⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
POLYMED - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | POLYMED | Market Cap | 15,282 Cr. | Current Price | 1,505 ₹ | High / Low | 2,938 ₹ |
| Stock P/E | 43.8 | Book Value | 285 ₹ | Dividend Yield | 0.23 % | ROCE | 18.2 % |
| ROE | 14.2 % | Face Value | 5.00 ₹ | DMA 50 | 1,737 ₹ | DMA 200 | 1,965 ₹ |
| Chg in FII Hold | -0.36 % | Chg in DII Hold | 0.31 % | PAT Qtr | 89.0 Cr. | PAT Prev Qtr | 87.9 Cr. |
| RSI | 27.4 | MACD | -79.1 | Volume | 69,222 | Avg Vol 1Wk | 1,10,694 |
| Low price | 1,451 ₹ | High price | 2,938 ₹ | PEG Ratio | 1.42 | Debt to equity | 0.08 |
| 52w Index | 3.61 % | Qtr Profit Var | 2.10 % | EPS | 34.4 ₹ | Industry PE | 33.5 |
📊 Core Financials
- Revenue & Profitability: PAT grew slightly from ₹87.9 Cr to ₹89 Cr, showing stable earnings. EPS at ₹34.4 indicates decent profitability.
- Margins: ROE at 14.2% and ROCE at 18.2% reflect moderate efficiency, above average but not industry-leading.
- Debt: Debt-to-equity ratio of 0.08 highlights a low leverage structure, ensuring financial stability.
- Cash Flow: Strong operating cash flows supported by consistent profits and low debt.
💹 Valuation Indicators
- P/E Ratio: 43.8, higher than industry average of 33.5, suggesting premium valuation.
- P/B Ratio: Current Price ₹1505 vs Book Value ₹285 → P/B ~5.3, relatively expensive compared to assets.
- PEG Ratio: 1.42, indicates valuation is somewhat aligned with growth prospects but still on the higher side.
- Intrinsic Value: CMP appears stretched; intrinsic value likely lower, offering limited margin of safety.
🏢 Business Model & Competitive Advantage
- Leading manufacturer of medical devices and disposables with diversified product portfolio.
- Strong presence in domestic and export markets, catering to hospitals and healthcare providers.
- Competitive advantage lies in specialized product range and regulatory approvals, though competition in global medtech remains intense.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹1450–₹1520, closer to 52-week low.
- Long-Term Holding: Suitable for investors seeking exposure to healthcare growth; long-term potential strong, but valuations demand cautious entry.
✅ Positive
- Low debt-to-equity ratio ensures financial safety.
- Stable quarterly profit growth (₹87.9 Cr → ₹89 Cr).
- DII holdings increased by 0.31%, showing domestic confidence.
⚠️ Limitation
- High P/E and P/B ratios compared to industry peers.
- Dividend yield at 0.23% is modest.
- Stock trading below DMA 50 and DMA 200, indicating bearish trend.
📉 Company Negative News
- FII holding reduced by 0.36%, showing foreign investor caution.
- RSI at 27.4 and MACD at -79.1 indicate oversold momentum and weak technicals.
📈 Company Positive News
- Quarterly profit growth of 2.10% shows resilience.
- DII holding increased, reflecting domestic institutional support.
🏭 Industry
- Medical devices industry is growing steadily with rising healthcare demand.
- Industry P/E at 33.5 highlights moderate valuation compared to Polymed’s premium.
🔎 Conclusion
Polymed is a fundamentally strong company with stable profits, low debt, and a diversified medical device portfolio. However, valuations are stretched with high P/E and P/B ratios. The stock is near its 52-week low, offering a cautious entry zone around ₹1450–₹1520. Long-term investors can consider accumulating gradually, banking on healthcare sector growth, while short-term upside may remain limited due to weak technical indicators.
Would you like me to also prepare a compact HTML table comparing Polymed’s valuation metrics (P/E, P/B, ROE, ROCE) against the industry average for sharper context?