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VIJAYA - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.8

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

Fundamental Rating: 3.8

Stock Code VIJAYA Market Cap 10,113 Cr. Current Price 981 ₹ High / Low 1,192 ₹
Stock P/E 67.9 Book Value 82.3 ₹ Dividend Yield 0.20 % ROCE 20.2 %
ROE 18.1 % Face Value 1.00 ₹ DMA 50 1,001 ₹ DMA 200 1,005 ₹
Chg in FII Hold -3.17 % Chg in DII Hold 3.26 % PAT Qtr 42.7 Cr. PAT Prev Qtr 38.8 Cr.
RSI 47.0 MACD -14.6 Volume 39,155 Avg Vol 1Wk 1,28,780
Low price 740 ₹ High price 1,192 ₹ PEG Ratio 10.3 Debt to equity 0.40
52w Index 53.3 % Qtr Profit Var 7.42 % EPS 14.4 ₹ Industry PE 36.0

📊 Core Financials

  • Revenue & Profitability: Quarterly PAT improved from 38.8 Cr. to 42.7 Cr. (+7.42%), showing steady growth momentum.
  • Margins & Returns: ROCE at 20.2% and ROE at 18.1% highlight strong efficiency and profitability.
  • Debt Ratios: Debt-to-equity at 0.40 indicates moderate leverage, manageable but worth monitoring.
  • Cash Flows: Dividend yield of 0.20% is modest, suggesting reinvestment focus rather than high shareholder payouts.

💹 Valuation Indicators

  • P/E Ratio: 67.9 vs industry average of 36.0 → trades at a significant premium.
  • P/B Ratio: Current Price / Book Value ≈ 11.9 → well above intrinsic value.
  • PEG Ratio: 10.3 → signals overvaluation relative to growth.
  • Intrinsic Value: Current price (981 ₹) appears stretched compared to fundamentals.

🏢 Business Model & Competitive Advantage

  • Strong presence in healthcare diagnostics with brand recognition and expanding network.
  • High efficiency ratios (ROCE, ROE) provide competitive edge.
  • Moderate debt levels allow growth but require careful monitoring.

📈 Entry Zone & Long-Term Guidance

  • Entry Zone: Attractive accumulation range between 940 ₹ – 960 ₹, near DMA support levels.
  • Long-Term Holding: Suitable for investors seeking exposure to healthcare growth, but staggered buying recommended due to premium valuation.

✅ Positive

  • Strong ROCE and ROE highlight efficiency.
  • Quarterly PAT growth (+7.42%) shows steady earnings momentum.
  • DII holdings increased (+3.26%), reflecting strong domestic institutional confidence.

⚠️ Limitation

  • High P/E ratio (67.9) compared to industry average.
  • PEG ratio of 10.3 signals overvaluation relative to growth.
  • Moderate debt-to-equity ratio (0.40) requires monitoring.

📉 Company Negative News

  • Stock trading below both 50 DMA (1,001 ₹) and 200 DMA (1,005 ₹), indicating weak momentum.
  • RSI at 47.0 and negative MACD (-14.6) suggest bearish technical outlook.
  • FII holdings decreased (-3.17%), showing reduced foreign investor confidence.

📈 Company Positive News

  • Quarterly PAT improved sequentially from 38.8 Cr. to 42.7 Cr.
  • DII holdings increased (+3.26%), supporting domestic confidence.

🏭 Industry

  • Industry P/E at 36.0 indicates sector trades at lower multiples.
  • Healthcare diagnostics sector benefits from rising demand and preventive care trends.
  • VIJAYA trades at a premium, reflecting brand strength and growth expectations.

🔎 Conclusion

VIJAYA demonstrates strong fundamentals with high efficiency and steady profit growth, but trades at a significant premium compared to industry peers. Entry is advisable near 940 ₹ – 960 ₹ for long-term investors, with staggered accumulation to mitigate valuation risks. Overall, the company remains financially healthy and strategically positioned in the healthcare diagnostics sector, though valuation signals caution.

I can also highlight support and resistance levels with RSI/MACD signals to refine entry timing for VIJAYA if you’d like.

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