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

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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