POLYMED - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.0

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📊 Fundamental Analysis Report

• Stock Code: POLYMED
• Market Cap: ₹20,258 Cr
• Current Price: ₹1,999
• 52W High/Low: ₹3,358 / ₹1,821
• EPS: ₹34.2
• Stock P/E: 58.4 vs Industry P/E: 50.6 ❗
• PEG Ratio: 1.89 🟡 (Slightly Overvalued)
• Book Value: ₹271 | P/B Ratio: ~7.38 ❗
• ROE: 14.2% | ROCE: 18.2% 🔶
• Debt to Equity: 0.06 🟢 (Very Low Debt)
• Dividend Yield: 0.18% 🚫
• Quarterly PAT: ₹87.9 Cr (↑1.4%)
• RSI: 59.0 | MACD: 0.76 📈

✅ Positive

• Low debt-to-equity ratio enhances financial flexibility and reduces risk.
• Consistent quarterly profit growth with 21.6% YoY variation.
• Price trading above DMA 50 and near DMA 200 indicates technical support.
• Strong DII interest (+1.81%) reflects domestic institutional confidence.

⚠️ Limitation

• High P/E and PEG ratios suggest valuation may be stretched relative to growth.
• P/B ratio above 7 may deter value-focused investors.
• Dividend yield is minimal, offering limited income potential.
• FII holding declined by 1.64%, indicating cautious foreign sentiment.

📉 Company Negative News

• Stock has corrected ~40% from its 52-week high, reflecting valuation pressure.

📈 Company Positive News

• Quarterly PAT improved from ₹86.7 Cr to ₹87.9 Cr, showing operational stability.
• Strong volume activity above weekly average suggests rising investor interest.
• Expansion in medical devices and export markets continues to support long-term growth.

🏦 Industry

• POLYMED operates in the healthcare and medical devices sector.
• Industry P/E of 50.6 reflects high growth expectations and innovation-driven valuations.
• Sector benefits from rising global healthcare demand and regulatory tailwinds.

🧭 Conclusion

• Entry Zone: ₹1,920–₹1,980 (near support and RSI neutral)
• Long-Term View: Strong fundamentals and sector tailwinds make POLYMED a promising long-term hold. Accumulate gradually on dips.