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UNITDSPR - Fundamental Analysis: Financial Health & Valuation

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Rating: 4.2

Last Updated Time : 02 Feb 26, 01:19 pm

Fundamental Rating: 4.2

Stock Code UNITDSPR Market Cap 97,048 Cr. Current Price 1,335 ₹ High / Low 1,645 ₹
Stock P/E 55.5 Book Value 111 ₹ Dividend Yield 0.90 % ROCE 26.3 %
ROE 20.0 % Face Value 2.00 ₹ DMA 50 1,373 ₹ DMA 200 1,390 ₹
Chg in FII Hold -0.25 % Chg in DII Hold 0.46 % PAT Qtr 536 Cr. PAT Prev Qtr 494 Cr.
RSI 44.3 MACD -17.6 Volume 5,37,626 Avg Vol 1Wk 10,84,432
Low price 1,270 ₹ High price 1,645 ₹ PEG Ratio 3.64 Debt to equity 0.05
52w Index 17.2 % Qtr Profit Var 2.70 % EPS 23.5 ₹ Industry PE 31.4

📊 Core Financials

  • Revenue & Profitability: Quarterly PAT rose from 494 Cr. to 536 Cr. (2.7% growth). EPS at 23.5 ₹ indicates steady earnings.
  • Margins & Returns: Strong ROCE (26.3%) and ROE (20%) reflect efficient capital usage and profitability.
  • Debt Ratios: Debt-to-equity at 0.05 shows negligible leverage, ensuring financial stability.
  • Cash Flows: Healthy operating cash flows inferred from consistent profit growth and low debt.

💹 Valuation Indicators

  • P/E Ratio: 55.5 vs industry average of 31.4 → premium valuation.
  • P/B Ratio: Current Price / Book Value ≈ 12.0 → significantly above fair value.
  • PEG Ratio: 3.64 → suggests overvaluation relative to growth.
  • Intrinsic Value: Current price (1,335 ₹) appears stretched compared to fundamentals.

🏢 Business Model & Competitive Advantage

  • Strong brand presence in consumer goods with diversified product portfolio.
  • Efficient capital allocation and high return ratios provide competitive edge.
  • Low debt enhances resilience against market volatility.

📈 Entry Zone & Long-Term Guidance

  • Entry Zone: Attractive accumulation range between 1,270 ₹ – 1,300 ₹ (near support levels).
  • Long-Term Holding: Suitable for investors seeking stable returns, but valuation risks suggest staggered buying.

✅ Positive

  • High ROCE and ROE indicating strong efficiency.
  • Low debt-to-equity ratio ensures financial safety.
  • Consistent profit growth and dividend yield.

⚠️ Limitation

  • Premium valuation compared to industry peers.
  • PEG ratio signals overvaluation relative to growth.
  • Decline in FII holdings (-0.25%) shows cautious foreign sentiment.

📉 Company Negative News

  • Stock trading below 50 DMA and 200 DMA, indicating weak momentum.
  • RSI at 44.3 and negative MACD (-17.6) suggest bearish technical outlook.

📈 Company Positive News

  • Quarterly PAT growth of 2.7% shows resilience.
  • DII holdings increased (+0.46%), reflecting domestic institutional confidence.

🏭 Industry

  • Industry P/E at 31.4 indicates sector trades at lower multiples.
  • Consumer goods sector remains defensive with steady demand.
  • UNITDSPR commands premium due to brand strength and profitability.

🔎 Conclusion

UNITDSPR demonstrates strong fundamentals with high efficiency and low debt, but trades at a significant premium compared to industry peers. Entry is advisable near 1,270 ₹ – 1,300 ₹ for long-term investors, with staggered accumulation to mitigate valuation risks. Overall, the company remains financially healthy and strategically positioned, though short-term technicals suggest caution.

Would you like me to also prepare a technical chart-based entry strategy (support/resistance zones with RSI/MACD signals) to complement this fundamental analysis?

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