WOCKPHARMA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.8

Wockhardt Ltd. (WOCKPHARMA) is a once-strong name in the pharmaceuticals space now struggling to regain its footing. While the company has shown technical strength in stock price movement, underlying financials raise concern. Let’s dive in.

🧾 Core Financials Analysis

Return Metrics

ROCE: 3.75%, ROE: -1.22% — very weak performance; ROE is negative, signaling shareholder value erosion

EPS: -₹2.89 — negative earnings per share confirms net loss

Profit Trends

PAT Q-o-Q: ₹14 Cr → -₹25 Cr — reversal into losses

Profit Variation: +80.4% (YoY) — misleading due to base effect; actual sustainability is lacking

Balance Sheet Health

Debt-to-Equity: 0.46 — manageable debt level, not excessive for pharma sector

Dividend Yield: 0.00% — no income payout, likely due to losses and reinvestment requirements

📊 Valuation Snapshot

Metric Value Commentary

P/E Ratio Not applicable Loss-making status makes this metric unusable

P/B Ratio ~6.33 High premium over book value; difficult to justify without profits

PEG Ratio Not provided No viable growth rate available due to inconsistent earnings

The valuation is likely driven by speculation, turnaround hopes, or technical momentum rather than financial fundamentals.

🧪 Business Model & Sector Positioning

Focus Areas: Complex injectables, generics, biosimilars, and some domestic hospital operations

Strengths

Presence in regulated markets like the US, UK

Favorable developments in biotech and long-term IP pipeline

Challenges

Persistent losses

Weak margin profile and capital inefficiency

Competitive sector dynamics eroding pricing power

📉 Technical Indicators

RSI: 49.1 — neutral zone; neither oversold nor overbought

MACD: 12.7 — bullish momentum may signal short-term upside

DMA Status

Price above both 50-DMA (₹1,644) and 200-DMA (₹1,383) — confirms uptrend

52-week Index: 83.3% — strong recovery from lows (₹835), now approaching resistance

🎯 Entry Zone & Investment Perspective

Suggested Entry: ₹1,620–₹1,680 — just below current levels and near 50-DMA

Long-Term Target (12–18 months): ₹1,850–₹1,950 — speculative upside if profitability rebounds

Investor Suitability

Turnaround or high-risk investors betting on sector tailwinds

Not ideal for conservative or income-seeking portfolios due to earnings volatility and zero dividend

Keep a tight risk management framework if accumulating

Want to explore margin improvement scenarios or compare Wockhardt’s turnaround potential against peers like Cadila, Biocon, or Dr. Reddy’s? I can help build that roadmap — just say the word. 🧬📊

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