Strides Pharma Science Limited

NSEI:STAR Stock Report

Market Cap: ₹128.0b

Strides Pharma Science Valuation

Is STAR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of STAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STAR (₹1503.65) is trading below our estimate of fair value (₹1651.02)

Significantly Below Fair Value: STAR is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STAR?

Key metric: As STAR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for STAR. This is calculated by dividing STAR's market cap by their current earnings.
What is STAR's PE Ratio?
PE Ratio78.1x
Earnings₹1.77b
Market Cap₹128.02b

Price to Earnings Ratio vs Peers

How does STAR's PE Ratio compare to its peers?

The above table shows the PE ratio for STAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.2x
532482 Granules India
27.1x22.1%₹133.7b
GLS Glenmark Life Sciences
31.2x23.4%₹132.7b
524742 Caplin Point Laboratories
29.9x13.6%₹148.3b
MARKSANS Marksans Pharma
40.4x22.3%₹138.4b
STAR Strides Pharma Science
78.1x45.6%₹128.0b

Price-To-Earnings vs Peers: STAR is expensive based on its Price-To-Earnings Ratio (78.1x) compared to the peer average (32.2x).

Price to Earnings Ratio vs Industry

How does STAR's PE Ratio compare vs other companies in the IN Pharmaceuticals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
INDSWFTLAB Ind-Swift Laboratories
1.6xn/aUS$72.78m
524652 Ind-Swift
2xn/aUS$13.52m
No more companies available in this PE range
STAR 78.1xIndustry Avg. 32.2xNo. of Companies19PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: STAR is expensive based on its Price-To-Earnings Ratio (78.1x) compared to the Indian Pharmaceuticals industry average (32.2x).

Price to Earnings Ratio vs Fair Ratio

What is STAR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STAR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio78.1x
Fair PE Ratio58.4x

Price-To-Earnings vs Fair Ratio: STAR is expensive based on its Price-To-Earnings Ratio (78.1x) compared to the estimated Fair Price-To-Earnings Ratio (58.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst STAR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,503.65
₹1,700.75
+13.1%
18.1%₹1,954.00₹1,175.00n/a4
Nov ’25₹1,563.00
₹1,700.75
+8.8%
18.1%₹1,954.00₹1,175.00n/a4
Oct ’25₹1,401.00
₹1,343.25
-4.1%
14.1%₹1,650.00₹1,175.00n/a4
Sep ’25₹1,340.05
₹1,208.25
-9.8%
7.2%₹1,348.00₹1,110.00n/a4
Aug ’25₹1,089.45
₹1,219.33
+11.9%
8.0%₹1,348.00₹1,110.00n/a3
Jul ’25₹943.80
₹993.50
+5.3%
16.8%₹1,193.00₹731.00n/a4
Jun ’25₹860.80
₹993.50
+15.4%
16.8%₹1,193.00₹731.00n/a4
May ’25₹896.05
₹830.50
-7.3%
13.4%₹965.00₹710.00n/a4
Apr ’25₹803.25
₹830.50
+3.4%
13.4%₹965.00₹710.00n/a4
Mar ’25₹799.85
₹801.50
+0.2%
12.5%₹965.00₹710.00n/a4
Feb ’25₹692.90
₹801.50
+15.7%
12.5%₹965.00₹710.00n/a4
Jan ’25₹654.25
₹646.25
-1.2%
16.4%₹759.00₹495.00n/a4
Dec ’24₹502.35
₹618.00
+23.0%
17.6%₹759.00₹495.00n/a3
Nov ’24₹481.10
₹618.00
+28.5%
17.6%₹759.00₹495.00₹1,563.003
Oct ’24₹508.10
₹619.67
+22.0%
17.9%₹764.00₹495.00₹1,401.003
Sep ’24₹438.15
₹529.50
+20.8%
13.1%₹599.00₹460.00₹1,340.052
Aug ’24₹480.10
₹480.50
+0.08%
18.8%₹571.00₹390.00₹1,089.452
Jul ’24₹430.65
₹480.50
+11.6%
18.8%₹571.00₹390.00₹943.802
Jun ’24₹359.50
₹480.50
+33.7%
18.8%₹571.00₹390.00₹860.802
May ’24₹340.50
₹498.00
+46.3%
7.2%₹534.00₹462.00₹896.052
Apr ’24₹286.35
₹498.00
+73.9%
7.2%₹534.00₹462.00₹803.252
Mar ’24₹296.55
₹482.00
+62.5%
7.7%₹534.00₹450.00₹799.853
Feb ’24₹284.55
₹464.00
+63.1%
9.6%₹534.00₹410.00₹692.904
Jan ’24₹349.85
₹469.50
+34.2%
9.0%₹518.00₹410.00₹654.254
Dec ’23₹343.50
₹469.50
+36.7%
9.0%₹518.00₹410.00₹502.354
Nov ’23₹316.40
₹449.00
+41.9%
11.7%₹534.00₹402.00₹481.104

Analyst Forecast: Target price is less than 20% higher than the current share price.

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