Stock Price Movement and Market Context
On 2 Feb 2026, Poly Medicure Ltd’s share price declined by 2.74% on the day, hitting an intraday low of Rs.1445.4, which represents its lowest level in the past year. This decline comes after two consecutive days of losses, with the stock falling by 3.79% over this period. Despite this, the stock marginally outperformed its sector, which saw a sharper fall of 3.45% in the Medical Equipment, Supplies, and Accessories segment.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. In contrast, the broader Sensex index recovered from an early negative opening to close slightly higher by 0.09%, supported by gains in mega-cap stocks. However, the NIFTY FMCG index also hit a new 52-week low today, indicating selective weakness across sectors.
Performance Over the Past Year
Poly Medicure Ltd’s one-year performance has been notably weaker than the broader market. The stock has declined by 39.22% over the last 12 months, while the Sensex has delivered a positive return of 4.25% during the same period. This underperformance is significant given the company’s position as the second largest entity in its sector, with a market capitalisation of Rs.15,248 crores, representing 14.83% of the Healthcare Services sector.
The stock’s 52-week high was Rs.2936.7, indicating a substantial retracement from its peak. Despite the negative price trend, the company’s profits have increased by 22.8% over the past year, highlighting a divergence between earnings growth and market valuation.
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Financial Metrics and Valuation
Poly Medicure’s financial indicators reveal a mixed picture. The company reported flat results in the September 2025 quarter, which contributed to the recent downgrade in its Mojo Grade from Hold to Sell on 28 May 2025. The current Mojo Score stands at 37.0, reflecting cautious sentiment.
The company’s dividend payout ratio is relatively low at 10.70%, which may influence income-focused investors. Additionally, the debtors turnover ratio for the half-year period is at 4.02 times, one of the lowest in its peer group, suggesting slower collection cycles.
Return on equity (ROE) is reported at 12.4%, which, while positive, is accompanied by a high price-to-book (P/B) ratio of 5.2. This indicates that the stock is trading at a premium relative to its book value, despite the recent price decline. However, compared to its peers’ historical valuations, Poly Medicure is currently trading at a discount.
The company’s PEG ratio stands at 1.9, reflecting the relationship between its price-to-earnings ratio and earnings growth rate. This figure suggests that the stock’s valuation is somewhat stretched relative to its growth prospects.
Sector Position and Institutional Holdings
Poly Medicure holds a significant position within the Healthcare Services sector, with annual sales of Rs.1,712.13 crores, accounting for 15.86% of the industry’s total. The company maintains a low average debt-to-equity ratio of zero, indicating a conservative capital structure with minimal reliance on debt financing.
Institutional investors hold a substantial 23.24% stake in the company. These investors typically possess greater analytical resources and a longer-term perspective, which can influence stock price stability and market perception.
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Comparative Sector and Market Analysis
The Healthcare Services sector has experienced volatility, with the Medical Equipment/Supplies/Accessories segment declining by 3.45% on the day Poly Medicure hit its 52-week low. Despite this, the broader market has shown resilience, with the Sensex recovering from an initial dip to close marginally higher. The Sensex is trading below its 50-day moving average but maintains a positive trend as the 50-day average remains above the 200-day average.
Poly Medicure’s underperformance relative to the BSE500 index, which has generated a 4.06% return over the past year, highlights the stock’s challenges in keeping pace with broader market gains. The stock’s decline contrasts with the sector’s overall sales growth and the company’s profit increase, underscoring valuation and market sentiment factors influencing its price.
Summary of Key Concerns
The stock’s fall to Rs.1445.4, its lowest in 52 weeks, reflects a combination of valuation pressures, subdued recent quarterly results, and slower receivables turnover. The downgrade in the Mojo Grade to Sell and a modest dividend payout ratio further contribute to cautious market sentiment. Trading below all major moving averages indicates persistent downward momentum, while the stock’s premium P/B ratio suggests that investors remain wary despite the price correction.
Nevertheless, the company’s strong market position, low leverage, and institutional backing provide a foundation that supports its current valuation context within the Healthcare Services sector.
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