains a challenge.
🔮 Conclusion
- COHANCE shows moderate fundamentals with low leverage and niche strengths but faces valuation concerns and earnings volatility.
- Valuation is stretched, limiting near-term upside, though long-term demand for APIs supports growth.
- Recommendation: Accumulate cautiously in the 290–305 ₹ range for long-term holding, focusing on pharmaceutical demand and specialty chemical growth.