NSEI:STAR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Strides Pharma Science Limited develops, manufactures, and sells pharmaceutical products in Africa, Australasia, North America, Europe, Asia, India, and internationally. More Details


Snowflake Analysis

Proven track record with reasonable growth potential.

Share Price & News

How has Strides Pharma Science's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STAR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.0%

STAR

-3.2%

IN Pharmaceuticals

-0.6%

IN Market


1 Year Return

114.6%

STAR

52.6%

IN Pharmaceuticals

2.2%

IN Market

Return vs Industry: STAR exceeded the Indian Pharmaceuticals industry which returned 52.6% over the past year.

Return vs Market: STAR exceeded the Indian Market which returned 2.2% over the past year.


Shareholder returns

STARIndustryMarket
7 Day2.0%-3.2%-0.6%
30 Day5.6%-4.3%0.2%
90 Day83.7%13.4%6.7%
1 Year115.7%114.6%54.5%52.6%3.9%2.2%
3 Year-6.7%-11.2%26.9%23.4%2.6%-2.4%
5 Year-38.1%-41.5%-0.6%-4.1%41.3%30.8%

Price Volatility Vs. Market

How volatile is Strides Pharma Science's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Strides Pharma Science undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STAR (₹752.8) is trading below our estimate of fair value (₹3267.22)

Significantly Below Fair Value: STAR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: STAR is poor value based on its PE Ratio (53.2x) compared to the IN Pharmaceuticals industry average (23x).

PE vs Market: STAR is poor value based on its PE Ratio (53.2x) compared to the Indian market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: STAR is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: STAR is overvalued based on its PB Ratio (2.7x) compared to the IN Pharmaceuticals industry average (2.2x).


Next Steps

Future Growth

How is Strides Pharma Science forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

31.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STAR's forecast earnings growth (31.3% per year) is above the savings rate (7.2%).

Earnings vs Market: STAR's earnings (31.3% per year) are forecast to grow faster than the Indian market (25.5% per year).

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

Revenue vs Market: STAR's revenue (13.1% per year) is forecast to grow faster than the Indian market (11.6% per year).

High Growth Revenue: STAR's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STAR's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Strides Pharma Science performed over the past 5 years?

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STAR has high quality earnings.

Growing Profit Margin: STAR's current net profit margins (4.4%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: STAR's earnings have declined by 4.6% per year over the past 5 years.

Accelerating Growth: STAR's earnings growth over the past year (66.5%) exceeds its 5-year average (-4.6% per year).

Earnings vs Industry: STAR earnings growth over the past year (66.5%) exceeded the Pharmaceuticals industry 14.7%.


Return on Equity

High ROE: STAR's Return on Equity (4.6%) is considered low.


Next Steps

Financial Health

How is Strides Pharma Science's financial position?


Financial Position Analysis

Short Term Liabilities: STAR's short term assets (₹23.7B) do not cover its short term liabilities (₹25.4B).

Long Term Liabilities: STAR's short term assets (₹23.7B) exceed its long term liabilities (₹10.1B).


Debt to Equity History and Analysis

Debt Level: STAR's debt to equity ratio (75.6%) is considered high.

Reducing Debt: STAR's debt to equity ratio has reduced from 79% to 75.6% over the past 5 years.

Debt Coverage: STAR's debt is not well covered by operating cash flow (10.4%).

Interest Coverage: STAR's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Strides Pharma Science current dividend yield, its reliability and sustainability?

0.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STAR's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: STAR's dividend (0.27%) is low compared to the top 25% of dividend payers in the Indian market (2.29%).


Stability and Growth of Payments

Stable Dividend: STAR is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: STAR is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: STAR is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of STAR's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Ananth Ananthanarayanan (55 yo)

0.75

Tenure

₹110,488,953

Compensation

Dr. R. Ananthanarayanan, also known as Ananth, B.Pharm, PhD is the Chief Executive Officer and Managing Director at Strides Pharma Science Limited since January 9, 2020. He served as Global Chief Operating ...


CEO Compensation Analysis

Compensation vs Market: Ananth's total compensation ($USD1.51M) is above average for companies of similar size in the Indian market ($USD389.57K).

Compensation vs Earnings: Insufficient data to compare Ananth's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Arun Pillai
Founder & Non-Executive Chairman0.50yr₹72.08m1.55%
₹ 1.0b
R. Ananthanarayanan
CEO, MD & Director0.75yr₹110.49mno data
Badree Komandur
Group CFO3.42yrs₹37.20m0.014%
₹ 9.3m
Manjula Ramamurthy
Compliance Officer & Company Secretary3.42yrs₹3.99m0.0012%
₹ 824.3k
A. Narayanan
Chief Information Technology Officerno datano datano data
Anjani Kumar
Chief Information Officerno datano data0.0056%
₹ 3.7m
Sormistha Ghosh
General Counsel & Chief Risk Officerno datano datano data
Sanjay Singh
Chief Human Resource Officer1.75yrsno datano data
C. Sundar
Executive Vice President of Operationsno datano datano data
Kevin Cook
Senior Vice President of Strides Pharma Inc.no datano datano data
P. V. Ramaraju
Chief Quality Officer1.75yrsno data0.021%
₹ 14.2m
Umesh Kale
Chief of Quality Servicesno datano data0.020%
₹ 13.5m

1.8yrs

Average Tenure

Experienced Management: STAR's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Arun Pillai
Founder & Non-Executive Chairman0.50yr₹72.08m1.55%
₹ 1.0b
R. Ananthanarayanan
CEO, MD & Director0.75yr₹110.49mno data
Badree Komandur
Group CFO3.42yrs₹37.20m0.014%
₹ 9.3m
Deepak Vaidya
Non-Executive Director22.75yrs₹2.20m0.025%
₹ 16.5m
Homi Khusrokhan
Independent Director3.42yrs₹2.00mno data
Srinivasan Sridhar
Independent Director8.25yrs₹2.20mno data
Dennis Bastas
Executive Chairman of Arrow Pharmaceuticalsno datano datano data
Gopakumar Nair
Member of Scientific Advisory Boardno datano datano data
Elias Neto
Member of Scientific Advisory Boardno datano datano data
S. Vyas
Member of Scientific Advisory Boardno datano datano data
B. Suresh
Member of Scientific Advisory Boardno datano datano data
Bharat Shah
Independent Director6.25yrs₹2.20m0.11%
₹ 72.1m

3.4yrs

Average Tenure

73yo

Average Age

Experienced Board: STAR's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: STAR insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Strides Pharma Science Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Strides Pharma Science Limited
  • Ticker: STAR
  • Exchange: NSEI
  • Founded: 1990
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹67.013b
  • Shares outstanding: 89.63m
  • Website: https://www.strides.com

Number of Employees


Location

  • Strides Pharma Science Limited
  • Strides House
  • Bilekahalli
  • Bengaluru
  • Karnataka
  • 560076
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532531BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2000
STARNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2000

Biography

Strides Pharma Science Limited develops, manufactures, and sells pharmaceutical products in Africa, Australasia, North America, Europe, Asia, India, and internationally. The company offers pharma generics, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 12:45
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.