WOCKPHARMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | WOCKPHARMA | Market Cap | 22,677 Cr. | Current Price | 1,396 ₹ | High / Low | 1,870 ₹ |
| Stock P/E | 113 | Book Value | 178 ₹ | Dividend Yield | 0.00 % | ROCE | 4.40 % |
| ROE | -0.53 % | Face Value | 5.00 ₹ | DMA 50 | 1,343 ₹ | DMA 200 | 1,367 ₹ |
| Chg in FII Hold | 0.09 % | Chg in DII Hold | 0.41 % | PAT Qtr | 38.0 Cr. | PAT Prev Qtr | 54.0 Cr. |
| RSI | 56.4 | MACD | 35.4 | Volume | 5,24,780 | Avg Vol 1Wk | 5,04,674 |
| Low price | 1,087 ₹ | High price | 1,870 ₹ | PEG Ratio | 4.67 | Debt to equity | 0.76 |
| 52w Index | 39.4 % | Qtr Profit Var | 273 % | EPS | 11.8 ₹ | Industry PE | 30.1 |
📊 Financials: WOCKPHARMA shows weak fundamentals with ROCE at 4.40% and negative ROE (-0.53%), reflecting poor capital efficiency. Debt-to-equity ratio is relatively high at 0.76, adding financial risk. EPS of ₹11.8 provides a base for earnings, but quarterly PAT declined (₹54 Cr → ₹38 Cr), highlighting earnings pressure.
💹 Valuation: Current P/E of 113 is far above industry average (30.1), suggesting steep overvaluation. PEG ratio of 4.67 indicates growth is priced expensively. P/B ratio (~7.8) is stretched relative to book value. Dividend yield is 0.00%, offering no income support.
🏢 Business Model & Advantage: WOCKPHARMA operates in pharmaceuticals, benefiting from product diversification and institutional support. Competitive advantage is limited by weak profitability and high leverage, though brand presence provides some resilience.
📈 Entry Zone: Safer accumulation near ₹1,250–₹1,300 (close to DMA 200 support). Current price (₹1,396) is above fair entry, with resistance near ₹1,500–₹1,550.
⏳ Long-Term Holding: High-risk candidate. Suitable only for short-to-medium horizon (1–2 years) with strict monitoring of ROE/ROCE improvement. Long-term holding not advisable unless fundamentals improve significantly.
Positive
- EPS of ₹11.8 provides earnings visibility
- DII holdings increased (+0.41%)
- FII holdings increased (+0.09%)
- Quarterly profit variation (+273%) highlights operational improvement compared to prior weak quarters
Limitation
- High P/E (113 vs industry 30.1)
- PEG ratio of 4.67 signals expensive valuation
- Weak ROE (-0.53%) and ROCE (4.40%)
- Debt-to-equity ratio of 0.76
- No dividend yield
Company Negative News
- Quarterly PAT declined from ₹54 Cr to ₹38 Cr
- Profitability remains inconsistent despite revenue base
Company Positive News
- Quarterly profit variation (+273%) shows operational improvement
- Institutional support from both FII and DII holdings
Industry
- Industry P/E at 30.1 reflects moderate sector valuation
- WOCKPHARMA trades at a steep premium despite weak fundamentals
Conclusion
WOCKPHARMA is financially unstable with weak return ratios, high debt, and no dividend yield, making it unattractive for long-term investors. Entry is ideal near ₹1,250–₹1,300. Current holders should consider a short-to-medium horizon (1–2 years) and exit near ₹1,500–₹1,550 to capture gains while managing valuation and leverage risks.