Strides Pharma Science Limited Fundamental Analysis (NSE: STAR.NS)
Strides Pharma Science Limited Fundamental Analysis (NSE: STAR.NS)
Strides Pharma Science Limited (NSE: STAR.NS) shows strong financial fundamentals with a PE ratio of 14.82, profit margin of 12.26%, and ROE of 21.81%. The company generates $50.0B in annual revenue with strong year-over-year growth of 16.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze STAR.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakSTAR.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSTAR.NS trades at attractive valuation levels.
Growth Score
ModerateSTAR.NS shows steady but slowing expansion.
Financial Health Score
ExcellentSTAR.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateSTAR.NS maintains healthy but balanced margins.
Key Financial Metrics
Is STAR.NS Expensive or Cheap?
P/E Ratio
STAR.NS trades at 14.82 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, STAR.NS's PEG of 0.19 indicates potential undervaluation.
Price to Book
The market values Strides Pharma Science Limited at 2.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.11 times EBITDA. This is generally considered low.
How Well Does STAR.NS Make Money?
Net Profit Margin
For every $100 in sales, Strides Pharma Science Limited keeps $12.26 as profit after all expenses.
Operating Margin
Core operations generate 14.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.81 in profit for every $100 of shareholder equity.
ROA
Strides Pharma Science Limited generates $8.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Strides Pharma Science Limited generates limited operating cash flow of $3.91B, signaling weaker underlying cash strength.
Free Cash Flow
Strides Pharma Science Limited produces free cash flow of $2.42B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $26.29 in free cash annually.
FCF Yield
STAR.NS converts 2.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.57
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How STAR.NS Stacks Against Its Sector Peers
| Metric | STAR.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.82 | 30.97 | Better (Cheaper) |
| ROE | 21.81% | 515.00% | Weak |
| Net Margin | 12.26% | 30197.00% | Weak |
| Debt/Equity | 0.57 | 0.53 | Neutral |
| Current Ratio | 1.25 | 5.71 | Neutral |
| ROA | 8.86% | -16.00% (disorted) | Weak |
STAR.NS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Strides Pharma Science Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.37%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
1533.82%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
225.26%
Industry Style: Defensive, Growth, Innovation
High Growth