Astrazeneca Phar (ASTRAZEN)

FairStock Score: 47/100 — MIXED

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

Key Financials

Strengths

• High profitability: ROE of 26.08% and ROCE of 33.40%
• Rapid growth: sales up 34.49% and profit up 107.17%
• Very low leverage with debt-to-equity of 0.05
• Strong promoter holding of 75%, aligning management with shareholders
• Decent financial health indicated by Piotroski F-score of 7/9

Concerns

• Extreme valuation: P/E of 106.34 and P/B of 27.42 offer no margin of safety
• Graham Number of ₹746.42 is far below the market price of ₹8,449.40
• Negative EV/EBITDA of -85.25 raises questions about earnings quality
• Free cash flow of ₹96 Cr is minuscule relative to a ₹22,123 Cr market cap

AI Analysis

As a value investor, I look at Astrazeneca Phar with both respect and caution. The business quality is evident: return on equity is 26.08%, ROCE is 33.40%, and debt-to-equity is just 0.05. Profit growth of 107.17% and sales growth of 34.49% suggest a rapidly growing franchise, and a promoter holding of 75% aligns interests with minority shareholders. The Piotroski F-score of 7 also points to a fundamentally sound business. But the value investor in me checks the price. At ₹8,449.40, the stock trades at 106.34 times earnings and 27.42 times book value. Graham's defensive number, a rough intrinsic value floor, is only ₹746.42, implying a margin of safety of negative 1,085%. The DCF intrinsic value of ₹41.40 is even more extreme. Free cash flow is ₹96 Cr against a market cap of ₹22,123 Cr, so the celebrated earnings growth is not translating into meaningful cash yield for shareholders. The dividend yield is a negligible 0.36%, and the negative EV/EBITDA of -85.25 makes me question the quality of reported earnings. This is a high-return, low-debt, fast-growing business, but it is also a business where Mr. Market has priced in perfection. Graham would say that a wonderful business purchased at a terrible price is still a poor investment. I am not willing to pay 106 times earnings without a margin of safety. I would wait patiently for a much lower price or a much stronger cash generation track record before acting.

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