NSEI:STAR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with acceptable track record.

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


Market Performance


7 Day Return

-2.2%

STAR

4.0%

IN Pharmaceuticals

2.4%

IN Market


1 Year Return

-16.1%

STAR

-13.9%

IN Pharmaceuticals

8.0%

IN Market

Return vs Industry: STAR underperformed the Indian Pharmaceuticals industry which returned -13.9% over the past year.

Return vs Market: STAR underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

STARIndustryMarket
7 Day-2.2%4.0%2.4%
30 Day-4.0%-2.8%2.5%
90 Day-0.2%0.7%3.6%
1 Year-12.6%-16.1%-13.1%-13.9%10.3%8.0%
3 Year-62.3%-64.1%-24.6%-26.2%22.3%16.0%
5 Year-45.7%-48.6%-10.2%-12.9%42.8%29.3%

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?

41.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STAR (₹343.5) is trading above our estimate of fair value (₹286.1)

Significantly Below Fair Value: STAR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STAR is poor value based on its PE Ratio (41.4x) compared to the Pharmaceuticals industry average (15.6x).

PE vs Market: STAR is poor value based on its PE Ratio (41.4x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: STAR is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: STAR is good value based on its PB Ratio (1.2x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Strides Pharma Science forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

36.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STAR's forecast earnings growth (36.4% per year) is above the savings rate (7.6%).

Earnings vs Market: STAR's earnings (36.4% per year) are forecast to grow faster than the Indian market (18.4% per year).

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

Revenue vs Market: STAR's revenue (8.7% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: STAR's revenue (8.7% 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 (9.6%).


Next Steps

Past Performance

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

-14.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STAR has become profitable over the past 5 years, growing earnings by -14.6% per year.

Accelerating Growth: STAR's earnings growth over the past year (79.3%) exceeds its 5-year average (-14.6% per year).

Earnings vs Industry: STAR earnings growth over the past year (79.3%) exceeded the Pharmaceuticals industry 14.2%.


Return on Equity

High ROE: STAR's Return on Equity (2.8%) is considered low.


Return on Assets

ROA vs Industry: STAR's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: STAR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Strides Pharma Science's financial position?


Financial Position Analysis

Short Term Liabilities: STAR's short term assets (₹30.5B) exceeds its short term liabilities (₹27.0B)

Long Term Liabilities: STAR's short term assets (30.5B) exceeds its long term liabilities (25.0B)


Debt to Equity History and Analysis

Debt Level: STAR's debt to equity ratio (116.1%) is considered high

Reducing Debt: STAR's debt to equity ratio has increased from 57.4% to 116.1% over the past 5 years.

Debt Coverage: STAR's debt is not well covered by operating cash flow (1.8%).

Interest Coverage: STAR's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: STAR's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

0.87%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: STAR's dividend (0.87%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: STAR's dividend (0.87%) is low compared to the top 25% of dividend payers in the Indian market (2.41%).

Stable Dividend: STAR's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.1%), STAR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STAR's dividends in 3 years are forecast to be well covered by earnings (15.8% payout ratio).


Next Steps

Management

What is the CEO of Strides Pharma Science's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Arun Kumar 0

1.4yrs

Tenure

₹50,000,000

Compensation

Mr. Arun Kumar, B.Com. founded Strides Pharma Science Limited and has been its Group CEO and Managing Director since May 2018. Mr. Kumar served as Managing Director of Strides Pharma Science Limited from J ...


CEO Compensation Analysis

Compensation vs. Market: Arun has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Indian market.

Compensation vs Earnings: Arun's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.9yrs

Average Tenure

Experienced Management: STAR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

