PIIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | PIIND | Market Cap | 46,347 Cr. | Current Price | 3,055 ₹ | High / Low | 4,330 ₹ |
| Stock P/E | 28.3 | Book Value | 728 ₹ | Dividend Yield | 0.52 % | ROCE | 25.4 % |
| ROE | 19.7 % | Face Value | 1.00 ₹ | DMA 50 | 3,027 ₹ | DMA 200 | 3,318 ₹ |
| Chg in FII Hold | -0.10 % | Chg in DII Hold | 0.26 % | PAT Qtr | 298 Cr. | PAT Prev Qtr | 491 Cr. |
| RSI | 54.3 | MACD | 37.4 | Volume | 2,10,195 | Avg Vol 1Wk | 2,99,646 |
| Low price | 2,700 ₹ | High price | 4,330 ₹ | PEG Ratio | 0.89 | Debt to equity | 0.00 |
| 52w Index | 21.8 % | Qtr Profit Var | -29.6 % | EPS | 107 ₹ | Industry PE | 25.0 |
📊 PIIND demonstrates strong fundamentals with ROE at 19.7% and ROCE at 25.4%, reflecting efficient capital utilization. EPS of 107 ₹ supports earnings visibility, and the PEG ratio of 0.89 suggests fair valuation relative to growth. The company is debt-free (debt-to-equity 0.00), enhancing financial stability. P/E ratio of 28.3 is slightly above the industry average of 25.0, indicating mild premium valuation. Dividend yield of 0.52% provides modest income. However, quarterly PAT declined sharply (-29.6%), highlighting earnings volatility.
💰 Ideal Entry Price Zone: 2,900 ₹ – 3,100 ₹, near DMA 50 (3,027 ₹), offering margin of safety.
📈 Long-Term Holding Guidance: PIIND is suitable for long-term holding (5+ years) given strong fundamentals, debt-free status, and fair valuation metrics. Investors may consider partial profit booking near 4,200–4,300 ₹ if valuations stretch without earnings support.
✅ Positive
- Strong ROE (19.7%) and ROCE (25.4%).
- Debt-free balance sheet (debt-to-equity 0.00).
- PEG ratio of 0.89 indicates fair valuation relative to growth.
- EPS of 107 ₹ supports earnings visibility.
⚠️ Limitation
- P/E ratio (28.3) slightly above industry average (25.0).
- Dividend yield modest at 0.52%.
- Quarterly PAT declined from 491 Cr. to 298 Cr. (-29.6%).
- Book value (728 ₹) significantly lower than CMP (3,055 ₹), suggesting stretched valuations.
📉 Company Negative News
- Quarterly profit decline highlights earnings volatility.
- FII holding decreased (-0.10%), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holding increased (+0.26%), reflecting domestic institutional support.
- Strong EPS and debt-free status enhance long-term visibility.
- MACD positive (37.4), supporting bullish technical momentum.
🏭 Industry
- Industry P/E at 25.0, slightly lower than PIIND’s 28.3, suggesting mild premium valuation.
- Chemicals and agro sector benefits from global demand but faces cyclical risks.
🔎 Conclusion
PIIND is a fundamentally strong, debt-free company with solid ROE, ROCE, and fair valuation metrics. Entry near 2,900–3,100 ₹ offers margin of safety, while long-term holding can deliver steady compounding returns. Exit only if valuations run ahead of fundamentals without earnings support.