⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
WOCKPHARMA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | WOCKPHARMA | Market Cap | 22,038 Cr. | Current Price | 1,354 ₹ | High / Low | 1,870 ₹ |
| Stock P/E | 156 | Book Value | 178 ₹ | Dividend Yield | 0.00 % | ROCE | 4.40 % |
| ROE | -0.53 % | Face Value | 5.00 ₹ | DMA 50 | 1,389 ₹ | DMA 200 | 1,396 ₹ |
| Chg in FII Hold | -0.10 % | Chg in DII Hold | -0.45 % | PAT Qtr | 54.0 Cr. | PAT Prev Qtr | 69.0 Cr. |
| RSI | 44.3 | MACD | -10.6 | Volume | 2,96,318 | Avg Vol 1Wk | 3,51,426 |
| Low price | 1,110 ₹ | High price | 1,870 ₹ | PEG Ratio | 6.47 | Debt to equity | 0.76 |
| 52w Index | 32.1 % | Qtr Profit Var | 250 % | EPS | 8.68 ₹ | Industry PE | 29.0 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT declined from 69 Cr. to 54 Cr., showing earnings pressure despite YoY profit variation of +250% due to a low base.
- Margins & Returns: ROCE at 4.40% and ROE at -0.53% highlight weak efficiency and poor profitability.
- Debt Ratios: Debt-to-equity at 0.76 indicates relatively high leverage, raising financial risk.
- Cash Flows: No dividend payout (0.00%) reflects weak cash generation and reinvestment focus.
💹 Valuation Indicators
- P/E Ratio: 156 vs industry average of 29.0 → trades at an extreme premium.
- P/B Ratio: Current Price / Book Value ≈ 7.6 → significantly above intrinsic value.
- PEG Ratio: 6.47 → signals overvaluation relative to growth.
- Intrinsic Value: Current price (1,354 ₹) appears expensive compared to fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in pharmaceuticals with focus on generics and specialty drugs.
- Global presence provides diversification, but profitability remains weak.
- High debt and poor return ratios limit competitive strength.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Speculative accumulation only near 1,100 ₹ – 1,200 ₹, close to 52-week low support.
- Long-Term Holding: High-risk investment; suitable only for speculative investors betting on turnaround. Conservative investors should avoid.
✅ Positive
- EPS of 8.68 ₹ provides some earnings visibility.
- YoY profit variation (+250%) shows recovery from a low base.
- Global presence in pharmaceuticals offers diversification.
⚠️ Limitation
- High P/E ratio (156) compared to industry average.
- Weak ROCE (4.40%) and negative ROE (-0.53%).
- High debt-to-equity ratio (0.76) increases financial risk.
📉 Company Negative News
- Quarterly PAT declined from 69 Cr. to 54 Cr.
- Stock trading below both 50 DMA (1,389 ₹) and 200 DMA (1,396 ₹), indicating weak momentum.
- RSI at 44.3 and negative MACD (-10.6) suggest bearish technical outlook.
- Decline in both FII (-0.10%) and DII (-0.45%) holdings shows reduced institutional confidence.
📈 Company Positive News
- YoY profit variation (+250%) indicates recovery from prior weak quarters.
- EPS of 8.68 ₹ supports valuation strength despite weak fundamentals.
🏭 Industry
- Industry P/E at 29.0 indicates sector trades at much lower multiples.
- Pharmaceutical sector benefits from global demand and healthcare spending.
- WOCKPHARMA trades at a steep premium, reflecting speculative sentiment rather than fundamentals.
🔎 Conclusion
WOCKPHARMA shows weak fundamentals with poor efficiency, high debt, and earnings pressure, yet trades at a steep premium compared to industry peers. Entry is only advisable near 1,100 ₹ – 1,200 ₹ for speculative investors willing to accept high risk. Conservative investors should avoid until profitability stabilizes. Overall, the company remains strategically positioned in pharmaceuticals but faces significant financial and valuation challenges.
I can also compare WOCKPHARMA’s valuation and debt profile against stronger peers like Sun Pharma or Cipla to highlight relative risks and opportunities if you’d like.