POLYMED - Investment Analysis

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

Investment Rating: 4.0

📊 Fundamental & Valuation Analysis

Metric Value Interpretation

Market Cap ₹20,023 Cr Mid-cap healthcare stock

P/E Ratio 59.1 Overvalued vs industry PE of 35.8

PEG Ratio 1.74 Fairly valued for growth

ROE 16.0% Solid return on equity

ROCE 20.2% Strong capital efficiency

Dividend Yield 0.15% Very low income generation

Debt to Equity 0.07 Very low leverage — financially sound

📈 Price Trends & Technicals

Indicator Value Signal

Current Price ₹1,977 Near support zone

52W High/Low ₹3,358 / ₹1,788 41% below high — deep correction

DMA 50 / 200 ₹2,192 / ₹2,267 Trading below both — bearish

RSI 28.6 Oversold — potential rebound

MACD -58.4 Bearish momentum

Volume Slightly above average

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Renewed interest

🎯 Ideal Entry Price Zone

Given the oversold RSI and strong fundamentals, ideal entry zone is ₹1,800–₹1,950, near the 52-week low and key support levels. This offers a solid margin of safety for long-term accumulation.

🧭 Holding or Exit Strategy

If you already hold Poly Medicure Ltd (POLYMED)

Holding Period: Minimum 3–5 years to benefit from global medical device demand and export tailwinds.

Exit Strategy

Partial exit near ₹2,800–₹3,000 (resistance zone)

Hold if ROE >15% and PEG <2

Exit fully if PEG rises above 2.5 or margins deteriorate

✅ Long-Term Investment Verdict

Pros

Strong ROE/ROCE and low debt

PEG ratio supports growth valuation

High export potential and global presence

Positioned to benefit from geopolitical shifts in medical supply chains

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Cons

High P/E ratio

Very low dividend yield

Weak technical momentum and recent price correction

Conclusion: Poly Medicure Ltd is a strong long-term candidate in the healthcare space. Accumulate on dips near ₹1,800–₹1,950 for compounding returns over 3–5 years.

Would you like a peer comparison with Dr. Lal PathLabs, Syngene, or Krishna Institute of Medical Sciences?

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