⚠ 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: 3.2
| Stock Code | ETERNAL | Market Cap | 2,34,048 Cr. | Current Price | 243 ₹ | High / Low | 368 ₹ |
| Stock P/E | 92.4 | Book Value | 37.1 ₹ | Dividend Yield | 0.00 % | ROCE | 7.34 % |
| ROE | 6.55 % | Face Value | 1.00 ₹ | DMA 50 | 261 ₹ | DMA 200 | 278 ₹ |
| Chg in FII Hold | -2.80 % | Chg in DII Hold | 2.57 % | PAT Qtr | 657 Cr. | PAT Prev Qtr | 691 Cr. |
| RSI | 46.2 | MACD | -12.5 | Volume | 7,78,85,872 | Avg Vol 1Wk | 7,64,89,519 |
| Low price | 190 ₹ | High price | 368 ₹ | PEG Ratio | 1.84 | Debt to equity | 0.01 |
| 52w Index | 29.6 % | Qtr Profit Var | 33.0 % | EPS | 2.62 ₹ | Industry PE | 39.7 |
📊 Core Financials
- Revenue growth: PAT declined slightly to 657 Cr. from 691 Cr.
- Profit margins: EPS at 2.62 ₹, ROE 6.55%, ROCE 7.34% — weak efficiency
- Debt ratios: Debt-to-equity at 0.01, nearly debt-free
- Cash flows: Profitability supports cash generation but margins are thin
- Return metrics: ROE and ROCE below industry averages
💹 Valuation Indicators
- P/E Ratio: 92.4, far above industry PE of 39.7, reflects extreme overvaluation
- P/B Ratio: ~6.55 (243 ₹ / 37.1 ₹), high relative to fundamentals
- PEG Ratio: 1.84, suggests valuation stretched compared to growth
- Intrinsic Value: Current price appears overvalued given weak returns
🏢 Business Model & Competitive Advantage
- Operates in diversified services sector
- Competitive advantage limited due to weak profitability and high valuation
- Industry demand supported by scale, but company-specific efficiency is low
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near 200–220 ₹ range if fundamentals improve
- Long-Term Holding: Not recommended until profitability strengthens and valuation aligns with industry norms
✅ Positive
- DII holding increased (+2.57%)
- Debt-to-equity ratio at 0.01 shows near debt-free status
- Strong market capitalization at 2,34,048 Cr. provides scale advantage
⚠️ Limitation
- High P/E ratio (92.4) compared to industry average
- ROE (6.55%) and ROCE (7.34%) are weak
- PEG ratio at 1.84 suggests valuation stretched
📰 Company Negative News
- PAT declined to 657 Cr. from 691 Cr.
- FII holding decreased (-2.80%)
- Stock trading below DMA 50 (261 ₹) and DMA 200 (278 ₹), showing weak momentum
🌟 Company Positive News
- DII holding increased (+2.57%)
- RSI at 46.2 indicates neutral technical position
- Strong liquidity with high trading volumes
🏭 Industry
- Industry PE at 39.7, ETERNAL trades at a steep premium
- Sector benefits from scale and diversification, but company-specific efficiency lags
🔎 Conclusion
- ETERNAL shows weak fundamentals with low profitability and efficiency metrics
- Valuation is stretched compared to industry peers, limiting near-term upside
- Not suitable for long-term holding unless earnings improve; entry only near 200–220 ₹ with cautious optimism