BSE:530239

Stock Analysis Report

Executive Summary

Suven Life Sciences Limited, a biopharmaceutical company, manufactures and sells bulk drugs and intermediaries in India, the United States, Europe, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Suven Life Sciences's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

8.8%

530239

3.9%

IN Pharmaceuticals

3.9%

IN Market


1 Year Return

15.4%

530239

-17.5%

IN Pharmaceuticals

6.0%

IN Market

Return vs Industry: 530239 exceeded the Indian Pharmaceuticals industry which returned -17.5% over the past year.

Return vs Market: 530239 exceeded the Indian Market which returned 6% over the past year.


Shareholder returns

530239IndustryMarket
7 Day8.8%3.9%3.9%
30 Day-1.0%-2.4%7.8%
90 Day15.6%-1.7%2.5%
1 Year16.2%15.4%-16.8%-17.5%8.2%6.0%
3 Year43.7%40.9%-25.5%-27.0%23.0%16.7%
5 Year50.0%45.3%-10.6%-13.3%43.5%30.0%

Price Volatility Vs. Market

How volatile is Suven Life Sciences's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Suven Life Sciences undervalued compared to its fair value and its price relative to the market?

40.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 530239 (₹280.5) is trading above our estimate of fair value (₹160.38)

Significantly Undervalued: 530239 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 530239 is poor value based on its PE Ratio (40.9x) compared to the Pharmaceuticals industry average (15.7x).

PE vs Market: 530239 is poor value based on its PE Ratio (40.9x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 530239 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 530239 is overvalued based on its PB Ratio (4.3x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Suven Life Sciences forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 530239's forecast earnings growth (28.2% per year) is above the savings rate (7.6%).

Earnings vs Market: 530239's earnings (28.2% per year) are forecast to grow faster than the Indian market (18.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 530239's revenue (10.3% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: 530239's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 530239's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Suven Life Sciences performed over the past 5 years?

-6.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 530239's earnings have declined by -6.2% per year over the past 5 years.

Accelerating Growth: 530239's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 530239 had negative earnings growth (-23.9%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.4%).


Return on Equity

High ROE: 530239's Return on Equity (10.5%) is considered low.


Return on Assets

ROA vs Industry: 530239 has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: 530239 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Suven Life Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: 530239's short term assets (₹6.2B) exceeds its short term liabilities (₹1.5B)

Long Term Liabilities: 530239's short term assets (6.2B) exceeds its long term liabilities (588.8M)


Debt to Equity History and Analysis

Debt Level: 530239's debt to equity ratio (4.6%) is considered satisfactory

Reducing Debt: 530239's debt to equity ratio has reduced from 34.1% to 4.6% over the past 5 years.

Debt Coverage: 530239's debt is well covered by operating cash flow (93.5%).

Interest Coverage: 530239's interest payments on its debt are well covered by EBIT (68.6x coverage).


Balance Sheet

Inventory Level: 530239 has a high level of physical assets or inventory.

Debt Coverage by Assets: 530239's debt is covered by short term assets (assets are 16.391110x debt).


Next Steps

Dividend

What is Suven Life Sciences's current dividend yield, its reliability and sustainability?

0.53%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.4%industryaverage0.9%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 530239's dividend (0.53%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 530239's dividend (0.53%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: 530239's dividends per share have been stable in the past 10 years.

Growing Dividend: 530239's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.9%), 530239's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Suven Life Sciences's salary, the management and board of directors tenure and is there insider trading?

12.0yrs

Average management tenure


CEO

Venkat Jasti (70yo)

15yrs

Tenure

₹58,314,000

Compensation

Mr. Venkateswarlu Jasti, also known as Venkat, M.Pharm. M.S. has been the Chief Executive Officer of Suven Life Sciences Ltd., since October 28, 2004. Mr. Jasti founded Asian Clinical Trials Private Limit ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Venkat's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Venkat's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

12.0yrs

Average Tenure

63yo

Average Age

Experienced Management: 530239's management team is seasoned and experienced (12 years average tenure).


Board Age and Tenure

8.2yrs

Average Tenure

67.5yo

Average Age

Experienced Board: 530239's board of directors are considered experienced (8.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Venkat Jasti (70yo)

    Executive Chairman & CEO

    • Tenure: 15yrs
    • Compensation: ₹58.31m
  • Sudharani Jasti (65yo)

    Whole-Time Director

    • Tenure: 30.6yrs
    • Compensation: ₹29.16m
  • N. V. Ramakrishna (57yo)

    Vice President of Discovery Research

    • Tenure: 17.6yrs
  • V. Murthy (71yo)

    Vice-President and Technical Consultant

    • Tenure: 0yrs
  • C. Rajendiran (58yo)

    Vice President of Process Research & Development

    • Tenure: 0yrs
    • Compensation: ₹7.05m
  • Mohan Manam (72yo)

    Vice-President of Business Development & Regulatory Affairs and Technical Consultant

    • Tenure: 0yrs
  • A. Reddy (64yo)

    Vice-President of Research & Development and Technical Consultant

    • Tenure: 0yrs
    • Compensation: ₹3.40m
  • Kalyani Jasti (40yo)

    President of US Operations

    • Tenure: 9.1yrs
  • P. Rao (62yo)

    Chief Financial Officer

    • Tenure: 4.7yrs
  • K. Rao (56yo)

    Company Secretary & Compliance Officer

    • Tenure: 0yrs

Board Members

  • Venkat Jasti (70yo)

    Executive Chairman & CEO

    • Tenure: 15yrs
    • Compensation: ₹58.31m
  • Maripuri Naidu (86yo)

    Independent Non Executive Director

    • Tenure: 21.1yrs
    • Compensation: ₹230.00k
  • Sudharani Jasti (65yo)

    Whole-Time Director

    • Tenure: 30.6yrs
    • Compensation: ₹29.16m
  • Muddusetty Gopalakrishna (80yo)

    Independent Non Executive Director

    • Tenure: 6.9yrs
    • Compensation: ₹280.00k
  • Dasu Prasad (71yo)

    Independent Non Executive Director

    • Tenure: 12.8yrs
    • Compensation: ₹320.00k
  • Seyed Hasnain (65yo)

    Non-Independent & Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: ₹240.00k
  • Santanu Mukherjee (63yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: ₹270.00k
  • J.A.S. Padmaja (57yo)

    Additional & Non-Executive Independent Director

    • Tenure: 0.9yrs
    • Compensation: ₹160.00k

Company Information

Suven Life Sciences Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Suven Life Sciences Limited
  • Ticker: 530239
  • Exchange: BSE
  • Founded: 1989
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹35.703b
  • Shares outstanding: 127.28m
  • Website: https://www.suven.com

Number of Employees


Location

  • Suven Life Sciences Limited
  • # 8-2-334, SDE Serene Chambers
  • 6th Floor
  • Hyderabad
  • 500034
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530239BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2001
SUVENNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2001

Biography

Suven Life Sciences Limited, a biopharmaceutical company, manufactures and sells bulk drugs and intermediaries in India, the United States, Europe, and internationally. It operates through Manufacturing, S ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:44
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.