⚠ 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.
ETERNAL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | ETERNAL | Market Cap | 2,60,030 Cr. | Current Price | 270 ₹ | High / Low | 368 ₹ |
| Stock P/E | 103 | Book Value | 37.1 ₹ | Dividend Yield | 0.00 % | ROCE | 7.34 % |
| ROE | 6.55 % | Face Value | 1.00 ₹ | DMA 50 | 286 ₹ | DMA 200 | 285 ₹ |
| Chg in FII Hold | -2.80 % | Chg in DII Hold | 2.57 % | PAT Qtr | 657 Cr. | PAT Prev Qtr | 691 Cr. |
| RSI | 44.2 | MACD | -5.47 | Volume | 2,15,70,777 | Avg Vol 1Wk | 6,82,12,340 |
| Low price | 190 ₹ | High price | 368 ₹ | PEG Ratio | 2.04 | Debt to equity | 0.01 |
| 52w Index | 44.7 % | Qtr Profit Var | 33.0 % | EPS | 2.62 ₹ | Industry PE | 48.9 |
📊 Core Financials
- Revenue growth: PAT at 657 Cr vs 691 Cr in previous quarter, showing slight decline but overall YoY growth (+33 %).
- Profit margins: EPS at 2.62 ₹, relatively weak given market cap size.
- Debt ratios: Excellent, debt-to-equity at 0.01 shows negligible leverage.
- Cash flows: Supported by profitability, but low return ratios limit efficiency.
- Return metrics: ROCE 7.34 %, ROE 6.55 % — weak efficiency compared to peers.
💹 Valuation Indicators
- P/E ratio: 103, far above industry average (48.9), suggests significant overvaluation.
- P/B ratio: Current Price / Book Value ≈ 7.3, expensive relative to assets.
- PEG ratio: 2.04, indicates valuation stretched relative to growth.
- Intrinsic value: Current valuation not justified by fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in large-cap sector with diversified operations.
- Competitive advantage limited by weak return ratios despite scale.
- Strong institutional presence but fundamentals lag behind valuation multiples.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive only near 200–220 ₹ levels, closer to 52-week low support.
- Long-term holding: Cautious; suitable for traders or momentum investors, but fundamentals do not support premium valuation for long-term holding.
Positive
- Quarterly profit growth YoY (+33 %).
- Negligible debt-to-equity ratio (0.01).
- DII holdings increased (+2.57 %).
Limitation
- ROE (6.55 %) and ROCE (7.34 %) are weak.
- P/E ratio (103) far above industry average (48.9).
- No dividend yield, limiting investor returns.
Company Negative News
- FII holdings decreased (-2.80 %).
- Quarterly PAT declined from 691 Cr to 657 Cr.
- Technical indicators weak: MACD negative, RSI at 44.2.
Company Positive News
- Strong YoY profit growth (+33 %).
- Low debt ensures financial stability.
- High liquidity with strong trading volumes.
Industry
- Industry PE at 48.9, much lower than ETERNAL’s P/E, highlighting overvaluation.
- Sector supported by institutional demand but fundamentals remain key for sustainability.
Conclusion
- ETERNAL shows profitability growth but weak efficiency metrics and stretched valuation.
- Valuation is significantly higher than industry peers, limiting upside potential.
- Entry advisable only near lower support levels; long-term holding requires caution unless return ratios improve.
Would you like me to also prepare a peer comparison HTML snapshot against other large-cap companies in the same sector to highlight ETERNAL’s relative valuation and efficiency gaps?