PPLPHARMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | PPLPHARMA | Market Cap | 23,352 Cr. | Current Price | 176 ₹ | High / Low | 221 ₹ |
| Stock P/E | 30.2 | Book Value | 58.2 ₹ | Dividend Yield | 0.08 % | ROCE | 12.1 % |
| ROE | 10.4 % | Face Value | 10.0 ₹ | DMA 50 | 163 ₹ | DMA 200 | 173 ₹ |
| Chg in FII Hold | 0.51 % | Chg in DII Hold | -0.07 % | PAT Qtr | 313 Cr. | PAT Prev Qtr | 151 Cr. |
| RSI | 60.5 | MACD | 5.84 | Volume | 15,61,862 | Avg Vol 1Wk | 24,22,970 |
| Low price | 132 ₹ | High price | 221 ₹ | PEG Ratio | 0.25 | Debt to equity | 0.12 |
| 52w Index | 48.8 % | Qtr Profit Var | 13.0 % | EPS | 5.27 ₹ | Industry PE | 30.5 |
📊 Financial Overview: PPL Pharma has a market cap of ₹23,352 Cr with a current price of ₹176. The 52-week range is ₹221–132. Profitability is moderate with ROE at 10.4% and ROCE at 12.1%. Debt-to-equity ratio of 0.12 indicates low leverage. PAT stood at ₹313 Cr compared to ₹151 Cr in the previous quarter, showing strong growth. EPS is ₹5.27, reflecting modest earnings capacity.
💰 Valuation Indicators: Stock P/E is 30.2, in line with the industry average of 30.5, suggesting fair valuation. Book value is ₹58.2, giving a P/B ratio of ~3.02. PEG ratio of 0.25 indicates attractive valuation relative to growth. Dividend yield of 0.08% provides negligible shareholder returns. Intrinsic value appears close to current price, offering limited margin of safety.
💊 Business Model & Competitive Advantage: PPL Pharma operates in pharmaceuticals, focusing on generics and specialty medicines. Its competitive advantage lies in strong product portfolio and growing demand for affordable healthcare solutions. Improving profits and low debt strengthen financial health, though dividend yield and modest returns remain concerns.
📈 Entry Zone & Long-Term Guidance: The stock looks fairly valued at current levels. A good entry zone is ₹160–170, near support levels. Long-term holding looks favorable given profit growth and attractive PEG ratio, but investors should monitor margins and institutional sentiment.
Positive
- 📈 [Profit Growth](ca://s?q=PPL_Pharma_quarterly_profit): PAT rose from ₹151 Cr to ₹313 Cr QoQ.
- 🏦 [Low Debt](ca://s?q=PPL_Pharma_debt_to_equity): Debt-to-equity ratio of 0.12 shows financial stability.
- 📊 [Attractive PEG](ca://s?q=PPL_Pharma_PEG_ratio): PEG ratio of 0.25 highlights undervaluation relative to growth.
Limitation
- ⚖️ [Low Dividend Yield](ca://s?q=PPL_Pharma_dividend_policy): Dividend yield of 0.08% offers minimal returns.
- 📉 [Moderate Returns](ca://s?q=PPL_Pharma_ROE_ROCE): ROE at 10.4% and ROCE at 12.1% are below top peers.
- 📊 [High P/B Ratio](ca://s?q=PPL_Pharma_PB_ratio): P/B of ~3.02 indicates valuation premium.
Company Negative News
- 📉 [DII Exit](ca://s?q=PPL_Pharma_DII_holdings): DII holdings decreased by -0.07%.
Company Positive News
- 📈 [FII Support](ca://s?q=PPL_Pharma_FII_holdings): FII holdings increased by +0.51%.
- 📊 [Profit Surge](ca://s?q=PPL_Pharma_PAT_growth): Quarterly profit growth of 13% indicates strong momentum.
Industry
- 💊 [Pharma Sector](ca://s?q=India_pharma_industry): Industry PE at 30.5, showing moderate valuation compared to PPL Pharma.
- 📊 [Healthcare Demand](ca://s?q=India_healthcare_growth): Rising demand for generics and specialty medicines supports sector expansion.
Conclusion
⚖️ PPL Pharma’s fundamentals are decent with improving profits, low debt, and attractive PEG ratio. However, low dividend yield and moderate return ratios limit attractiveness. Entry is advisable near ₹160–170 for better risk-reward. Long-term holding looks favorable if profit growth sustains and margins improve.