EMCURE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.9

🧬 Core Financials Overview

Profit Performance

EPS: ₹36.0 ➜ solid earnings per share

PAT growth: ₹195 Cr vs ₹154 Cr ➜ up 69.5% QoQ ➜ reflects strong operational leverage

Efficiency & Returns

ROE: 18.6% | ROCE: 20.8% ➜ commendable return ratios ➜ efficient capital deployment

Balance Sheet

Debt-to-equity: 0.23 ➜ reasonably low ➜ supports growth without financial strain

Dividend Yield: 0% ➜ reinvestment-oriented ➜ capital plowed back into the business

📌 Insight: Good return metrics and profit growth but no dividend income for investors seeking yield.

📊 Valuation Analysis

Metric Value Commentary

P/E Ratio 38.8 slightly above industry PE (34.0) ➜ moderate premium

P/B Ratio ~6.0 (₹1,409 / ₹235) ➜ reflects pricing of future growth and brand strength

PEG Ratio 30.3 exceptionally high ➜ valuation distorted due to short-term profit spike

📉 Verdict: Currently overvalued ➜ PEG implies expectations may be inflated or unsustainable

💊 Business Model & Competitive Moat

Diversified pharma player with emphasis on acute, chronic, and women’s health segments

Presence in domestic and international markets (including US, Europe, LATAM)

Moats

Strong R&D capabilities with complex generics & injectables

High penetration in Tier 2/3 India & emerging global markets

Backward integration for APIs ➜ margin protection

📌 Challenges

Regulatory risks (especially in export markets)

FX and input cost volatility

Competitive pressure from bigger pharma players and biosimilar entrants

📈 Technical Indicators

RSI: 66 ➜ close to overbought ➜ risk of near-term pullback

MACD: 34 ➜ bullish ➜ momentum intact

Price above DMA 50 & 200 ➜ trend remains positive

✅ Suggested Entry Zone: ₹1,285–₹1,325 ⏳ Consider staggered entry post RSI cool-off or on MACD consolidation dips

🧭 Long-Term Investment Outlook

Ideal for investors focused on

Pharma exposure with scalable generics portfolio

Strong growth in Tier 3 & export markets

Innovation-focused, low-debt companies

📊 Monitor

New product launches and global regulatory filings

Margin consistency and cost control

Institutional activity and stake movements

Want to see how EMCURE stacks against Syngene or Torrent Pharma on innovation, exports, or R&D intensity? I can bring up a heatmap or performance matrix for deeper benchmarking.

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