POLYMED - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | POLYMED | Market Cap | 16,190 Cr. | Current Price | 1,598 ₹ | High / Low | 2,456 ₹ |
| Stock P/E | 46.7 | Book Value | 285 ₹ | Dividend Yield | 0.22 % | ROCE | 18.2 % |
| ROE | 14.2 % | Face Value | 5.00 ₹ | DMA 50 | 1,489 ₹ | DMA 200 | 1,682 ₹ |
| Chg in FII Hold | -3.49 % | Chg in DII Hold | 1.76 % | PAT Qtr | 83.4 Cr. | PAT Prev Qtr | 89.0 Cr. |
| RSI | 58.8 | MACD | 21.8 | Volume | 1,34,536 | Avg Vol 1Wk | 1,26,739 |
| Low price | 1,182 ₹ | High price | 2,456 ₹ | PEG Ratio | 1.51 | Debt to equity | 0.08 |
| 52w Index | 32.7 % | Qtr Profit Var | -2.04 % | EPS | 33.8 ₹ | Industry PE | 33.0 |
📊 Financial Overview: Polymed has a market cap of ₹16,190 Cr with a current price of ₹1,598. The 52-week range is ₹2,456–1,182. Profitability is moderate with ROE at 14.2% and ROCE at 18.2%. Debt-to-equity ratio of 0.08 indicates low leverage. PAT stood at ₹83.4 Cr compared to ₹89 Cr in the previous quarter, showing slight decline. EPS is ₹33.8, reflecting decent earnings capacity.
💰 Valuation Indicators: Stock P/E is 46.7, higher than the industry average of 33.0, suggesting overvaluation. Book value is ₹285, giving a P/B ratio of ~5.6. PEG ratio of 1.51 indicates valuation is stretched relative to growth. Dividend yield of 0.22% provides minimal shareholder returns. Intrinsic value appears lower than current price, limiting margin of safety.
🏥 Business Model & Competitive Advantage: Polymed operates in medical devices and consumables, serving hospitals and healthcare providers. Its competitive advantage lies in product diversification, strong distribution, and rising demand for healthcare solutions. Low debt and stable margins strengthen financial health, though valuation and profit decline remain concerns.
📈 Entry Zone & Long-Term Guidance: The stock looks slightly overvalued at current levels. A better entry zone would be ₹1,450–1,500, closer to support levels. Long-term holding looks favorable given healthcare demand and product strength, but investors should monitor profitability and valuation metrics.
Positive
- 📈 [Healthcare Demand](ca://s?q=Polymed_healthcare_demand): Rising demand for medical devices supports growth.
- 🏦 [Low Debt](ca://s?q=Polymed_debt_to_equity): Debt-to-equity ratio of 0.08 shows financial stability.
- 📊 [DII Support](ca://s?q=Polymed_DII_holdings): DII holdings increased by +1.76%.
Limitation
- ⚖️ [High Valuation](ca://s?q=Polymed_PE_ratio): P/E of 46.7 compared to industry average of 33.0.
- 📉 [Profit Decline](ca://s?q=Polymed_quarterly_profit): PAT fell from ₹89 Cr to ₹83.4 Cr QoQ.
- 💸 [Low Dividend Yield](ca://s?q=Polymed_dividend_policy): Dividend yield of 0.22% offers minimal returns.
Company Negative News
- 📉 [FII Exit](ca://s?q=Polymed_FII_holdings): FII holdings decreased by -3.49%.
- 📊 [Profit Variation](ca://s?q=Polymed_profit_variation): Quarterly profit variation at -2.04% shows instability.
Company Positive News
- 📈 [DII Support](ca://s?q=Polymed_DII_holdings): DII holdings increased by +1.76%.
- 📊 [Technical Strength](ca://s?q=Polymed_DMA_levels): Current price above DMA 50 (₹1,489) and DMA 200 (₹1,682) indicates bullish support.
Industry
- 🏥 [Medical Devices Sector](ca://s?q=India_medical_devices_industry): Industry PE at 33.0, showing moderate valuation compared to Polymed.
- 📊 [Healthcare Growth](ca://s?q=India_healthcare_growth): Rising demand for medical consumables supports sector expansion.
Conclusion
⚖️ Polymed’s fundamentals are decent with moderate profitability, low debt, and strong presence in medical devices. However, high valuation, profit decline, and low dividend yield limit attractiveness. Entry is advisable near ₹1,450–1,500 for better risk-reward. Long-term holding looks favorable if healthcare demand sustains and profitability improves.