EMCURE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.0

📊 Core Financials

Earnings & Profitability: EPS of ₹21.1 and PAT of ₹125 Cr this quarter (down from ₹140 Cr) show solid earnings, though sequential softness is visible. ROCE at 13.5% and ROE at 11.6% are moderate, suggesting room for margin expansion.

Debt Profile: Debt-to-equity of 0.28 — manageable leverage, typical for pharma firms investing in R&D and capacity.

Cash Flow: While not explicitly stated, consistent profitability and moderate debt imply stable operating cash flows. Net income (TTM) is ₹744 Cr with revenue of ₹8,181 Cr

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💰 Valuation Indicators

Metric Value Insight

P/E Ratio 63.6 Rich vs. industry PE (33.4), pricing in future growth

P/B Ratio ~8.43 High premium over book value

PEG Ratio –4.69 Negative PEG flags caution on growth expectations

Dividend Yield 0.22% Minimal income play — reinvestment-focused

Valuation is stretched, and the PEG ratio suggests earnings growth may not justify the premium at current levels.

🧪 Business Model & Competitive Advantage

Emcure Pharmaceuticals Ltd. is a vertically integrated pharma company with strengths in

Formulations & APIs: Strong presence in injectables, tablets, and capsules

Global Footprint: Operations in over 70 countries, including regulated markets

Therapeutic Focus: Oncology, cardiology, anti-infectives, and women’s health

The company has a robust product pipeline and is expanding its biosimilars and specialty portfolio. However, its 1-year return is –0.17%, underperforming peers like Wockhardt (+116.7%)

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📈 Technical & Sentiment Indicators

RSI: 39.8 – Near oversold zone, suggesting potential rebound.

MACD: –16.2 – Bearish crossover, indicating short-term weakness.

Volume Dip – Below weekly average, signaling reduced interest.

DMA 50 & 200: Price is hovering near both, indicating consolidation.

The stock is down ~12% from its 52-week high and has underperformed most peers in the sector

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💡 Investment Strategy

🔽 Entry Zone

Ideal Buy Range: ₹1,280–₹1,320, near DMA 200 and RSI support.

Current Price ₹1,349: Slightly above ideal entry — consider partial accumulation or wait for a dip.

🕰️ Long-Term Holding

Hold with Caution or Accumulate on Dips: Strong global footprint and product pipeline make Emcure a promising long-term play, but valuation and recent performance warrant disciplined entry.

Watch Growth Metrics & Institutional Sentiment: FII and DII outflows suggest short-term caution. Monitor quarterly results and regulatory updates.

You can explore Emcure’s full financial dashboard and peer comparison or review its valuation and dividend history for deeper insights. Let me know if you'd like a peer comparison with Ajanta Pharma or Gland Pharma.

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