FIRSTCRY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | FIRSTCRY | Market Cap | 13,723 Cr. | Current Price | 263 ₹ | High / Low | 499 ₹ |
| Stock P/E | 161 | Book Value | 118 ₹ | Dividend Yield | 0.00 % | ROCE | 2.33 % |
| ROE | 1.17 % | Face Value | 2.00 ₹ | DMA 50 | 292 ₹ | DMA 200 | 356 ₹ |
| Chg in FII Hold | -1.21 % | Chg in DII Hold | 0.93 % | PAT Qtr | 28.9 Cr. | PAT Prev Qtr | 3.18 Cr. |
| RSI | 38.6 | MACD | -6.62 | Volume | 2,82,414 | Avg Vol 1Wk | 7,47,596 |
| Low price | 254 ₹ | High price | 499 ₹ | PEG Ratio | 3.39 | Debt to equity | 0.08 |
| 52w Index | 3.66 % | Qtr Profit Var | 346 % | EPS | 1.61 ₹ | Industry PE | 48.9 |
💹 Financials: FirstCry shows weak return metrics with ROE at 1.17% and ROCE at 2.33%, indicating poor capital efficiency. Debt-to-equity at 0.08 reflects a low leverage structure, which is positive. Quarterly PAT improved significantly from 3.18 Cr. to 28.9 Cr., showing a sharp turnaround, but overall profitability remains modest relative to its market cap. EPS at 1.61 ₹ highlights limited earnings strength.
📊 Valuation: The stock trades at a P/E of 161, far above the industry average of 48.9, suggesting extreme overvaluation. The P/B ratio is ~2.2 (263/118), which is moderate but not justified given weak returns. PEG ratio of 3.39 indicates valuations are stretched relative to growth. Dividend yield at 0.00% offers no income return.
🏢 Business Model & Advantage: FirstCry operates in the e-commerce retail sector, specializing in baby and kids’ products. Its competitive advantage lies in strong brand recognition, wide product range, and omni-channel presence (online + offline stores). Demand is supported by rising disposable incomes and growing preference for branded baby products.
📈 Overall Health: Financially stable with low debt, but profitability and return ratios are weak. RSI at 38.6 suggests the stock is approaching oversold territory, while MACD at -6.62 indicates bearish sentiment in the short term. Long-term fundamentals depend on scaling profitability and sustaining growth, but current valuations are stretched.
🎯 Entry Zone: Attractive entry closer to 250–260 ₹ range, near support levels. Current price of 263 ₹ is expensive relative to earnings. Long-term investors should be cautious, accumulating only at lower levels given poor return ratios and extreme P/E multiples.
Positive
- Low debt-to-equity ratio (0.08) ensures financial stability.
- Quarterly PAT turnaround from 3.18 Cr. to 28.9 Cr. shows recovery momentum.
- Strong brand recognition and omni-channel presence.
- DII holdings increased by 0.93%, reflecting domestic institutional support.
Limitation
- Extremely high P/E (161) compared to industry average (48.9).
- Weak ROE (1.17%) and ROCE (2.33%) indicate poor capital efficiency.
- Dividend yield at 0.00% offers no income return.
- PEG ratio of 3.39 suggests stretched valuation relative to growth.
Company Negative News
- Profitability remains weak despite recent turnaround.
- FII holdings decreased by -1.21%, showing reduced foreign investor confidence.
Company Positive News
- Quarterly PAT improved sharply from 3.18 Cr. to 28.9 Cr.
- DII holdings increased by 0.93%, showing domestic institutional support.
- Strong brand presence in baby and kids’ retail segment.
Industry
- E-commerce retail industry is growing rapidly due to rising digital adoption.
- Industry P/E at 48.9 indicates FirstCry trades at a steep premium compared to peers.
- Sector benefits from increasing disposable incomes and demand for branded products.
Conclusion
FirstCry remains a strategically important player in the baby and kids’ retail space with strong brand equity and growth potential. However, weak profitability and extreme valuations limit attractiveness. Entry is advisable near 250–260 ₹ for long-term investors, with cautious accumulation recommended given poor return ratios and stretched multiples.