PFIZER - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 3.4

📊 Fundamental & Valuation Analysis

Metric Value Interpretation

Market Cap ₹24,196 Cr Mid-cap pharma

P/E Ratio 158 Extremely overvalued vs industry PE of 34

PEG Ratio — Not available; likely high due to low growth

ROE 19.8% Strong profitability

ROCE 27.2% Excellent capital efficiency

Dividend Yield 0.66% Low but consistent

Debt to Equity 0.00 Debt-free, very strong balance sheet

📈 Price Trends & Technicals

Indicator Value Signal

Current Price ₹5,277 Near support zone

52W High/Low ₹6,453 / ₹3,701 18% below high

DMA 50 / 200 ₹5,353 / ₹4,988 Trading below 50 DMA, above 200 DMA — neutral

RSI 37.8 Near oversold zone

MACD -72.3 Bearish momentum

Volume Below average Weak participation

🎯 Ideal Entry Price Zone

Given the high valuation and weak technicals, the ideal entry zone is ₹4,800–₹5,000, near the 200 DMA and historical support. This offers a better margin of safety for long-term investors.

🧭 Holding or Exit Strategy

If you already hold Pfizer Ltd

Holding Period: Minimum 3–5 years to benefit from pharma innovation and brand strength.

Exit Strategy

Partial exit near ₹6,300–₹6,450 (resistance zone)

Hold if ROE >18% and PEG <2 (once available)

Exit fully if P/E remains >100 without earnings growth

✅ Long-Term Investment Verdict

Pros

Strong ROE/ROCE and debt-free

Stable dividend history

Resilient brand in healthcare

Cons

Extremely high P/E ratio

PEG ratio unavailable, likely unfavorable

Weak price momentum and low volume

Conclusion: Pfizer Ltd is a quality but overvalued long-term candidate. Ideal for conservative investors if accumulated at lower levels. Wait for valuation correction before fresh entry.

Would you like a comparison with peers like Abbott India or GlaxoSmithKline Pharma?

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