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PPLPHARMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | PPLPHARMA | Market Cap | 20,186 Cr. | Current Price | 152 ₹ | High / Low | 241 ₹ |
| Stock P/E | 27.4 | Book Value | 58.2 ₹ | Dividend Yield | 0.09 % | ROCE | 12.4 % |
| ROE | 9.74 % | Face Value | 10.0 ₹ | DMA 50 | 171 ₹ | DMA 200 | 190 ₹ |
| Chg in FII Hold | -0.61 % | Chg in DII Hold | 0.79 % | PAT Qtr | 151 Cr. | PAT Prev Qtr | 196 Cr. |
| RSI | 29.1 | MACD | -6.33 | Volume | 23,55,288 | Avg Vol 1Wk | 65,71,847 |
| Low price | 148 ₹ | High price | 241 ₹ | PEG Ratio | 1.23 | Debt to equity | 0.12 |
| 52w Index | 3.70 % | Qtr Profit Var | 27.4 % | EPS | 5.39 ₹ | Industry PE | 29.0 |
📊 Core Financials
- Revenue & Profitability: PAT declined from ₹196 Cr to ₹151 Cr, showing earnings pressure. EPS at ₹5.39 reflects modest profitability.
- Margins: ROE at 9.74% and ROCE at 12.4% are below industry leaders, indicating average efficiency.
- Debt: Debt-to-equity ratio of 0.12 suggests manageable leverage but not entirely debt-free.
- Cash Flow: Moderate cash generation capacity, impacted by profit decline.
💹 Valuation Indicators
- P/E Ratio: 27.4, slightly below industry average of 29.0, suggesting fair valuation.
- P/B Ratio: Current Price ₹152 vs Book Value ₹58.2 → P/B ~2.6, reasonable compared to peers.
- PEG Ratio: 1.23, indicates valuation is aligned with growth prospects.
- Intrinsic Value: CMP near ₹152 appears close to fair value; limited margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in pharmaceutical manufacturing and specialty chemicals.
- Focus on niche pharma segments provides diversification.
- Competitive advantage is moderate, with strong competition from larger pharma players.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Accumulation advisable near ₹148–₹155, closer to 52-week low.
- Long-Term Holding: Suitable for cautious long-term investors; upside potential depends on earnings recovery and margin improvement.
✅ Positive
- Fair valuation compared to industry average.
- PEG ratio indicates balanced growth vs valuation.
- DII holdings increased by 0.79%, showing domestic confidence.
⚠️ Limitation
- ROE and ROCE are relatively weak compared to peers.
- Dividend yield at 0.09% is negligible.
- Stock trading below DMA 50 and DMA 200, indicating bearish trend.
📉 Company Negative News
- Quarterly profit dropped from ₹196 Cr to ₹151 Cr.
- FII holding reduced by 0.61%, showing foreign investor caution.
📈 Company Positive News
- DII holding increased by 0.79%, reflecting domestic institutional support.
- PEG ratio at 1.23 suggests reasonable valuation relative to growth.
🏭 Industry
- Pharma industry P/E at 29.0 indicates sector is moderately valued.
- Industry growth driven by healthcare demand and exports, but competitive pressures remain high.
🔎 Conclusion
PPL Pharma shows fair valuation but faces challenges with declining profits and average return metrics. The stock is near its 52-week low, offering a cautious entry point for long-term investors. Improvement in profitability and margins will be key to sustaining growth. Best suited for investors with moderate risk appetite seeking exposure to the pharma sector.
Would you like me to also add a compact HTML table comparing PPL Pharma’s valuation metrics (P/E, P/B, ROE, ROCE) against the pharma industry average for sharper context?