Poonawalla Fincorp Limited Fundamental Analysis (NSE: POONAWALLA.NS)
Poonawalla Fincorp Limited Fundamental Analysis (NSE: POONAWALLA.NS)
Poonawalla Fincorp Limited (NSE: POONAWALLA.NS) shows moderate financial fundamentals with a PE ratio of 48.34, profit margin of 10.24%, and ROE of 8.19%. The company generates $77.6B in annual revenue with strong year-over-year growth of 35.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -122.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze POONAWALLA.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakPOONAWALLA.NS struggles to generate sufficient returns from assets.
Valuation Score
ModeratePOONAWALLA.NS shows balanced valuation metrics.
Growth Score
ModeratePOONAWALLA.NS shows steady but slowing expansion.
Financial Health Score
WeakPOONAWALLA.NS carries high financial risk with limited liquidity.
Profitability Score
WeakPOONAWALLA.NS struggles to sustain strong margins.
Key Financial Metrics
Is POONAWALLA.NS Expensive or Cheap?
P/E Ratio
POONAWALLA.NS trades at 48.34 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, POONAWALLA.NS's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Poonawalla Fincorp Limited at 3.85 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -4.65 times EBITDA. This is generally considered low.
How Well Does POONAWALLA.NS Make Money?
Net Profit Margin
For every $100 in sales, Poonawalla Fincorp Limited keeps $10.24 as profit after all expenses.
Operating Margin
Core operations generate 29.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.19 in profit for every $100 of shareholder equity.
ROA
Poonawalla Fincorp Limited generates $1.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Poonawalla Fincorp Limited generates limited operating cash flow of $-91.22B, signaling weaker underlying cash strength.
Free Cash Flow
Poonawalla Fincorp Limited generates weak or negative free cash flow of $-92.18B, restricting financial flexibility.
FCF Per Share
Each share generates $-105.26 in free cash annually.
FCF Yield
POONAWALLA.NS converts -22.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.68
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How POONAWALLA.NS Stacks Against Its Sector Peers
| Metric | POONAWALLA.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.34 | 21.06 | Worse (Expensive) |
| ROE | 8.19% | 651.00% | Weak |
| Net Margin | 10.24% | -599.00% (disorted) | Strong |
| Debt/Equity | 4.68 | 0.88 | Weak (High Leverage) |
| Current Ratio | 0.00 | 887.27 | Weak Liquidity |
| ROA | 1.31% | 6570.00% | Weak |
POONAWALLA.NS outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Poonawalla Fincorp Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-42.30%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-226.47%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-468.37%
Industry Style: Value, Dividend, Cyclical
Declining