Strides Pharma Science Ltd (STAR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

P & G Health Ltd

Strides Pharma

Blue Jet Health

Marksans Pharma

Sanofi India

Aarti Pharma

Shilpa Medicare

FDC

Akums Drugs

Rubicon Research

Sudeep Pharma

Why is Strides Pharma Science Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 7.27%

Poor long term growth as Net Sales has grown by an annual rate of 9.87% and Operating profit at 12.79% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.58 times

The company has declared Positive results for the last 9 consecutive quarters

OPERATING PROFIT TO INTEREST(Q) Highest at 5.02 times
PBT LESS OI(Q) At Rs 134.75 cr has Grown at 118.50%
PBDIT(Q) Highest at Rs 231.56 cr.

With ROCE of 15.6, it has a Attractive valuation with a 2.2 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 23.45%, its profits have fallen by -14.7%

44.13% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Consistent Returns over the last 3 years

Along with generating 23.45% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Strides Pharma should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Strides Pharma for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Strides Pharma

23.54%

0.49

48.20%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.87%

EBIT Growth (5y)

12.79%

EBIT to Interest (avg)

1.31

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.59

Sales to Capital Employed (avg)

0.78

Tax Ratio

16.68%

Dividend Payout Ratio

1.03%

Pledged Shares

44.13%

Institutional Holding

41.50%

ROCE (avg)

6.82%

ROE (avg)

7.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.97

EV to EBIT

14.38

EV to EBITDA

11.18

EV to Capital Employed

2.24

EV to Sales

2.09

PEG Ratio

Dividend Yield

0.45%

ROCE (Latest)

15.60%

ROE (Latest)

15.82%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 5.02 times

PBT LESS OI(Q)

At Rs 134.75 cr has Grown at 118.50%

PBDIT(Q)

Highest at Rs 231.56 cr.

PAT(Q)

Highest at Rs 135.06 cr.

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,428.50 cr

NET SALES(Q)

Highest at Rs 1,220.83 cr

EPS(Q)

Highest at Rs 13.84

-7What is not working for the Company

PAT(Latest six months)

At Rs 241.92 cr has Grown at -50.26%

Loading Valuation Snapshot...

Here's what is working for Strides Pharma

Operating Profit to Interest - Quarterly

Highest at 5.02 times and Grown

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 134.75 cr has Grown at 118.50%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 231.56 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 134.75 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 135.06 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 135.06 cr has Grown at 79.9%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 1,220.83 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 13.84

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,428.50 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents