WOCKPHARMA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.2

📊 Core Financials Breakdown

Profitability

ROCE: 4.40% and ROE: -0.53% — weak, indicating poor capital efficiency and negative shareholder returns.

EPS: ₹3.01, with PAT rising from ₹40 Cr. to ₹69 Cr. — a sharp 1,050% quarterly jump, but from a low base.

Debt-to-equity: 0.65 — moderately high, which could pressure margins if rates rise.

Dividend Yield: 0.00% — no payouts, typical for companies reinvesting or restructuring.

Institutional Sentiment

FII holdings increased (+0.47%), DII holdings also rose (+0.42%) — cautious optimism from institutions.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 486 Extremely high vs. industry average (33.4) — signals severe overvaluation.

P/B Ratio ~8.98 Elevated, not supported by return metrics.

PEG Ratio 20.1 Very high — valuation not justified by earnings growth.

Intrinsic Value ~₹1,350–₹1,400 (est.) Current price of ₹1,526 is above fair value.

🧠 Business Model & Competitive Edge

Core Operations: Wockhardt Ltd. is a pharmaceutical and biotechnology company with a focus on antibiotics, injectables, and biosimilars.

Strengths

Global footprint with manufacturing in India, UK, Ireland, and the US.

Strong pipeline in anti-infectives and respiratory therapies.

Recent profit surge may reflect operational turnaround or one-off gains.

Challenges

Weak ROE and ROCE, high valuation multiples, and no dividend.

RSI at 51.4 — neutral, MACD at -2.04 — bearish crossover.

Volume below weekly average — signals reduced short-term interest.

📈 Entry Zone & Technicals

DMA 50: ₹1,537, DMA 200: ₹1,419 — price is hovering near both, indicating consolidation.

RSI: 51.4 — neutral zone.

MACD: -2.04 — bearish momentum.

📌 Entry Zone: ₹1,350–₹1,400 — suitable for accumulation if valuation cools and fundamentals stabilize.

🕰️ Long-Term Holding Guidance

2025 Target: ₹1,600–₹1,750

2026–2028 Target: ₹1,900–₹2,300

2030 Target: ₹2,800+

Holding Strategy: Wockhardt is a speculative pharma play with global exposure and potential for turnaround. Suitable for high-risk investors with a long-term horizon. Accumulate cautiously during technical dips and monitor earnings consistency and regulatory developments.

You can explore Choice India’s Wockhardt fundamental analysis and Trendlyne’s stock report for deeper insights.

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