Novartis India Limited
Novartis India Limited Fundamental Analysis
Novartis India Limited (NOVARTIND.BO) shows moderate financial fundamentals with a PE ratio of 25.74, profit margin of 27.97%, and ROE of 12.65%. The company generates $3.5B in annual revenue with moderate year-over-year growth of 6.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NOVARTIND.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNOVARTIND.BO demonstrates superior asset utilization.
Valuation Score
ModerateNOVARTIND.BO shows balanced valuation metrics.
Growth Score
ExcellentNOVARTIND.BO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNOVARTIND.BO maintains a strong and stable balance sheet.
Profitability Score
WeakNOVARTIND.BO struggles to sustain strong margins.
Key Financial Metrics
Is NOVARTIND.BO Expensive or Cheap?
P/E Ratio
NOVARTIND.BO trades at 25.74 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NOVARTIND.BO's PEG of -2.93 indicates potential undervaluation.
Price to Book
The market values Novartis India Limited at 3.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.66 times EBITDA. This signals the market has high growth expectations.
How Well Does NOVARTIND.BO Make Money?
Net Profit Margin
For every $100 in sales, Novartis India Limited keeps $27.97 as profit after all expenses.
Operating Margin
Core operations generate 29.78 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.65 in profit for every $100 of shareholder equity.
ROA
Novartis India Limited generates $10.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Novartis India Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Novartis India Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
NOVARTIND.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.008
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How NOVARTIND.BO Stacks Against Its Sector Peers
| Metric | NOVARTIND.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.74 | 28.96 | Better (Cheaper) |
| ROE | 12.65% | 716.00% | Weak |
| Net Margin | 27.97% | -46137.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.35 | Strong (Low Leverage) |
| Current Ratio | 5.54 | 4.52 | Strong Liquidity |
| ROA | 10.43% | -17407.00% (disorted) | Strong |
NOVARTIND.BO outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Novartis India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-13.38%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
901.11%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
422.29%
Industry Style: Defensive, Growth, Innovation
High Growth