POLYMED - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | POLYMED | Market Cap | 15,327 Cr. | Current Price | 1,512 ₹ | High / Low | 2,938 ₹ |
| Stock P/E | 44.2 | Book Value | 285 ₹ | Dividend Yield | 0.23 % | ROCE | 18.2 % |
| ROE | 14.2 % | Face Value | 5.00 ₹ | DMA 50 | 1,427 ₹ | DMA 200 | 1,700 ₹ |
| Chg in FII Hold | -3.49 % | Chg in DII Hold | 1.76 % | PAT Qtr | 83.4 Cr. | PAT Prev Qtr | 89.0 Cr. |
| RSI | 60.8 | MACD | 44.1 | Volume | 62,003 | Avg Vol 1Wk | 1,26,268 |
| Low price | 1,182 ₹ | High price | 2,938 ₹ | PEG Ratio | 1.43 | Debt to equity | 0.08 |
| 52w Index | 18.8 % | Qtr Profit Var | -2.04 % | EPS | 33.8 ₹ | Industry PE | 38.8 |
📊 POLYMED shows moderate fundamentals with ROE at 14.2% and ROCE at 18.2%, reflecting fair capital efficiency. EPS of 33.8 ₹ supports profitability, and debt-to-equity ratio of 0.08 indicates a strong balance sheet with minimal leverage. The P/E ratio of 44.2 is higher than the industry average of 38.8, suggesting mild overvaluation. PEG ratio of 1.43 indicates reasonable valuation relative to growth. Dividend yield is modest at 0.23%. PAT declined slightly (89 Cr. → 83.4 Cr.), highlighting earnings pressure. Technical indicators (RSI 60.8, MACD 44.1) show bullish momentum, though trading volumes are below weekly averages.
💰 Ideal Entry Price Zone: 1,450 ₹ – 1,470 ₹, near DMA 50 (1,427 ₹), offering margin of safety.
📈 Long-Term Holding Guidance: POLYMED is suitable for medium-to-long-term holding (3–5 years) given stable fundamentals, low debt, and reasonable PEG ratio. Investors may consider partial profit booking near 1,650–1,680 ₹ (resistance around DMA 200) if valuations stretch without earnings support.
✅ Positive
- Debt-to-equity ratio of 0.08 ensures financial stability.
- PEG ratio of 1.43 indicates fair valuation relative to growth.
- DII holdings increased (+1.76%), reflecting domestic institutional support.
- Technical indicators (RSI 60.8, MACD 44.1) show bullish momentum.
⚠️ Limitation
- P/E (44.2) higher than industry average (38.8), suggesting mild overvaluation.
- Dividend yield modest at 0.23%.
- Quarterly PAT declined from 89 Cr. to 83.4 Cr.
- Trading volume below weekly average, showing reduced liquidity.
📉 Company Negative News
- FII holdings decreased (-3.49%), showing reduced foreign investor confidence.
- Quarterly profit decline highlights earnings pressure.
📈 Company Positive News
- DII holdings increased (+1.76%), reflecting domestic support.
- EPS of 33.8 ₹ supports profitability.
- Debt levels remain very low, enhancing financial stability.
🏭 Industry
- Industry P/E at 38.8 is lower than POLYMED’s 44.2, highlighting mild premium valuation.
- Medical devices and healthcare sector supported by rising demand and innovation.
🔎 Conclusion
POLYMED is moderately strong with fair fundamentals, low debt, and reasonable PEG ratio. Entry near 1,450–1,470 ₹ offers margin of safety. Suitable for medium-to-long-term investors, with profit booking advisable near 1,650–1,680 ₹ if valuations stretch without earnings support.