Marksans Pharma (MARKSANS)
StalwartFairStock Score: 39/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹333 |
| Market Cap | ₹15,090.35 Cr |
| P/E Ratio | 29.24 |
| ROCE | 20.03% |
| ROE | 19.09% |
| Dividend Yield | 0.3% |
| Profit Growth | 43.67% |
| Debt/Equity | 0.11 |
| Sales Growth | -0.17% |
| Promoter Holding | 43.87% |
| 52-Week Range | ₹155 — ₹349.7 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹66.71 |
Strengths
- ROE of 19.09% and ROCE of 20.03% show efficient capital allocation.
- Low debt-to-equity of 0.12 and a Piotroski F-Score of 7/9 indicate a healthy balance sheet.
- Promoter holding of 43.87% aligns management interests with minority shareholders.
- Latest quarter shows solid operating traction with ₹754 Cr sales and ₹114 Cr net profit.
Concerns
- Valuation is rich: P/E of 21.87 and P/B of 6.70 against book value of ₹28.83.
- Profit growth of 8.26% lags sales growth of 10.64%, hinting at margin pressure.
- PEG of 2.31 suggests the current price overpays for measured growth.
- FairStock Score of 32/100 and a sharp fall from ₹336.80 warn of unfavorable risk-reward.
AI Analysis
At first glance, Marksans Pharma has the marks of a business I can respect. It earns 19.09% on equity and 20.03% on capital employed, with debt-to-equity of only 0.12. That combination tells me management runs a disciplined operation. Promoters holding 43.87% also aligns their interests with mine. The current price, however, gives me no margin of safety. At ₹193.25, the P/E is 21.87 and P/B is 6.70, while book value is just ₹28.83. For a company growing sales by 10.64% and profit by only 8.26%, I am paying a price that assumes acceleration, not continuation. The PEG of 2.31 tells me growth is not cheap. A dividend yield of 0.46% is hardly a reward for waiting. Yes, the latest quarter is encouraging—₹754 Cr sales and ₹114 Cr net profit—but one quarter does not transform a valuation. The share has fallen from ₹336.80, but a decline in price can simply reflect a needed de-rating, not opportunity. With a FairStock Score of 32/100, I am reminded to be cautious. The Piotroski F-Score of 7/9 suggests the financial health is solid, but a solid company at too high a price remains a poor investment. I want quality, and Marksans has some; but I also want value, and at 21.87 times earnings, I don't see it. I would wait for a more reasonable price or better evidence that growth can accelerate. In Buffett's terms, a wonderful business can be a bad stock if bought dear.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer