Sudeep Pharma (SUDEEPPHRM)

FairStock Score: 47/100 — MIXED

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

Key Financials

Strengths

• Strong growth: sales up 49.16% and profit up 65.31% in the latest quarter
• Excellent capital efficiency with ROCE of 35.65%
• Low leverage with debt/equity of only 0.19
• High promoter holding of 76.15% aligns management with shareholders
• Piotroski F-score of 7/9 indicates generally sound financial health

Concerns

• Expensive valuation at P/E of 45.82 and P/B of 10.35
• No dividend yield, so returns rely entirely on future growth
• Share price is still well below the 52-week high of ₹1,158.60, showing volatility
• FairStock Score of 48/100 is mixed, not a clean buy signal

AI Analysis

At first glance, Sudeep Pharma tests my patience. At ₹687.95, the market capitalises the business at ₹7,217 Cr, or 45.82 times earnings. That is not a bargain price. But Graham taught me not to judge by the multiple alone; I need to see whether growth is real and financials are sound. The latest quarter shows sales of ₹172 Cr and net profit of ₹48 Cr, with sales growth of 49.16% and profit growth of 65.31%. For a business to compound, profit must outrun sales, and here it is. The PEG ratio of 0.80 suggests the earnings yield is not as expensive as it looks, provided the growth can continue. What I like most is the balance sheet. Debt/equity is only 0.19, and ROCE is 35.65%. Those are exceptional numbers; they hint at a business with pricing power or capital-light traits, even if I cannot see the moat directly. The Piotroski F-score of 7/9 also supports a fundamentally healthy company. Promoters own 76.15%, so their interests are tied to mine. But I must be honest: there is zero dividend, so my return depends entirely on future earnings and share price. The share price has been cut from ₹1,158.60 to about ₹695, which reminds me that high expectations are dangerous. I would not pay 10.35 times book value without strong conviction. FairStock gives only 48/100, a mixed signal. This looks like a fast grower, not a stalwart. I would want to see continued high growth, steady margins, and no rise in debt before putting a large sum to work. If the growth falters, the P/E will hurt.

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