PEL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.5

Html

Copy

📊 Fundamental Analysis Report

• Stock Code: PEL
• Market Cap: ₹25,483 Cr
• Current Price: ₹1,124
• 52W High/Low: ₹1,356 / ₹848
• EPS: ₹19.4
• Stock P/E: 61.4 vs Industry P/E: 22.6 ❗
• PEG Ratio: -3.22 ❗ (Negative PEG indicates unreliable growth)
• Book Value: ₹974 | P/B Ratio: ~1.15 ✅
• ROE: 2.31% | ROCE: 4.90% 🔻
• Debt to Equity: 0.38 🟡 (Moderate Leverage)
• Dividend Yield: 0.98% 💰
• Quarterly PAT: ₹162 Cr (↓28.8%)
• RSI: 48.4 | MACD: -6.85 📉

✅ Positive

• Reasonable P/B ratio (~1.15) suggests fair valuation relative to assets.
• Dividend yield close to 1% adds modest income potential.
• Price trading near DMA 200 indicates technical support zone.
• Positive DII sentiment (+0.86%) reflects domestic institutional confidence.

⚠️ Limitation

• High P/E and negative PEG ratio suggest overvaluation and uncertain growth outlook.
• ROE and ROCE are low, indicating weak capital efficiency.
• Quarterly PAT dropped 28.8%, raising concerns about earnings volatility.
• FII holding declined by 0.89%, signaling cautious foreign sentiment.

📉 Company Negative News

• Sequential PAT drop from ₹-23.3 Cr to ₹162 Cr, but still below prior highs.
• MACD negative and RSI neutral suggest weak momentum.

📈 Company Positive News

• Stock has gained 54.4% over the past year, showing investor interest.
• Diversified presence in financial services and pharma segments offers long-term potential.

🏦 Industry

• PEL operates across financial services and pharmaceuticals, both cyclical and regulated sectors.
• Industry P/E of 22.6 is significantly lower, suggesting PEL trades at a premium.
• Sector growth depends on macroeconomic stability and regulatory clarity.

🧭 Conclusion

• Entry Zone: ₹1,050–₹1,100 (near support and RSI neutral)
• Long-Term View: Mixed fundamentals and valuation caution suggest selective accumulation. Suitable for diversified portfolios with moderate risk appetite.