EMCURE - Fundamental Analysis: Financial Health & Valuation

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

Fundamental Rating: 3.7

📈 Positive

• 📊 Strong return metrics — ROCE at 13.5% and ROE at 11.6% indicate decent capital efficiency.
• 💰 Low debt-to-equity ratio of 0.28 reflects a healthy balance sheet and manageable leverage.
• 📈 EPS of ₹21.1 supports consistent earnings visibility.
• 📈 DII holding increased by 1.52%, showing strong domestic institutional confidence.
• 📈 Quarterly profit variation of 210% suggests a sharp rebound in earnings performance.

⚠️ Limitation

• 📉 High P/E of 62.3 vs industry average of 33.1 suggests premium valuation.
• 📉 Negative PEG ratio (-4.60) implies valuation is not supported by sustainable growth.
• 📉 Dividend yield of 0.22% offers minimal passive income.
• 📉 MACD at -4.81 and RSI at 46.0 reflect weak technical momentum.
• 📉 Trading below DMA50 and near DMA200 (₹1,360 and ₹1,310), indicating short-term consolidation.

📰 Company Negative News

• 📉 Volume below 1-week average may reflect reduced investor interest or caution.
• 📉 Stock down from 52-week high (₹1,525), indicating recent correction.

🌟 Company Positive News

• 📈 FII holding increased by 0.43%, showing renewed foreign investor interest.
• 📈 Trading near 52-week low (₹889), offering a potential value entry point.

💊 Industry

• 💊 EMCURE operates in the pharmaceutical sector, with a diversified portfolio across generics, APIs, and specialty drugs.
• 📊 Industry P/E of 33.1 reflects moderate growth expectations and regulatory exposure.

🧭 Conclusion

• 📌 Suggested entry zone: ₹1,280–₹1,310, near DMA200 and support levels for better margin of safety.
• 🕰️ Long-term holding cautiously favorable due to sector strength and institutional interest, but valuation remains a concern.
• ⚖️ Monitor earnings consistency and technical indicators before aggressive accumulation.