⚠ 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: 3.5
| Stock Code | EMCURE | Market Cap | 28,144 Cr. | Current Price | 1,485 ₹ | High / Low | 1,586 ₹ |
| Stock P/E | 65.0 | Book Value | 170 ₹ | Dividend Yield | 0.20 % | ROCE | 13.5 % |
| ROE | 11.6 % | Face Value | 10.0 ₹ | DMA 50 | 1,455 ₹ | DMA 200 | 1,369 ₹ |
| Chg in FII Hold | 0.30 % | Chg in DII Hold | 1.74 % | PAT Qtr | 118 Cr. | PAT Prev Qtr | 125 Cr. |
| RSI | 50.7 | MACD | 9.39 | Volume | 1,06,370 | Avg Vol 1Wk | 1,39,844 |
| Low price | 889 ₹ | High price | 1,586 ₹ | PEG Ratio | -4.80 | Debt to equity | 0.50 |
| 52w Index | 85.6 % | Qtr Profit Var | 35.3 % | EPS | 22.7 ₹ | Industry PE | 29.0 |
📊 Core Financials
- Revenue growth: Moderate, PAT at 118 Cr vs 125 Cr in previous quarter, showing slight decline but overall YoY growth trend.
- Profit margins: EPS at 22.7 ₹, indicating profitability though margins are not industry-leading.
- Debt ratios: Debt-to-equity at 0.50, relatively high compared to peers, adds financial risk.
- Cash flows: Supported by profitability, but leverage may constrain flexibility.
- Return metrics: ROCE 13.5 %, ROE 11.6 % — moderate efficiency and shareholder returns.
💹 Valuation Indicators
- P/E ratio: 65.0, significantly above industry average (29.0), suggests overvaluation.
- P/B ratio: Current Price / Book Value ≈ 8.7, expensive relative to assets.
- PEG ratio: -4.80, not meaningful due to distorted growth expectations.
- Intrinsic value: Current valuation stretched, not fully justified by fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in pharmaceutical sector with focus on branded generics and specialty drugs.
- Strong domestic presence with growing international footprint.
- Competitive advantage through product diversification, though debt levels limit flexibility.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive only near 1,350–1,400 ₹ levels, closer to DMA 200 support.
- Long-term holding: Cautious; suitable for investors seeking pharma exposure but valuation is premium and debt levels are higher than ideal.
Positive
- EPS at 22.7 ₹ reflects profitability.
- FII (+0.30 %) and DII (+1.74 %) holdings increased.
- Strong industry demand for pharmaceuticals supports growth outlook.
Limitation
- P/E ratio (65.0) far above industry average (29.0).
- Debt-to-equity ratio at 0.50 is relatively high.
- ROCE and ROE moderate compared to industry leaders.
Company Negative News
- Quarterly PAT declined from 125 Cr to 118 Cr.
- High valuation multiples raise concerns of overpricing.
Company Positive News
- Quarterly profit variation shows overall growth trend (+35.3 % YoY).
- Technical indicators neutral to positive: RSI at 50.7, MACD positive.
- Institutional investors increasing stake.
Industry
- Pharmaceutical industry resilient, driven by healthcare demand and exports.
- Industry PE at 29.0, highlighting EMCURE’s premium valuation.
Conclusion
- EMCURE shows moderate fundamentals with profitability but higher debt levels.
- Valuation is stretched compared to industry peers, limiting upside potential.
- Entry advisable only near support levels; long-term holding requires caution unless debt is reduced and profitability improves.
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