APLLTD - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.3
| Stock Code | APLLTD | Market Cap | 15,701 Cr. | Current Price | 798 ₹ | High / Low | 1,108 ₹ |
| Stock P/E | 35.4 | Book Value | 267 ₹ | Dividend Yield | 1.38 % | ROCE | 11.3 % |
| ROE | 9.68 % | Face Value | 2.00 ₹ | DMA 50 | 826 ₹ | DMA 200 | 901 ₹ |
| Chg in FII Hold | 0.19 % | Chg in DII Hold | -0.13 % | PAT Qtr | 179 Cr. | PAT Prev Qtr | 104 Cr. |
| RSI | 49.5 | MACD | -14.2 | Volume | 39,343 | Avg Vol 1Wk | 37,374 |
| Low price | 725 ₹ | High price | 1,108 ₹ | PEG Ratio | -10.7 | Debt to equity | 0.27 |
| 52w Index | 19.0 % | Qtr Profit Var | 15.6 % | EPS | 22.6 ₹ | Industry PE | 29.1 |
📊 Analysis: APLLTD shows moderate fundamentals. ROE at 9.68% and ROCE at 11.3% are below ideal levels, indicating average capital efficiency. Debt-to-equity at 0.27 is manageable, but not negligible. The P/E of 35.4 is higher than the industry average of 29.1, suggesting overvaluation. EPS of ₹22.6 is modest relative to price, and dividend yield of 1.38% provides limited income support. The PEG ratio is negative (-10.7), which signals distorted valuation relative to growth. On the positive side, quarterly PAT improved (179 Cr vs 104 Cr), showing earnings momentum. Technicals are weak: MACD negative (-14.2), RSI neutral (49.5), and price below DMA 50 and DMA 200, indicating bearish undertone.
💡 Entry Price Zone: Ideal accumulation range is between ₹740 – ₹770, closer to the 52-week low, offering better valuation comfort.
⏳ Exit / Holding Strategy: If already holding, maintain a medium-term horizon (2–3 years) but monitor earnings recovery and margin improvement. Exit or partial profit booking should be considered near ₹1,050–₹1,100 resistance levels if valuations stretch without significant growth in ROE/ROCE.
Positive ✅
- Quarterly PAT growth (179 Cr vs 104 Cr) shows earnings momentum.
- Dividend yield of 1.38% provides modest income support.
- Debt-to-equity ratio of 0.27 is manageable.
- FII holdings increased slightly (+0.19%), reflecting foreign investor interest.
Limitation ⚠️
- ROE (9.68%) and ROCE (11.3%) are below desirable levels.
- P/E of 35.4 is higher than industry average (29.1).
- Negative PEG ratio (-10.7) signals distorted valuation relative to growth.
- Weak technicals: MACD negative, price below DMA 50 & DMA 200.
- DII holdings decreased (-0.13%), showing reduced domestic institutional confidence.
Company Negative News 📉
- No major negative news reported, but weak ROE/ROCE and high valuations remain concerns.
Company Positive News 📈
- Quarterly profit growth of 15.6% indicates operational improvement.
- EPS of ₹22.6 supports profitability.
Industry 🌐
- Industry P/E at 29.1 indicates moderate valuation levels.
- Pharmaceutical sector benefits from long-term demand and healthcare expansion.
Conclusion 📝
APLLTD is a moderately attractive stock with earnings momentum and manageable debt, but faces challenges with weak ROE/ROCE and stretched valuations. Investors should accumulate near ₹740–₹770 for better risk-adjusted returns. Existing holders should maintain a 2–3 year horizon, with partial profit booking near ₹1,050–₹1,100 resistance levels if profitability metrics do not improve significantly.