POLYMED - Fundamental Analysis: Financial Health & Valuation

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

Fundamental Rating: 3.8

📊 Core Financials Analysis

Profitability

ROE: 14.2% and ROCE: 18.2% — respectable, though not elite for a mid-cap healthcare company.

EPS: ₹34.2 — solid earnings, with a 21.6% quarterly profit growth indicating operational momentum.

PAT Qtr: ₹87.9 Cr vs ₹86.7 Cr — stable performance with consistent bottom-line delivery.

Balance Sheet & Cash Flow

Debt-to-equity: 0.06 — extremely low leverage, a strong positive for financial resilience.

Dividend Yield: 0.17% — minimal, suggesting reinvestment focus.

Cash flows are stable, supported by recurring demand for medical disposables and export contracts.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 60.3 Overvalued vs industry PE of 50.1

P/B Ratio ~7.6 High, but justified by strong ROE

PEG Ratio 1.95 Fair to slightly expensive

Intrinsic Value ₹1,850–₹1,950 (est.) Current price slightly above fair value

🧠 Business Model & Competitive Edge

Company Profile: Poly Medicure Ltd (POLYMED) is a leading manufacturer of medical devices and disposables, with a strong export footprint across 100+ countries.

Strengths

Diversified product portfolio in IV therapy, dialysis, oncology, and respiratory care.

Strong R&D and backward integration in plastics and molding.

High entry barriers due to regulatory approvals and clinical validation.

Challenges

High valuation multiples not fully backed by growth.

Margins susceptible to raw material price fluctuations and currency volatility.

📈 Technical & Sentiment Overview

RSI: 55.6 — neutral to mildly bullish.

MACD: -4.09 — bearish crossover, short-term caution.

DMA 50 & 200: Price hovering near both — trend indecisive.

Volume: Above weekly average — active investor interest.

FII/DII Holding: Slight decline — institutional sentiment cautious.

💡 Entry Zone & Long-Term Guidance

Suggested Entry Range: ₹1,850–₹1,950 — near intrinsic value and technical support.

Holding Strategy

Long-term hold recommended for investors seeking exposure to healthcare manufacturing.

Price targets for FY27 range from ₹2,750 to ₹3,594 based on projected earnings

1

2

.

Monitor export growth, regulatory approvals, and margin trends.

POLYMED is a niche healthcare play with global reach and strong fundamentals, but current valuations demand selectivity. If you're building a portfolio of defensive, innovation-driven companies, this one deserves a close look. Let me know if you'd like a peer comparison with Opto Circuits or Narayana Health.

1

stocks-buy.com

2

dailybulls.in

Edit in a page