ENRIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | ENRIN | Market Cap | 1,24,896 Cr. | Current Price | 3,508 ₹ | High / Low | 3,685 ₹ |
| Stock P/E | 92.6 | Book Value | 135 ₹ | Dividend Yield | 0.11 % | ROCE | 67.8 % |
| ROE | 50.5 % | Face Value | 2.00 ₹ | DMA 50 | 3,056 ₹ | DMA 200 | 2,936 ₹ |
| Chg in FII Hold | 0.38 % | Chg in DII Hold | -0.08 % | PAT Qtr | 375 Cr. | PAT Prev Qtr | 351 Cr. |
| RSI | 68.5 | MACD | 107 | Volume | 4,48,160 | Avg Vol 1Wk | 14,63,847 |
| Low price | 2,105 ₹ | High price | 3,685 ₹ | Debt to equity | 0.04 | 52w Index | 88.8 % |
| Qtr Profit Var | 52.2 % | EPS | 36.8 ₹ | Industry PE | 35.3 |
📊 Financials: ENRIN has a market cap of ₹1,24,896 Cr. Quarterly PAT improved from ₹351 Cr. to ₹375 Cr. (52.2% growth), showing strong profitability momentum. ROE at 50.5% and ROCE at 67.8% reflect exceptional efficiency. Debt-to-equity ratio of 0.04 indicates an almost debt-free balance sheet, supporting robust cash flows. EPS at ₹36.8 is healthy, highlighting strong earnings visibility.
💹 Valuation: Current P/E of 92.6 is far above the industry average of 35.3, suggesting significant overvaluation. P/B ratio (~26.0) is extremely high compared to book value ₹135. PEG ratio is not available, limiting growth assessment. Intrinsic value appears lower than CMP ₹3,508, limiting near-term upside.
🏦 Business Model: ENRIN operates in the energy and infrastructure sector, with strong exposure to renewable energy and industrial solutions. Its competitive advantage lies in innovation, efficiency, and diversified operations. Strong brand and R&D capabilities provide resilience, though valuations remain stretched.
📉 Entry Zone: RSI at 68.5 suggests overbought conditions, while MACD at 107 indicates bullish momentum. A potential entry zone could be around ₹3,200–₹3,300 for accumulation. Long-term investors may hold, given strong fundamentals and sectoral positioning, but valuation risks remain elevated.
Positive
- 📈 Strong ROCE (67.8%) and ROE (50.5%).
- 💰 Debt-free balance sheet (Debt-to-equity 0.04).
- ⚡ Strong presence in renewable energy and infrastructure solutions.
Limitation
- ⚠️ High P/E (92.6) vs industry average (35.3).
- 📉 Elevated P/B ratio (~26.0).
- 🔄 Overbought RSI (68.5), limiting near-term entry.
Company Negative News
- 📉 Decline in DII holding (-0.08%).
Company Positive News
- 📊 Increase in FII holding (+0.38%).
- 📈 PAT growth from ₹351 Cr. to ₹375 Cr.
Industry
- 💹 Industry PE at 35.3, much lower than ENRIN’s 92.6.
- ⚡ Energy sector expanding with renewable adoption.
- 🏦 Strong demand for infrastructure and industrial solutions.
Conclusion
⚖️ ENRIN is a fundamentally strong, debt-free energy player with exceptional returns and strong sectoral positioning. However, valuations are stretched, limiting near-term upside. Entry may be considered around ₹3,200–₹3,300 for long-term investors, with confidence in its innovation-driven growth but caution regarding high multiples.
For deeper insights, you could explore ENRIN peer comparison or a technical chart analysis to complement this fundamental view.