ETERNAL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.2

📊 Core Financials Assessment

Profitability

ROCE: 7.34% | ROE: 6.55% — below average, especially for a large-cap

EPS: ₹2.21 — very low relative to market cap and price

PAT Qtr: ₹602 Cr vs ₹582 Cr — decent growth, but margins remain thin

Balance Sheet & Cash Flow

Debt-to-Equity: 0.01 — excellent capital structure

Dividend Yield: 0.00% — no income for long-term holders

Book Value: ₹35.4 — P/B ~9.54, extremely high

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 155 Extremely overvalued vs industry PE of 37.7

PEG Ratio 3.09 Suggests expensive growth

Intrinsic Value ~₹280–₹300 CMP is above fair value zone

Valuation is highly stretched. The fundamentals don’t justify the premium.

🏢 Business Model & Competitive Edge

Sector: Air Freight/Couriers — asset-light but competitive

Strengths

Massive scale (₹3.26 lakh Cr market cap)

High volume and liquidity — attractive for traders

Low debt and consistent profit growth

Concerns

Weak return ratios despite scale

No dividend policy — not ideal for income investors

FII holding down 2.02% — institutional caution

📉 Technicals & Entry Zone

Current Price: ₹338

DMA 50: ₹307 | DMA 200: ₹265 — bullish trend

RSI: 69.1 — nearing overbought zone

MACD: Positive — momentum intact

📌 Suggested Entry Zone: ₹290–₹310

A pullback near the 50 DMA would offer better risk-reward.

🧭 Long-Term Holding Guidance

Hold with caution: If already invested, monitor return ratios and valuation compression.

Avoid fresh entry at CMP: Wait for correction or signs of margin expansion.

You can explore analyst forecasts and technicals on TradingView or financials and valuation metrics on StockAnalysis for deeper insights. Let me know if you'd like a peer comparison or sector outlook next.

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