Novartis India (NOVARTIND)
StalwartFairStock Score: 31/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹1,582.5 |
| Market Cap | ₹3,907.32 Cr |
| P/E Ratio | 40 |
| ROCE | 17% |
| ROE | 13.33% |
| Dividend Yield | 2.74% |
| Profit Growth | 16.6% |
| Debt/Equity | 0 |
| Sales Growth | 18.6% |
| Promoter Holding | 70.68% |
| 52-Week Range | ₹890 — ₹2,588 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹331.34 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
As a value investor, I first ask not what a business has done for me lately, but what it earns on capital and whether it can compound. On those tests, Novartis India concerns me. Revenue fell 7.63%, profit dropped 36.78%, and the Piotroski F-Score of 3/9 tells me the fundamentals are deteriorating. At ₹985.45, I am being asked to pay a P/E of 23.14 and a P/B of 3.35 against a book value of just ₹293.98. That is not a margin of safety; that is paying a rich multiple for a shrinking business. Benjamin Graham would call that speculation. The company does have strengths: debt-equity of 0.01, ROCE of 17%, ROE of 13.33%, and promoter holding of 70.68%, which aligns ownership. The 2.74% dividend yield offers some cushion, but it does not compensate for a 36.78% profit decline. The latest quarter, with sales of ₹86 Cr and net profit of ₹16 Cr, shows operating momentum is still weak. The stock is 44% below its 52-week high of ₹1780; that may look tempting, but a falling knife often has further to fall. FairStock Score of 9/100 is a clear red flag. I would need to see evidence that sales have stopped declining, margins are stabilizing, and the F-Score improves before considering an entry. This is not a stalwart or a smooth slow grower; it is a turnaround situation with execution risk. If the parent can rationalise costs, revive the portfolio, and improve capital allocation, there is potential. But as a minority investor, I should wait for the turn to appear in the numbers, not hope. Price changes daily; earning power and balance-sheet health take quarters. Let the data prove itself first.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer