PFIZER - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.6
| Stock Code | PFIZER | Market Cap | 21,284 Cr. | Current Price | 4,668 ₹ | High / Low | 5,993 ₹ |
| Stock P/E | 30.1 | Book Value | 841 ₹ | Dividend Yield | 0.75 % | ROCE | 21.6 % |
| ROE | 16.4 % | Face Value | 10.0 ₹ | DMA 50 | 4,849 ₹ | DMA 200 | 5,004 ₹ |
| Chg in FII Hold | 0.11 % | Chg in DII Hold | -0.06 % | PAT Qtr | 189 Cr. | PAT Prev Qtr | 192 Cr. |
| RSI | 44.8 | MACD | -95.4 | Volume | 11,129 | Avg Vol 1Wk | 10,158 |
| Low price | 3,701 ₹ | High price | 5,993 ₹ | PEG Ratio | 19.1 | Debt to equity | 0.01 |
| 52w Index | 42.2 % | Qtr Profit Var | 19.4 % | EPS | 183 ₹ | Industry PE | 29.2 |
📊 Analysis: Pfizer India trades at ₹4,668 with a P/E of 30.1, slightly above the industry average of 29.2, suggesting fair valuation. Fundamentals are solid with ROE at 16.4% and ROCE at 21.6%, reflecting efficient capital use. EPS of ₹183 is strong, and debt-to-equity is very low at 0.01, showing financial stability. Dividend yield of 0.75% provides modest income support. However, PEG ratio of 19.1 indicates expensive valuation relative to growth. Quarterly PAT is stable (₹189 Cr. vs ₹192 Cr.), showing consistency. Technicals are weak (RSI 44.8, MACD negative, trading below DMA 50 & 200), suggesting bearish momentum. Overall, Pfizer India is a fundamentally sound company but currently overvalued, making dips more attractive for entry.
💡 Entry Price Zone: Ideal accumulation range is ₹4,200–₹4,400, closer to the 52-week low (₹3,701) and below DMA levels. Current price is slightly stretched, so dips offer better risk-reward.
📈 Exit / Holding Strategy: For existing holders, Pfizer India is a stable long-term compounder. Recommended holding period: 5+ years to benefit from consistent healthcare demand and dividend payouts. Exit strategy: partial profit booking near ₹5,700–₹5,900 if valuations stretch, while retaining core holdings for compounding.
Positive
- Strong ROE (16.4%) and ROCE (21.6%) show efficient capital utilization.
- EPS of ₹183 supports earnings strength.
- Debt-to-equity ratio of 0.01 indicates financial stability.
- Dividend yield of 0.75% provides modest income.
- FII holdings increased slightly (+0.11%), showing foreign investor confidence.
Limitation
- PEG ratio of 19.1 suggests expensive valuation relative to growth.
- Stock trading below DMA 50 (4,849) and DMA 200 (5,004), showing weak technical trend.
- MACD negative (-95.4), indicating bearish momentum.
- DII holdings reduced (-0.06%), showing lower domestic institutional confidence.
Company Negative News
- Quarterly PAT declined slightly from ₹192 Cr. to ₹189 Cr.
- Technical indicators show weakness with RSI below 50 and MACD negative.
Company Positive News
- Quarterly profit variation (+19.4%) shows growth momentum.
- FII holdings increased (+0.11%), reflecting foreign investor confidence.
Industry
- Industry PE at 29.2, close to Pfizer India’s valuation, suggesting fair pricing.
- Pharmaceutical industry has strong long-term demand potential driven by healthcare needs and innovation.
Conclusion
✅ Pfizer India is a fundamentally strong, debt-free company with consistent profitability and modest dividend yield but currently overvalued. Ideal entry is ₹4,200–₹4,400. Long-term investors can hold for 5+ years to benefit from compounding. Existing holders may book profits near ₹5,700–₹5,900 while retaining core positions for sustained growth.