⚠ 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.
EMCURE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | EMCURE | Market Cap | 28,964 Cr. | Current Price | 1,532 ₹ | High / Low | 1,586 ₹ |
| Stock P/E | 43.6 | Book Value | 170 ₹ | Dividend Yield | 0.20 % | ROCE | 13.5 % |
| ROE | 11.6 % | Face Value | 10.0 ₹ | DMA 50 | 1,474 ₹ | DMA 200 | 1,400 ₹ |
| Chg in FII Hold | 0.30 % | Chg in DII Hold | 1.74 % | PAT Qtr | 282 Cr. | PAT Prev Qtr | 118 Cr. |
| RSI | 56.1 | MACD | 8.34 | Volume | 1,32,657 | Avg Vol 1Wk | 2,23,836 |
| Low price | 889 ₹ | High price | 1,586 ₹ | PEG Ratio | -3.22 | Debt to equity | 0.50 |
| 52w Index | 92.3 % | Qtr Profit Var | 462 % | EPS | 33.7 ₹ | Industry PE | 27.6 |
📊 Core Financials
- Revenue growth: Strong, PAT surged to 282 Cr. from 118 Cr.
- Profit margins: EPS at 33.7 ₹, ROE 11.6%, ROCE 13.5% — moderate efficiency
- Debt ratios: Debt-to-equity at 0.50, higher than peers, indicates leverage risk
- Cash flows: Profitability supports cash generation, but debt may pressure liquidity
- Return metrics: ROE and ROCE below industry averages
💹 Valuation Indicators
- P/E Ratio: 43.6, above industry PE of 27.6, reflects premium valuation
- P/B Ratio: ~9.0 (1,532 ₹ / 170 ₹), high relative to fundamentals
- PEG Ratio: -3.22, distorted due to earnings volatility
- Intrinsic Value: Current price appears overvalued compared to industry norms
🏢 Business Model & Competitive Advantage
- Operates in pharmaceutical sector with diversified product portfolio
- Competitive advantage through R&D capabilities and domestic market presence
- Industry demand supported by healthcare expansion and global pharma growth
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 1,400–1,450 ₹ range
- Long-Term Holding: Cautious recommendation; strong revenue growth but high valuation and leverage risk
✅ Positive
- PAT growth of 462% quarter-on-quarter shows strong momentum
- FII holding increased (+0.30%), DII holding also up (+1.74%)
- Dividend yield at 0.20% provides shareholder returns
⚠️ Limitation
- High debt-to-equity ratio (0.50) compared to peers
- P/E ratio (43.6) above industry average, reflects premium valuation
- ROE and ROCE below industry benchmarks
📰 Company Negative News
- High leverage may pressure financial flexibility
- Valuation stretched compared to industry peers
🌟 Company Positive News
- PAT surged to 282 Cr. from 118 Cr.
- Strong institutional support with FII and DII increases
- Stock trading above DMA 50 (1,474 ₹) and DMA 200 (1,400 ₹), showing positive momentum
🏭 Industry
- Pharma industry PE at 27.6, EMCURE trades at a premium
- Sector benefits from global healthcare demand and innovation-driven growth
🔎 Conclusion
- EMCURE shows strong revenue growth and profitability momentum
- Valuation is stretched with high debt levels and moderate efficiency metrics
- Suitable for long-term holding only at lower entry levels (1,400–1,450 ₹) with cautious optimism