EMCURE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | EMCURE | Market Cap | 32,311 Cr. | Current Price | 1,704 ₹ | High / Low | 1,830 ₹ |
| Stock P/E | 43.1 | Book Value | 196 ₹ | Dividend Yield | 0.17 % | ROCE | 23.7 % |
| ROE | 22.3 % | Face Value | 10.0 ₹ | DMA 50 | 1,620 ₹ | DMA 200 | 1,479 ₹ |
| Chg in FII Hold | -0.24 % | Chg in DII Hold | 0.00 % | PAT Qtr | 228 Cr. | PAT Prev Qtr | 282 Cr. |
| RSI | 61.4 | MACD | 31.8 | Volume | 78,807 | Avg Vol 1Wk | 1,11,861 |
| Low price | 1,201 ₹ | High price | 1,830 ₹ | PEG Ratio | 0.65 | Debt to equity | 0.43 |
| 52w Index | 80.0 % | Qtr Profit Var | 63.4 % | EPS | 38.7 ₹ | Industry PE | 30.5 |
📊 Financials: EMCURE demonstrates strong fundamentals. Quarterly PAT stood at 228 Cr, though lower than the previous 282 Cr, still reflecting solid profitability. ROCE at 23.7% and ROE at 22.3% highlight efficient capital utilization. EPS is healthy at 38.7 ₹. Debt-to-equity at 0.43 is moderate, manageable given strong returns and cash flows.
💰 Valuation: The stock trades at a P/E of 43.1, higher than the industry average of 30.5, suggesting premium valuation. Book value is 196 ₹, with current price at 1,704 ₹, implying a P/B ratio of ~8.7. PEG ratio of 0.65 indicates valuation is attractive relative to growth. Intrinsic value appears close to current levels, suggesting fair valuation with growth potential.
💊 Business Model & Health: EMCURE operates in pharmaceuticals, with strong presence in generics, oncology, and specialty drugs. Competitive advantage lies in diversified product portfolio, R&D capabilities, and global reach. Overall health is strong, supported by profitability, innovation, and moderate leverage.
📈 Entry Zone: RSI at 61.4 indicates mildly overbought levels. Support is near 1,600 ₹, resistance at 1,830 ₹. Entry around 1,600–1,650 ₹ offers a favorable long-term opportunity. Long-term holding is attractive given strong fundamentals, industry growth, and innovation pipeline.
Positive
- 💊 [Strong Portfolio](ca://s?q=EMCURE_product_portfolio): Diversified presence in generics and specialty drugs.
- 📈 [Profitability](ca://s?q=EMCURE_profitability): High ROCE (23.7%) and ROE (22.3%).
- 💸 [Moderate Debt](ca://s?q=EMCURE_debt_levels): Debt-to-equity ratio of 0.43 is manageable.
Limitation
- 📉 [Valuation](ca://s?q=EMCURE_valuation): P/E above industry average.
- ⚠️ [Profit Variation](ca://s?q=EMCURE_profit_variation): Quarterly PAT declined from 282 Cr to 228 Cr.
- 📊 [FII Outflow](ca://s?q=EMCURE_FII_outflow): Foreign investors reduced holdings by -0.24%.
Company Negative News
- 📉 [Quarterly Decline](ca://s?q=EMCURE_quarterly_decline): PAT fell compared to previous quarter.
- 📊 [FII Reduction](ca://s?q=EMCURE_FII_reduction): Decline in foreign institutional holdings.
Company Positive News
- 📈 [Stable DII](ca://s?q=EMCURE_DII_support): Domestic institutions maintained holdings.
- 💹 [Profit Growth](ca://s?q=EMCURE_profit_growth): Strong EPS of 38.7 ₹ reflects profitability.
Industry
- 🏥 [Pharma Growth](ca://s?q=Indian_pharma_growth): Sector expanding with global demand for generics and specialty drugs.
- 📊 [Industry PE](ca://s?q=Pharma_industry_PE): Sector average P/E is 30.5, lower than EMCURE’s valuation.
Conclusion
✅ EMCURE demonstrates strong fundamentals, profitability, and innovation, making it a fundamentally sound investment. While valuations are slightly above industry average, growth prospects and R&D strength justify the premium. Entry around 1,600–1,650 ₹ is favorable, and long-term holding is recommended given the company’s resilience and industry outlook.