PFIZER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | PFIZER | Market Cap | 21,550 Cr. | Current Price | 4,711 ₹ | High / Low | 5,993 ₹ |
| Stock P/E | 28.3 | Book Value | 841 ₹ | Dividend Yield | 0.74 % | ROCE | 21.6 % |
| ROE | 16.4 % | Face Value | 10.0 ₹ | DMA 50 | 4,820 ₹ | DMA 200 | 4,932 ₹ |
| Chg in FII Hold | 0.10 % | Chg in DII Hold | -0.16 % | PAT Qtr | 182 Cr. | PAT Prev Qtr | 189 Cr. |
| RSI | 44.1 | MACD | -13.0 | Volume | 8,001 | Avg Vol 1Wk | 12,080 |
| Low price | 4,100 ₹ | High price | 5,993 ₹ | PEG Ratio | 17.9 | Debt to equity | 0.01 |
| 52w Index | 32.2 % | Qtr Profit Var | 43.0 % | EPS | 187 ₹ | Industry PE | 30.1 |
📊 PFIZER shows moderate-to-strong fundamentals with ROE at 16.4% and ROCE at 21.6%, reflecting efficient capital utilization. EPS of 187 ₹ supports earnings strength, and the P/E ratio of 28.3 is slightly below the industry average of 30.1, suggesting fair valuation. Dividend yield of 0.74% adds modest income support. Debt-to-equity ratio is very low (0.01), showing financial stability. However, the PEG ratio of 17.9 indicates growth expectations are expensive relative to earnings. PAT declined slightly (189 Cr. → 182 Cr.), and technical indicators (RSI 44.1, MACD -13.0) show weak momentum.
💰 Ideal Entry Price Zone: 4,500 ₹ – 4,700 ₹, near its recent low (4,100 ₹) and below 50 DMA (4,820 ₹), offering a safer entry aligned with support levels.
📈 Long-Term Holding Guidance: PFIZER is suitable for a medium-to-long-term horizon (3–5 years) given stable fundamentals and dividend yield. Consider partial profit booking near 5,800–6,000 ₹ (recent highs) while retaining core holdings for compounding. Long-term investors should monitor PEG ratio and earnings growth before extending holding beyond 5 years.
✅ Positive
- Healthy ROCE (21.6%) and ROE (16.4%).
- P/E (28.3) is slightly below industry average (30.1).
- Dividend yield of 0.74% provides modest income.
- Debt-to-equity ratio of 0.01 indicates financial stability.
⚠️ Limitation
- High PEG ratio (17.9) suggests growth is expensive.
- Quarterly PAT declined from 189 Cr. to 182 Cr.
- Technical indicators show weak momentum (RSI 44.1, MACD -13.0).
📉 Company Negative News
- DII holding decreased (-0.16%), showing weaker domestic institutional support.
- Quarterly profit decline highlights earnings pressure.
📈 Company Positive News
- FII holding increased (+0.10%), reflecting foreign investor confidence.
- EPS at 187 ₹ demonstrates strong earnings power.
🏭 Industry
- Industry P/E at 30.1, slightly higher than PFIZER’s 28.3, suggesting fair valuation.
- Pharmaceutical sector benefits from consistent demand, though regulatory and pricing risks remain.
🔎 Conclusion
PFIZER is a moderately valued, financially stable company with decent ROE/ROCE and modest dividend yield. It is a fair candidate for medium-to-long-term investment, though growth expectations are expensive. Entry near 4,500–4,700 ₹ offers better risk-reward. Current holders should maintain positions for 3–5 years, booking partial profits near highs while monitoring earnings growth and PEG ratio.