MANYAVAR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | MANYAVAR | Market Cap | 10,374 Cr. | Current Price | 427 ₹ | High / Low | 850 ₹ |
| Stock P/E | 28.6 | Book Value | 70.8 ₹ | Dividend Yield | 1.87 % | ROCE | 25.9 % |
| ROE | 22.3 % | Face Value | 1.00 ₹ | DMA 50 | 424 ₹ | DMA 200 | 574 ₹ |
| Chg in FII Hold | -1.01 % | Chg in DII Hold | 0.62 % | PAT Qtr | 135 Cr. | PAT Prev Qtr | 56.1 Cr. |
| RSI | 53.6 | MACD | 14.7 | Volume | 1,97,821 | Avg Vol 1Wk | 2,39,993 |
| Low price | 329 ₹ | High price | 850 ₹ | PEG Ratio | 3.82 | Debt to equity | 0.27 |
| 52w Index | 18.8 % | Qtr Profit Var | -14.6 % | EPS | 14.9 ₹ | Industry PE | 29.8 |
📊 Financials: MANYAVAR shows strong efficiency with ROCE at 25.9% and ROE at 22.3%, reflecting solid capital utilization. Debt-to-equity ratio is moderate at 0.27, manageable but higher than peers. EPS of ₹14.9 supports profitability, though quarterly PAT declined (-14.6%), raising caution. Dividend yield of 1.87% adds income support.
💹 Valuation: Current P/E of 28.6 is close to industry average (29.8), suggesting fair valuation. PEG ratio of 3.82 indicates growth is already priced in, limiting upside. P/B ratio (~6.0) is elevated relative to book value. Intrinsic value appears slightly lower than current price, requiring disciplined entry.
🏢 Business Model & Advantage: MANYAVAR operates in ethnic apparel, benefiting from strong brand equity, festive demand cycles, and wide distribution. Competitive advantage lies in brand recognition and premium positioning, though growth momentum has slowed.
📈 Entry Zone: Ideal accumulation range is ₹370–₹410 (closer to recent low and below DMA 200). Current price (₹427) is near DMA 50 (₹424) but below DMA 200 (₹574), reflecting weakness in long-term trend.
⏳ Long-Term Holding: Suitable for 3–4 year horizon given strong ROCE/ROE and dividend yield. Partial profit booking advised near ₹440–₹450 resistance. Exit recommended if profitability continues to decline or valuations stretch without earnings support.
Positive
- Strong ROCE (25.9%) and ROE (22.3%)
- Dividend yield of 1.87% provides income support
- Neutral RSI (53.6) indicates balanced momentum
- Strong brand presence in ethnic wear segment
Limitation
- PEG ratio of 3.82 suggests limited upside
- Debt-to-equity ratio (0.27) higher than peers
- Quarterly PAT decline (-14.6%) shows earnings pressure
Company Negative News
- Decline in quarterly profitability despite revenue growth
- FII holding decreased (-1.01%), showing reduced foreign investor confidence
Company Positive News
- DII holding increased (+0.62%), reflecting domestic institutional support
- EPS of ₹14.9 supports valuation relative to peers
Industry
- Industry P/E at 29.8 indicates moderate sector valuation
- MANYAVAR trades close to industry average, reflecting balanced positioning
Conclusion
MANYAVAR is a fundamentally strong company with efficient capital metrics and a decent dividend yield. However, earnings pressure and stretched valuations limit near-term upside. New investors should wait for dips near ₹370–₹410 before entry. Existing holders may continue with a 3–4 year horizon but should book profits near resistance levels and monitor earnings growth closely.