ONESOURCE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.4
| Stock Code | ONESOURCE | Market Cap | 19,926 Cr. | Current Price | 1,738 ₹ | High / Low | 2,250 ₹ |
| Stock P/E | 110 | Book Value | 522 ₹ | Dividend Yield | 0.00 % | ROCE | 6.42 % |
| ROE | 4.14 % | Face Value | 1.00 ₹ | DMA 50 | 1,522 ₹ | DMA 200 | 1,601 ₹ |
| Chg in FII Hold | -1.74 % | Chg in DII Hold | 1.81 % | PAT Qtr | -55.1 Cr. | PAT Prev Qtr | 37.1 Cr. |
| RSI | 65.7 | MACD | 96.2 | Volume | 3,20,876 | Avg Vol 1Wk | 4,97,003 |
| Low price | 1,057 ₹ | High price | 2,250 ₹ | PEG Ratio | 2.97 | Debt to equity | 0.22 |
| 52w Index | 57.1 % | Qtr Profit Var | -300 % | EPS | 15.2 ₹ | Industry PE | 30.1 |
📊 ONESOURCE shows weak fundamentals with ROE at 4.14% and ROCE at 6.42%, reflecting poor capital efficiency. The P/E ratio of 110 is extremely high compared to the industry average of 30.1, indicating severe overvaluation. EPS of 15.2 ₹ is modest relative to price, and dividend yield is 0%, offering no income support. PAT turned negative (-55.1 Cr. vs 37.1 Cr. previous quarter), highlighting earnings deterioration. PEG ratio of 2.97 suggests growth is overpriced. Debt-to-equity ratio of 0.22 is manageable, but profitability remains inconsistent.
💰 Ideal Entry Price Zone: 1,450 ₹ – 1,550 ₹, near its 200 DMA (1,601 ₹), only for speculative traders willing to take high risk.
📈 Long-Term Holding Guidance: Not recommended for long-term accumulation until earnings stabilize and ROE/ROCE improve. Current holders may consider short- to medium-term horizon, booking profits near 1,950–2,050 ₹ if valuations stretch without earnings support.
✅ Positive
- Market cap of 19,926 Cr. provides scale.
- Debt-to-equity ratio of 0.22 indicates manageable leverage.
- DII holding increased (+1.81%), showing domestic institutional support.
⚠️ Limitation
- Extremely high P/E (110) compared to industry average (30.1).
- Weak ROE (4.14%) and ROCE (6.42%).
- No dividend yield, limiting investor returns.
- PAT turned negative (-55.1 Cr.), showing earnings deterioration.
📉 Company Negative News
- Quarterly profit variation at -300% highlights volatility.
- FII holding decreased (-1.74%), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holding increased (+1.81%), reflecting domestic institutional support.
- Technical momentum with RSI at 65.7 and MACD positive (96.2).
🏭 Industry
- Industry P/E at 30.1, much lower than ONESOURCE’s 110, highlighting overvaluation.
- Sector growth potential exists, but sustainability depends on consistent earnings.
🔎 Conclusion
ONESOURCE is currently overvalued with weak fundamentals and negative earnings. It is not a suitable candidate for long-term investment until profitability improves. Entry near 1,450–1,550 ₹ may suit speculative traders, but long-term investors should avoid accumulation until ROE/ROCE strengthen and earnings stabilize.