ENRIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | ENRIN | Market Cap | 1,16,765 Cr. | Current Price | 3,279 ₹ | High / Low | 3,625 ₹ |
| Stock P/E | 95.7 | Book Value | 123 ₹ | Dividend Yield | 0.12 % | ROCE | 67.8 % |
| ROE | 50.5 % | Face Value | 2.00 ₹ | DMA 50 | 2,905 ₹ | DMA 200 | 2,888 ₹ |
| Chg in FII Hold | 0.38 % | Chg in DII Hold | -0.08 % | PAT Qtr | 351 Cr. | PAT Prev Qtr | 360 Cr. |
| RSI | 72.0 | MACD | 139 | Volume | 4,04,700 | Avg Vol 1Wk | 6,02,776 |
| Low price | 2,105 ₹ | High price | 3,625 ₹ | Debt to equity | 0.03 | 52w Index | 77.2 % |
| Qtr Profit Var | 51.7 % | EPS | ₹ | Industry PE | 37.9 |
📊 ENRIN demonstrates exceptional efficiency metrics with ROCE (67.8%) and ROE (50.5%), reflecting strong capital utilization and shareholder returns. The company is virtually debt-free (Debt-to-equity: 0.03), ensuring financial stability. However, valuations are extremely stretched with P/E (95.7) compared to industry average (37.9), making intrinsic value questionable. EPS data is missing, but PAT remains stable (₹351 Cr. vs ₹360 Cr. QoQ). Current price ₹3,279 is well above DMA 50 (₹2,905) and DMA 200 (₹2,888), showing strong momentum but limited margin of safety. Entry zone is attractive near ₹3,000–3,150 for accumulation.
💡 Long-term investors may hold with a 3–5 year horizon, given strong fundamentals, but should monitor valuation multiples closely. Exit strategy: partial profit booking near ₹3,450–3,500 or full exit if earnings growth slows and valuations remain stretched.
Positive
- 📈 Exceptional ROCE (67.8%) and ROE (50.5%).
- 💰 Virtually debt-free balance sheet (Debt-to-equity: 0.03).
- 📊 Strong technicals: price above DMA 50 & 200, RSI at 72, MACD positive (139).
- 📈 FII holding increased (+0.38%), showing foreign investor confidence.
Limitation
- ⚠️ Extremely high P/E (95.7 vs industry 37.9) indicates overvaluation.
- 📉 PEG ratio not available, limiting growth efficiency analysis.
- 📊 PAT slightly declined (₹360 Cr. → ₹351 Cr.).
Company Negative News
- 📉 DII holding decreased (-0.08%), showing reduced domestic institutional support.
- 📊 Valuation concerns due to stretched multiples.
Company Positive News
- 📈 Strong quarterly profit variation (+51.7%).
- 📊 Technical indicators show bullish momentum with RSI above 70.
Industry
- 🏭 Industry PE at 37.9 is much lower than ENRIN’s 95.7, highlighting premium valuation.
- 📈 Sector benefits from strong demand and capital efficiency, but valuations remain a concern.
Conclusion
⚖️ ENRIN is a fundamentally strong company with outstanding ROCE and ROE, but trades at extremely high valuations. Ideal entry is near ₹3,000–3,150. Long-term investors may hold cautiously for 3–5 years, but monitoring valuation multiples and earnings growth is essential. Exit near ₹3,450–3,500 or on deterioration of profitability metrics.
This structured HTML report captures ENRIN’s fundamentals, valuation risks, and sector context with clear entry/exit guidance. Would you like me to extend this into a peer benchmarking overlay against Infosys, TCS, and HCL Tech to highlight relative positioning in efficiency and valuation?