PFIZER - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.0

📊 Core Financials Analysis

Profitability

ROE: 16.4% and ROCE: 21.6% — solid returns, indicating efficient capital deployment.

EPS: ₹177 — strong earnings per share, supporting valuation.

PAT Qtr: ₹192 Cr vs ₹198 Cr — stable performance with a healthy 27.2% YoY profit variation.

Balance Sheet & Cash Flow

Debt-to-equity: 0.01 — virtually debt-free, a major strength.

Dividend Yield: 0.67% — modest, but consistent with a conservative payout policy.

Cash flows are stable, backed by consistent profitability and low leverage.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 35.1 Slightly above industry average (33.4) — fair to mildly expensive

P/B Ratio ~5.63 Reasonable given strong ROE

PEG Ratio 22.2 Very high — suggests valuation exceeds growth expectations

Intrinsic Value ₹4,800–₹5,000 (est.) Current price slightly above fair value

🧠 Business Model & Competitive Edge

Company Profile: Pfizer India is a subsidiary of global pharma giant Pfizer Inc., focused on prescription drugs, vaccines, and consumer healthcare.

Strengths

Strong brand equity and global R&D backing.

Diverse product portfolio across chronic and acute therapies.

High regulatory compliance and manufacturing standards.

Challenges

Limited pricing power in India due to regulatory caps.

High PEG ratio suggests muted growth relative to valuation.

📈 Technical & Sentiment Overview

RSI: 47.3 — neutral zone, no strong momentum.

MACD: -39.2 — bearish crossover, short-term weakness.

DMA 50 & 200: Price hovering near both — consolidation phase.

Volume: Slightly above average — steady investor interest.

FII/DII Holding: Mild uptick — institutional sentiment stable.

💡 Entry Zone & Long-Term Guidance

Suggested Entry Range: ₹4,800–₹5,000 — near intrinsic value and technical support.

Holding Strategy

Ideal for long-term investors seeking stability and global pharma exposure.

Price targets for FY27 range from ₹5,800 to ₹6,400 based on projected earnings.

Monitor product launches, regulatory changes, and global pipeline updates.

Pfizer India offers a blend of defensive strength and global pedigree, making it a reliable anchor in a healthcare-focused portfolio. Want to compare it with Abbott India or GSK next?

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