PTCIL - Fundamental Analysis: Financial Health & Valuation

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

Fundamental Rating: 3.5

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📊 Fundamental Analysis Report

• Stock Code: PTCIL
• Market Cap: ₹25,878 Cr
• Current Price: ₹17,270
• 52W High/Low: ₹17,995 / ₹9,756
• EPS: ₹27.0
• Stock P/E: 640 ❗ (Extremely Overvalued)
• Book Value: ₹888 | P/B Ratio: ~19.5 ❗
• ROE: 3.59% | ROCE: 5.26% 🔻
• PEG Ratio: 13.2 ❗ (Overvalued vs Growth)
• Debt to Equity: 0.01 🟢 (Very Low Debt)
• Dividend Yield: 0.00% 🚫
• Quarterly PAT: ₹8.18 Cr (↓45.8%)
• RSI: 62.1 | MACD: 505 📈

✅ Positive

• Debt-free structure offers financial flexibility and low risk exposure.
• Strong price momentum with MACD and RSI indicating bullish trend.
• Quarterly profit growth of 194% YoY suggests operational turnaround.
• Price trading above DMA 50 and 200 supports technical strength.

⚠️ Limitation

• Extremely high P/E (640) and PEG (13.2) indicate severe overvaluation.
• Low ROE and ROCE reflect weak capital efficiency and profitability.
• No dividend payout limits income potential for investors.
• Trading volume significantly below weekly average, suggesting reduced liquidity.

📉 Company Negative News

• Sequential drop in PAT from ₹15.1 Cr to ₹8.18 Cr raises concerns about earnings consistency.

📈 Company Positive News

• Stock has surged 91.2% over the past year, reflecting strong investor interest.
• Positive DII sentiment (+0.78%) indicates domestic institutional confidence.

🏦 Industry

• PTCIL operates in a niche segment with limited direct competition.
• Industry P/E of 30.1 is far below PTCIL’s, suggesting valuation mismatch.
• Sector growth depends on innovation, IP monetization, and global licensing opportunities.

🧭 Conclusion

• Entry Zone: ₹14,800–₹15,500 (closer to DMA 50 and RSI neutral)
• Long-Term View: High valuation and weak fundamentals warrant caution. Suitable only for speculative investors with high risk appetite.