73yo

Average Age

Experienced Board: STAR's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy₹6,247,73904 Oct 19
Mohana Pillai
EntityIndividual
Shares19,150
Max Price₹326.25
Sell₹2,820,48320 Sep 19
V. Leela
EntityIndividual
Shares7,500
Max Price₹376.06
Buy₹8,016,27720 Sep 19
Nitin Kumar
EntityIndividual
Shares21,250
Max Price₹377.24
Buy₹8,024,39020 Sep 19
V. Jatin
EntityIndividual
Shares21,250
Max Price₹377.62
Sell₹3,014,50520 Sep 19
S. Kumar
EntityIndividual
Shares8,000
Max Price₹376.81
Sell₹4,888,83820 Sep 19
Rupali Jatin
EntityIndividual
Shares13,000
Max Price₹376.06
Sell₹5,262,96920 Sep 19
Monisha Nitin
EntityIndividual
Shares14,000
Max Price₹375.93
Buy₹14,447,82423 Aug 19
Shasun Leasing and Finance Private Limited
EntityCompany
Shares36,909
Max Price₹392.11
Buy₹10,160,25623 Aug 19
Bharat Shah
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max Price₹406.41
Buy₹19,307,97414 Aug 19
V. Jatin
EntityIndividual
Shares45,500
Max Price₹424.35
Sell₹113,052,10614 Aug 19
Devendra Estate Private Limited
EntityCompany
Shares273,000
Max Price₹414.11
Buy₹38,328,59014 Aug 19
Chaitanya Devendra
EntityIndividual
Shares91,000
Max Price₹421.19
Buy₹18,107,12014 Aug 19
Nitin Kumar
EntityIndividual
Shares45,500
Max Price₹397.96
Buy₹1,931,26005 Aug 19
Deepak Vaidya
EntityIndividual
Role
Chairman of the Board
Chairperson
Shares5,000
Max Price₹386.25
Sell₹62,899,40429 Mar 19
Monisha Nitin
EntityIndividual
Shares135,000
Max Price₹465.92
Buy₹154,347,46029 Mar 19
Nitin Kumar
EntityIndividual
Shares335,000
Max Price₹460.74
Sell₹62,062,78329 Mar 19
Rupali Jatin
EntityIndividual
Shares135,000
Max Price₹459.72
Sell₹23,295,02829 Mar 19
V. Leela
EntityIndividual
Shares50,000
Max Price₹465.90
Buy₹156,473,99929 Mar 19
V. Jatin
EntityIndividual
Shares335,000
Max Price₹467.09
Sell₹161,518,05829 Mar 19
S. Kumar
EntityIndividual
Shares350,000
Max Price₹461.48
Sell₹424,049,15226 Feb 19
Abusha Investment And Management Services LLP
EntityCompany
Shares1,000,000
Max Price₹424.05
Buy₹425,466,60226 Feb 19
LifeCell International Private Limited
EntityCompany
Shares1,000,000
Max Price₹425.47
Buy₹1,318,74022 Jan 19
Sajjan D.
EntityIndividual
Shares2,600
Max Price₹507.21

Ownership Breakdown


Management Team

  • Shashank Sinha (55yo)

    Chief Executive Officer of International Operations

    • Tenure: 0yrs
    • Compensation: ₹10.06m
  • Badree Komandur (47yo)

    Group CFO

    • Tenure: 2.4yrs
    • Compensation: ₹32.11m
  • Kevin Cook

    Senior Vice President of Strides Pharma Inc.

    • Tenure: 0yrs
  • C. Sundar

    Executive Vice President of Operations

    • Tenure: 0yrs
  • Manjula Ramamurthy

    Compliance Officer & Company Secretary

    • Tenure: 2.4yrs
    • Compensation: ₹3.38m
  • Arun Kumar

    Founder

    • Tenure: 1.4yrs
    • Compensation: ₹50.00m
  • A. Narayanan

    Chief Information Technology Officer

    • Tenure: 0yrs
  • Sormistha Ghosh

    General Counsel & Chief Risk Officer

    • Tenure: 0yrs
  • Anjani Kumar

    Chief Information Officer

    • Tenure: 0yrs
  • Sanjay Singh

    Chief Human Resource Officer

    • Tenure: 0.8yrs

Board Members

  • Deepak Vaidya (74yo)

    Chairperson

    • Tenure: 1.4yrs
    • Compensation: ₹2.40m
  • Homi Khusrokhan (75yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹2.40m
  • Srinivasan Sridhar (68yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: ₹2.60m
  • Dennis Bastas

    Executive Chairman of Arrow Pharmaceuticals

    • Tenure: 0yrs
  • Gopakumar Nair (78yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Elias Neto

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • S. Vyas

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Badree Komandur (47yo)

    Group CFO

    • Tenure: 2.4yrs
    • Compensation: ₹32.11m
  • Arun Kumar

    Founder

    • Tenure: 1.4yrs
    • Compensation: ₹50.00m
  • Bharat Shah (72yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹2.60m

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: ₹31.409b
  • Shares outstanding: 89.55m
  • 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 Analysis2019/10/23 12:44
End of Day Share Price2019/10/23 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.