⚠ 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.
PPLPHARMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | PPLPHARMA | Market Cap | 19,021 Cr. | Current Price | 143 ₹ | High / Low | 241 ₹ |
| Stock P/E | 25.8 | Book Value | 58.2 ₹ | Dividend Yield | 0.10 % | ROCE | 12.4 % |
| ROE | 9.74 % | Face Value | 10.0 ₹ | DMA 50 | 159 ₹ | DMA 200 | 181 ₹ |
| Chg in FII Hold | -0.61 % | Chg in DII Hold | 0.79 % | PAT Qtr | 151 Cr. | PAT Prev Qtr | 196 Cr. |
| RSI | 35.1 | MACD | -5.42 | Volume | 29,93,700 | Avg Vol 1Wk | 46,37,699 |
| Low price | 135 ₹ | High price | 241 ₹ | PEG Ratio | 1.16 | Debt to equity | 0.12 |
| 52w Index | 8.04 % | Qtr Profit Var | 27.4 % | EPS | 5.39 ₹ | Industry PE | 27.6 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT declined to ₹151 Cr. from ₹196 Cr. (-27.4%). ROE (9.74%) and ROCE (12.4%) are modest, reflecting average efficiency and profitability.
- Debt & Liquidity: Debt-to-equity at 0.12 indicates low leverage, ensuring balance sheet stability.
- Valuation: P/E of 25.8 is slightly below industry average (27.6), suggesting fair valuation. P/B ~2.5 indicates moderate premium pricing. PEG ratio (1.16) reflects reasonable growth-adjusted valuation.
- Technical Indicators: RSI at 35.1 indicates oversold conditions; MACD at -5.42 signals bearish trend. Current price ₹143 is below DMA 50 (₹159) and DMA 200 (₹181), showing weakness.
🏢 Business Model & Competitive Advantage
- PPL Pharma operates in pharmaceuticals, focusing on generic formulations and specialty medicines.
- Competitive advantage lies in diversified product portfolio and presence in domestic and export markets, though profitability remains under pressure.
💡 Entry Zone Recommendation
- Entry zone: ₹135–₹145, near support levels.
- Attractive for long-term investors only if profitability stabilizes; currently suitable for cautious accumulation.
📈 Long-Term Holding Guidance
- Moderately suitable for long-term holding due to fair valuation and low debt.
- Upside potential tied to pharmaceutical demand and expansion in generics and specialty drugs.
✅ Positive
- Low debt-to-equity ratio (0.12).
- Fair valuation with P/E (25.8) below industry average (27.6).
- DII holdings increased (+0.79%).
⚠️ Limitation
- Weak ROE (9.74%) and ROCE (12.4%).
- Dividend yield negligible at 0.10%.
- Stock trading below DMA 50 and DMA 200, showing bearish trend.
📉 Company Negative News
- Quarterly PAT declined from ₹196 Cr. to ₹151 Cr.
- Bearish technical indicators (MACD negative, RSI oversold).
- FII holdings reduced (-0.61%).
📈 Company Positive News
- DII holdings increased (+0.79%).
- PEG ratio (1.16) indicates reasonable growth-adjusted valuation.
- Strong trading volumes show investor interest.
🏭 Industry
- Pharmaceutical industry P/E at 27.6, slightly higher than PPL Pharma’s valuation.
- Sector growth driven by rising healthcare demand, generics expansion, and global pharmaceutical exports.
🔎 Conclusion
- PPL Pharma shows fair valuation and low debt but faces weak profitability and bearish technicals.
- Entry near ₹135–₹145 is suitable for cautious investors; long-term holding recommended only if earnings stabilize and margins improve.