⚠ 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.
ENRIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | ENRIN | Market Cap | 87,924 Cr. | Current Price | 2,473 ₹ | High / Low | 3,625 ₹ |
| Stock P/E | 79.5 | Book Value | 123 ₹ | Dividend Yield | 0.16 % | ROCE | 39.0 % |
| ROE | 29.1 % | Face Value | 2.00 ₹ | DMA 50 | 2,646 ₹ | DMA 200 | 2,907 ₹ |
| Chg in FII Hold | 1.05 % | Chg in DII Hold | -1.35 % | PAT Qtr | 360 Cr. | PAT Prev Qtr | 263 Cr. |
| RSI | 49.6 | MACD | -90.1 | Volume | 1,51,404 | Avg Vol 1Wk | 7,83,599 |
| Low price | 2,105 ₹ | High price | 3,625 ₹ | Debt to equity | 0.03 | 52w Index | 24.2 % |
| Qtr Profit Var | % | EPS | 30.9 ₹ | Industry PE | 35.4 |
📊 Core Financials
- Quarterly PAT at 360 Cr vs 263 Cr previously, showing strong sequential growth.
- ROE at 29.1% and ROCE at 39.0% reflect excellent capital efficiency and profitability.
- Debt-to-equity ratio at 0.03 indicates a virtually debt-free balance sheet.
- EPS at 30.9 ₹ provides a solid earnings base, backed by consistent performance.
💹 Valuation Indicators
- P/E ratio: 79.5, much higher than industry average of 35.4, suggesting overvaluation.
- P/B ratio: ~20.1 (2,473 ₹ / 123 ₹ book value), showing extreme premium pricing.
- PEG ratio not available, but high P/E suggests limited growth-adjusted comfort.
- Intrinsic value appears lower than current price, limited margin of safety.
🏢 Business Model & Competitive Advantage
- ENRIN operates in renewable energy and infrastructure, focusing on sustainable power solutions.
- Competitive advantage lies in strong ROE/ROCE, low debt, and exposure to high-growth renewable sector.
- Global energy transition provides long-term growth opportunities.
📈 Entry Zone & Long-Term Guidance
- Entry zone: 2,300–2,450 ₹ range (near support levels and RSI at 49.6, neutral zone).
- Long-term holding viable for investors seeking exposure to renewable energy growth.
- Accumulation should be cautious due to stretched valuations despite strong fundamentals.
Positive
- Strong ROE (29.1%) and ROCE (39.0%).
- Debt-free balance sheet (Debt-to-equity 0.03).
- Sequential PAT growth demonstrates operational strength.
Limitation
- High P/E (79.5) compared to industry average (35.4).
- Very high P/B ratio (~20.1), indicating extreme premium valuation.
- Dividend yield at 0.16% is negligible.
Company Negative News
- DII holdings decreased (-1.35%), showing reduced domestic institutional support.
- Stock trading below 200 DMA (2,907 ₹), reflecting medium-term weakness.
Company Positive News
- FII holdings increased (+1.05%), showing foreign investor confidence.
- Quarterly PAT growth (360 Cr vs 263 Cr) highlights strong performance.
Industry
- Industry PE at 35.4, much lower than ENRIN’s 79.5, highlighting sector undervaluation relative to ENRIN.
- Renewable energy and infrastructure sector expected to grow steadily with global sustainability demand.
Conclusion
- ENRIN is fundamentally strong with high returns and debt-free operations.
- Valuations remain stretched, making accumulation near 2,300–2,450 ₹ more attractive.
- Best suited for long-term investors seeking renewable energy exposure, but caution advised due to premium valuations.
I can also prepare a peer comparison with Adani Green and Tata Power to highlight how ENRIN stacks up in valuation and profitability. Would you like me to draft that next?