⚠ 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.
MANYAVAR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | MANYAVAR | Market Cap | 11,627 Cr. | Current Price | 478 ₹ | High / Low | 975 ₹ |
| Stock P/E | 30.2 | Book Value | 70.8 ₹ | Dividend Yield | 1.67 % | ROCE | 25.9 % |
| ROE | 22.3 % | Face Value | 1.00 ₹ | DMA 50 | 560 ₹ | DMA 200 | 707 ₹ |
| Chg in FII Hold | -0.47 % | Chg in DII Hold | 1.05 % | PAT Qtr | 56.1 Cr. | PAT Prev Qtr | 70.3 Cr. |
| RSI | 23.5 | MACD | -27.4 | Volume | 70,394 | Avg Vol 1Wk | 2,19,072 |
| Low price | 466 ₹ | High price | 975 ₹ | PEG Ratio | 4.03 | Debt to equity | 0.27 |
| 52w Index | 2.54 % | Qtr Profit Var | -16.2 % | EPS | 15.9 ₹ | Industry PE | 43.7 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT declined from 70.3 Cr. to 56.1 Cr. (-16.2%), showing short-term earnings pressure.
- Margins & Returns: Strong ROCE (25.9%) and ROE (22.3%) highlight efficient capital usage and profitability.
- Debt Ratios: Debt-to-equity at 0.27 indicates moderate leverage, manageable but worth monitoring.
- Cash Flows: Consistent profitability and dividend yield (1.67%) suggest healthy cash generation.
💹 Valuation Indicators
- P/E Ratio: 30.2 vs industry average of 43.7 → trades at a discount.
- P/B Ratio: Current Price / Book Value ≈ 6.75 → relatively high compared to intrinsic value.
- PEG Ratio: 4.03 → signals overvaluation relative to growth.
- Intrinsic Value: Current price (478 ₹) appears undervalued compared to industry peers, but growth concerns limit upside.
🏢 Business Model & Competitive Advantage
- Leading ethnic wear brand with strong brand recognition and wide distribution network.
- High efficiency ratios (ROCE, ROE) provide competitive edge.
- Dividend yield adds shareholder value, enhancing attractiveness for long-term investors.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 460 ₹ – 480 ₹, near recent lows and support levels.
- Long-Term Holding: Suitable for investors seeking brand-driven growth, but staggered buying recommended due to earnings pressure and high PEG ratio.
✅ Positive
- Strong ROCE and ROE indicate efficient capital usage.
- Dividend yield of 1.67% provides steady income.
- DII holdings increased (+1.05%), reflecting domestic institutional confidence.
⚠️ Limitation
- Quarterly PAT decline (-16.2%) shows earnings pressure.
- PEG ratio of 4.03 signals overvaluation relative to growth.
- Moderate debt-to-equity ratio (0.27) requires monitoring.
📉 Company Negative News
- Stock trading below both 50 DMA (560 ₹) and 200 DMA (707 ₹), indicating weak momentum.
- RSI at 23.5 and negative MACD (-27.4) suggest oversold and bearish technical outlook.
- Decline in FII holdings (-0.47%) shows reduced foreign investor confidence.
📈 Company Positive News
- Strong brand positioning in ethnic wear market.
- DII holdings increased (+1.05%), supporting domestic confidence.
- Dividend yield adds value for long-term investors.
🏭 Industry
- Industry P/E at 43.7 indicates sector trades at higher multiples.
- Apparel and retail sector benefits from rising consumer demand and festive spending.
- MANYAVAR trades at a discount compared to peers, offering potential value for long-term investors.
🔎 Conclusion
MANYAVAR demonstrates strong fundamentals with high efficiency and brand strength, but faces short-term earnings pressure and weak technical momentum. Entry is advisable near 460 ₹ – 480 ₹ for long-term investors, with staggered accumulation to mitigate risks. Overall, the company remains financially healthy and strategically positioned, though valuation signals caution on growth expectations.
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