NSEI:SUVEN

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 Analysis

Flawless balance sheet average dividend payer.


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

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


Market Performance


7 Day Return

26.3%

SUVEN

-1.6%

IN Pharmaceuticals

-1.5%

IN Market


1 Year Return

-78.0%

SUVEN

3.2%

IN Pharmaceuticals

10.7%

IN Market

Return vs Industry: SUVEN underperformed the Indian Pharmaceuticals industry which returned 2.8% over the past year.

Return vs Market: SUVEN underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

SUVENIndustryMarket
7 Day26.3%-1.6%-1.5%
30 Day-84.0%-0.9%-2.7%
90 Day-84.0%2.9%1.3%
1 Year-78.0%-78.0%4.5%3.2%12.7%10.7%
3 Year-71.8%-72.2%-13.4%-15.5%22.0%15.1%
5 Year-78.2%-78.8%-13.7%-16.5%34.5%22.0%

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

1 month ago | Simply Wall St

Is There More To The Story Than Suven Life Sciences's (NSE:SUVEN) Earnings Growth?

Valuation

Is Suven Life Sciences 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: SUVEN (₹48.75) is trading below our estimate of fair value (₹187.31)

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


Price To Earnings Ratio

PE vs Industry: SUVEN is poor value based on its PE Ratio (225.1x) compared to the Pharmaceuticals industry average (16.6x).

PE vs Market: SUVEN is poor value based on its PE Ratio (225.1x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SUVEN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SUVEN is good value based on its PB Ratio (0.7x) 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 0 analysts?

25.0%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SUVEN's forecast earnings growth is above the savings rate (6.5%).

Earnings vs Market: Insufficient data to determine if SUVEN's earnings are forecast to grow faster than the Indian market

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

Revenue vs Market: Insufficient data to determine if SUVEN's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if SUVEN's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SUVEN'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?

-4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUVEN has a large one-off gain of ₹209.6M impacting its December 31 2019 financial results.

Growing Profit Margin: SUVEN's current net profit margins (0.7%) are lower than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: SUVEN's earnings have declined by -4.7% per year over the past 5 years.

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

Earnings vs Industry: SUVEN had negative earnings growth (-97.1%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (22.7%).


Return on Equity

High ROE: SUVEN's Return on Equity (0.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Suven Life Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: SUVEN's short term assets (₹5.5B) exceed its short term liabilities (₹2.6B).

Long Term Liabilities: SUVEN's short term assets (₹5.5B) exceed its long term liabilities (₹529.4M).


Debt to Equity History and Analysis

Debt Level: SUVEN's debt to equity ratio (13.2%) is considered satisfactory.

Reducing Debt: SUVEN's debt to equity ratio has reduced from 21.5% to 13.2% over the past 5 years.

Debt Coverage: SUVEN's debt is well covered by operating cash flow (84.4%).

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


Balance Sheet

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

Debt Coverage by Assets: SUVEN's debt is covered by short term assets (assets are 4.5x debt).


Next Steps

Dividend

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

5.13%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%0.6%markettop25%2.6%industryaverage0.8%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: SUVEN's dividend (5.13%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: SUVEN's dividend (5.13%) is in the top 25% of dividend payers in the Indian market (2.55%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (693.2%), SUVEN's dividend payments are not 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

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

9.4yrs

Average management tenure


CEO

Venkat Jasti (70yo)

15.3yrs

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: Venkat's total compensation ($USD817.26K) is above average for companies of similar size in the Indian market ($USD50.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Venkateswarlu Jasti
Executive Chairman & CEO15.3yrs₹58.31m0.00079% 46.7k
Sudharani Jasti
Whole-Time Director30.9yrs₹29.16m0.00079% 46.7k
N. V. Ramakrishna
Vice President of Discovery Research17.9yrsno datano data
M. Kumar
Chief Financial Officer0.08yrsno datano data
Shrenik Soni
Company Secretary & Compliance Officer0.08yrsno datano data
Kalyani Jasti
President of US Operations9.4yrsno data0.00079% 46.7k
V. Murthy
Vice-President and Technical Consultant0yrsno datano data
C. Rajendiran
Vice President of Process Research & Development0yrs₹7.05mno data
Mohan Manam
Vice-President of Business Development & Regulatory Affairs and Technical Consultant0yrsno datano data
A. Reddy
Vice-President of Research & Development and Technical Consultant0yrs₹3.40mno data

9.4yrs

Average Tenure

64.5yo

Average Age

Experienced Management: SUVEN's management team is seasoned and experienced (9.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Venkateswarlu Jasti
Executive Chairman & CEO15.3yrs₹58.31m0.00079% 46.7k
Sudharani Jasti
Whole-Time Director30.9yrs₹29.16m0.00079% 46.7k
Maripuri Naidu
Independent Non Executive Director21.4yrs₹230.00k0.0027% 162.4k
Muddusetty Gopalakrishna
Independent Non Executive Director7.3yrs₹280.00kno data
Seyed Hasnain
Non-Independent & Non-Executive Director9.8yrs₹240.00kno data
Santanu Mukherjee
Independent Non-Executive Director1.8yrs₹270.00kno data
J.A.S. Padmaja
Additional & Non-Executive Independent Director1.3yrs₹160.00kno data

7.3yrs

Average Tenure

65yo

Average Age

Experienced Board: SUVEN's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Suven Life Sciences Limited
  • Ticker: SUVEN
  • Exchange: NSEI
  • Founded: 1989
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹5.906b
  • 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, Services, and Research and Development segments. The company develops and produces bulk drugs and intermediates under contract manufacturing services. It also provides a range of drug discovery and development support services to pharma and biotech companies. In addition, the company focuses on discovering and developing new chemical entities (NCE) in central nervous system therapies for the treatment of cognitive disorders, major depressive disorders, sleep disorders, psychiatric disorders, pain and inflammation, and gastro-intestinal motility disorders. Further, it develops and manufactures NCE based intermediates, active pharmaceutical ingredients, specialty chemicals, and formulated drugs under contract research and manufacturing services for pharmaceutical, biotechnology, and chemical companies, as well as collaborative research project, clinical trial, and testing and analysis services. The company was formerly known as Suven Pharmaceuticals Pvt. Ltd. and changed its name to Suven Life Sciences Limited in 2003. The company was founded in 1989 and is headquartered in Hyderabad, India. Suven Life Sciences Limited is a subsidiary of Jasti Property and Equity Holdings Private Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:05
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
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.