Sudarshan Pharma (543828)

FairStock Score: 44/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 45.26% and profit growth of 51.39% show strong business momentum
• PEG ratio of 0.66 suggests reasonable valuation relative to growth rate
• Piotroski F-Score of 7/9 indicates solid financial health and operational efficiency
• ROCE of 15.51% demonstrates acceptable capital allocation

Concerns

• Latest quarter net profit of ₹4 Cr on sales of ₹168 Cr implies a razor-thin margin of ~2.4%
• Trading at ₹116.30 near the 52-week high, giving no margin of safety after a massive run from ₹18.50
• No dividend yield, so total return is dependent solely on capital gains
• Missing debt/equity, book value, and promoter holding data limit full balance sheet assessment

AI Analysis

When I look at Sudarshan Pharma, I see a high-momentum specialty chemicals company, but I must separate price from value. Sales growing at 45.26% and profits at 51.39% are impressive numbers, and a PEG of 0.66 suggests that if this growth persists, the P/E of 31.81 may not be outrageous. Piotroski F-Score of 7/9 tells me the underlying business is financially improving, and ROCE of 15.51% shows decent capital efficiency. But I have to stop and ask: what am I really buying at ₹116.30, near the top of its 52-week range? The stock has already run from ₹18.50 to ₹116.30. That reeks of market enthusiasm. And the latest quarter worries me: ₹168 Cr in sales but only ₹4 Cr in net profit. That is a margin of barely 2.4%. If that is the new reality, the trailing earnings that support the P/E may be stale. There is no dividend, so my return depends entirely on further price appreciation. Graham would demand a margin of safety, and at this price, I don't see one. I also lack critical data—book value, debt-to-equity, promoter holding. I cannot judge financial strength properly. This is a fast grower, perhaps a good one, but I am not a buyer at this valuation. I would watch for whether profit margins recover, how much debt is on the books, and whether the promoter is confident enough to hold shares. If the growth story is real, there will be another opportunity to buy at a better price. Patience is a virtue in value investing.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer