PFIZER - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:16 pm

Fundamental Rating: 3.9

📊 Core Financials: Pfizer India demonstrates solid fundamentals with ROE at 16.4% and ROCE at 21.6%, reflecting efficient capital usage. Debt-to-equity is very low at 0.01, ensuring strong financial stability. Quarterly PAT at 189 Cr. shows resilience, though slightly lower than the previous quarter (192 Cr.). EPS of 183 ₹ supports earnings strength.

💹 Valuation Indicators: Current P/E of 33.0 is slightly above industry P/E of 30.6, suggesting moderate overvaluation. P/B ratio ~6.1 (Price 5,103 / Book Value 841) is premium. PEG ratio at 20.9 indicates expensive growth-adjusted valuation. Intrinsic value appears lower than current price, limiting margin of safety.

🏢 Business Model & Competitive Advantage: Pfizer India operates in pharmaceuticals with a strong global brand, diversified product portfolio, and established distribution network. Competitive advantage lies in brand trust, R&D backing from the parent company, and consistent demand for essential medicines. However, growth visibility is modest compared to peers due to limited pipeline expansion.

📈 Entry Zone Recommendation: Current price (5,103 ₹) is near DMA 50 (5,081 ₹) and DMA 200 (5,079 ₹), showing technical consolidation. RSI at 58.6 indicates neutral momentum, while MACD negative (-10.6) suggests mild weakness. Entry zone: 4,800–5,000 ₹ for accumulation. Long-term holding is favorable for stability, but valuation risks remain.

Positive

• ✅ Strong ROE (16.4%) and ROCE (21.6%)
• ✅ Debt-to-equity very low (0.01)
• ✅ EPS of 183 ₹ supports earnings strength
• ✅ Global brand recognition and trust

Limitation

• ⚠️ P/E ratio (33.0) slightly above industry average (30.6)
• ⚠️ PEG ratio very high (20.9)
• ⚠️ Premium P/B ratio (~6.1)
• ⚠️ Modest growth visibility compared to peers

Company Negative News

• 📉 PAT declined slightly from 192 Cr. to 189 Cr.
• 📉 DII holdings decreased (-0.12%)
• 📉 Technical weakness with MACD negative (-10.6)

Company Positive News

• 📢 FII holdings increased (+0.20%)
• 📢 Strong 52-week performance (+61.2%)
• 📢 Stable dividend yield (0.68%)

Industry

• 🌐 Industry P/E at 30.6, showing balanced sector valuations
• 🌐 Pharmaceuticals sector supported by consistent demand for essential medicines
• 🌐 Global R&D and healthcare spending drive long-term growth

Conclusion

🔎 Pfizer India demonstrates strong fundamentals with high return ratios, low debt, and stable earnings. However, valuations remain stretched with high PEG and premium multiples. Entry around 4,800–5,000 ₹ offers margin of safety, making it suitable for long-term holding focused on stability rather than aggressive growth.

Would you like me to extend this into a peer benchmarking overlay comparing Pfizer India with pharma peers like Sun Pharma, Dr. Reddy’s, and Cipla to highlight sector rotation opportunities?