PEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.1
| Stock Code | PEL | Market Cap | 25,483 Cr. | Current Price | 1,124 ₹ | High / Low | 1,356 ₹ |
| Stock P/E | 61.4 | Book Value | 974 ₹ | Dividend Yield | 0.98 % | ROCE | 4.90 % |
| ROE | 2.31 % | Face Value | 2.00 ₹ | DMA 50 | 1,144 ₹ | DMA 200 | 1,096 ₹ |
| Chg in FII Hold | -0.89 % | Chg in DII Hold | 0.86 % | PAT Qtr | 162 Cr. | PAT Prev Qtr | -23.3 Cr. |
| RSI | 48.4 | MACD | -6.85 | Volume | 0 | Avg Vol 1Wk | 0 |
| Low price | 848 ₹ | High price | 1,356 ₹ | PEG Ratio | -3.22 | Debt to equity | 0.38 |
| 52w Index | 54.4 % | Qtr Profit Var | -28.8 % | EPS | 19.4 ₹ | Industry PE | 21.9 |
📊 Core Financials:
- Profitability: PAT at 162 Cr. vs -23.3 Cr. shows recovery, but quarterly variation (-28.8%) indicates instability.
- ROE: 2.31% and ROCE: 4.90% → weak efficiency and poor return metrics.
- Debt: Debt-to-equity at 0.38 → moderate leverage.
- Cash Flows: Dividend yield of 0.98% provides modest shareholder returns.
💹 Valuation Indicators:
- P/E: 61.4 vs Industry PE of 21.9 → significantly overvalued.
- P/B: Current Price / Book Value ≈ 1.15 → fair valuation.
- PEG Ratio: -3.22 → negative, reflecting weak growth outlook.
- Intrinsic Value: Estimated fair value closer to 950–1,000 ₹.
🏢 Business Model & Competitive Advantage:
Piramal Enterprises Ltd. (PEL) operates in financial services and pharmaceuticals.
Diversified business model provides resilience, but profitability remains inconsistent.
Competitive advantage lies in established brand presence and diversified portfolio.
However, weak return ratios and stretched valuations limit near-term upside.
🎯 Entry Zone & Long-Term Guidance:
- Entry Zone: 950–1,000 ₹ (near intrinsic value and support levels).
- Long-Term Holding: Suitable only for investors with high risk appetite, awaiting consistent profitability improvement.
Positive
- 🌟 PAT recovery from losses (-23.3 Cr. to 162 Cr.)
- 🌟 Diversified business model (financial services & pharma)
- 🌟 Dividend yield of 0.98%
- 🌟 DII holdings increased (+0.86%)
Limitation
- ⚠️ Weak ROE (2.31%) and ROCE (4.90%)
- ⚠️ High P/E (61.4) vs industry average
- ⚠️ Negative PEG ratio (-3.22)
- ⚠️ Quarterly profit decline (-28.8%)
Company Negative News
- 📉 FII holdings reduced (-0.89%)
- 📉 MACD negative (-6.85) indicates weak momentum
- 📉 Stock trading below recent highs (1,356 ₹)
Company Positive News
- 📈 PAT recovery from losses
- 📈 DII holdings increased (+0.86%)
- 📈 RSI at 48.4 indicates neutral momentum
Industry
- 🏦 Financial services and pharma sectors provide diversification
- 🏦 Industry PE at 21.9 reflects moderate optimism
- 🏦 Growth supported by healthcare demand and credit expansion
Conclusion
✅ Piramal Enterprises shows signs of recovery with PAT turnaround, but weak return ratios and high valuations remain concerns.
Recommended only for high-risk investors with entry around 950–1,000 ₹, while conservative investors should wait for consistent profitability before considering exposure.