⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
PFIZER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | PFIZER | Market Cap | 20,756 Cr. | Current Price | 4,526 ₹ | High / Low | 5,993 ₹ |
| Stock P/E | 29.4 | Book Value | 841 ₹ | Dividend Yield | 0.77 % | ROCE | 21.6 % |
| ROE | 16.4 % | Face Value | 10.0 ₹ | DMA 50 | 4,869 ₹ | DMA 200 | 5,012 ₹ |
| Chg in FII Hold | 0.11 % | Chg in DII Hold | -0.06 % | PAT Qtr | 189 Cr. | PAT Prev Qtr | 192 Cr. |
| RSI | 33.1 | MACD | -105 | Volume | 4,425 | Avg Vol 1Wk | 10,505 |
| Low price | 3,701 ₹ | High price | 5,993 ₹ | PEG Ratio | 18.6 | Debt to equity | 0.01 |
| 52w Index | 36.0 % | Qtr Profit Var | 19.4 % | EPS | 183 ₹ | Industry PE | 29.0 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT at ₹189 Cr. vs. ₹192 Cr. previously, showing stability with slight decline. EPS at ₹183 reflects strong earnings base.
- Return Metrics: ROE at 16.4% and ROCE at 21.6% highlight healthy capital efficiency and profitability.
- Debt Position: Debt-to-equity ratio at 0.01 indicates negligible leverage, ensuring balance sheet strength.
- Cash Flow: Dividend yield of 0.77% provides modest shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 29.4, in line with industry average of 29.0, suggesting fair valuation.
- P/B Ratio: Current Price ₹4,526 vs. Book Value ₹841 → ~5.4, trading at a premium to book value.
- PEG Ratio: 18.6, very high, indicating expensive growth-adjusted valuation.
- Intrinsic Value: Strong fundamentals support valuation, but PEG suggests intrinsic value may be lower than current market price.
💊 Business Model & Competitive Advantage
- Pfizer India operates in pharmaceuticals, with a diversified portfolio across therapeutic areas.
- Competitive advantage lies in brand recognition, R&D capabilities, and global parent support.
- Stable profitability and low debt enhance resilience, though growth-adjusted valuation is stretched.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹4,000–4,300, closer to 52-week low.
- Long-Term Holding: Suitable for investors seeking exposure to pharma with strong fundamentals; long-term compounding potential exists, but entry should be cautious given high PEG ratio.
Positive
- Strong ROE (16.4%) and ROCE (21.6%).
- Debt-to-equity ratio at 0.01 ensures negligible leverage risk.
- Dividend yield at 0.77% provides steady returns.
- FII holdings increased slightly (+0.11%), showing foreign investor confidence.
Limitation
- High PEG ratio (18.6) suggests expensive growth-adjusted valuation.
- P/B ratio at ~5.4 indicates premium valuation.
- Dividend yield modest compared to peers.
- Stock trading below DMA 50 (₹4,869) and DMA 200 (₹5,012), showing bearish trend.
Company Negative News
- DII holdings reduced (-0.06%), showing lower domestic institutional confidence.
- MACD negative (-105), signaling bearish momentum.
Company Positive News
- Quarterly PAT remains stable despite slight decline.
- FII holdings increased (+0.11%).
- RSI at 33.1 indicates oversold condition, potential rebound.
Industry
- Pharma industry P/E at 29.0, in line with Pfizer’s 29.4, suggesting fair valuation.
- Sector outlook supported by rising healthcare demand and innovation in therapies.
Conclusion
- Pfizer India demonstrates strong fundamentals, healthy returns, and negligible debt.
- Valuation is fair relative to industry, but high PEG ratio limits growth-adjusted attractiveness.
- Accumulation near ₹4,000–4,300 is recommended, with potential for long-term compounding in pharma, though cautious entry is advised given stretched growth valuation.
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