PPLPHARMA - Fundamental Analysis: Financial Health & Valuation

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

Fundamental Rating: 3.8

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📊 Fundamental Analysis Report

• Stock Code: PPLPHARMA
• Market Cap: ₹26,552 Cr
• Current Price: ₹200
• 52W High/Low: ₹308 / ₹180
• EPS: ₹5.42
• Stock P/E: 36.9 vs Industry P/E: 33.1 ❗
• PEG Ratio: 1.66 🟡 (Slightly Overvalued)
• Book Value: ₹56.2 | P/B Ratio: ~3.56 ❗
• ROE: 9.74% | ROCE: 12.4% 🟡
• Debt to Equity: 0.17 🟢 (Low Leverage)
• Dividend Yield: 0.07% 🚫
• Quarterly PAT: ₹113 Cr (↓59.2%)
• RSI: 55.1 | MACD: 1.52 📈

✅ Positive

• Low debt-to-equity ratio supports financial stability and expansion potential.
• Price trading near DMA 50 and 200 suggests technical support and consolidation.
• Positive DII sentiment (+0.64%) reflects domestic institutional confidence.
• Strong volume activity indicates active investor interest.

⚠️ Limitation

• High P/E and PEG ratios suggest valuation may be stretched relative to growth.
• ROE and ROCE are moderate, not industry-leading.
• Dividend yield is negligible, limiting income potential.
• FII holding declined by 0.59%, indicating cautious foreign sentiment.

📉 Company Negative News

• Sequential drop in PAT from ₹277 Cr to ₹113 Cr raises concerns about earnings volatility.

📈 Company Positive News

• Quarterly profit variation of +32.7% YoY shows signs of recovery.
• Expansion in domestic and export formulations continues to support long-term growth.

🏦 Industry

• PPLPHARMA operates in the pharmaceutical sector, benefiting from rising healthcare demand.
• Industry P/E of 33.1 aligns closely with PPLPHARMA’s, suggesting fair sector valuation.
• Sector growth supported by innovation, generics, and global regulatory approvals.

🧭 Conclusion

• Entry Zone: ₹185–₹195 (near support and RSI neutral)
• Long-Term View: Moderate fundamentals and sector tailwinds make PPLPHARMA a cautious long-term hold. Accumulate selectively on dips.