Supriya Lifesci. (SUPRIYA)

FairStock Score: 41/100 — MIXED

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

Key Financials

Strengths

• Zero debt gives a very strong, distress-free balance sheet
• High ROE of 20.45% and ROCE of 27.46% indicate efficient capital use
• Promoter holding of 68.30% aligns management with minority shareholders
• Piotroski F-score of 7/9 suggests solid fundamental quality and no major red flags in financials
• Sales growth of 11.20% shows the business is still expanding

Concerns

• Profit growth of 6.93% lags sales growth, indicating margin pressure
• P/E of 28.40 and P/B of 5.95 look expensive given the modest growth rate
• PEG ratio of 3.13 suggests the market is paying too much for the current growth pace
• FairStock Score of 29/100 flags the stock as risky, while dividend yield is just 0.15%

AI Analysis

At ₹663, Supriya Lifesci trades at 28.4 times earnings and 5.95 times book, while profit grew only 6.93% last year. That is a rich price for a business whose own scorecard gives it a 29/100 risky tag. I don't need to know the molecule names to understand arithmetic: if earnings grow at seven percent, a 28 P/E implies you are paying more than four decades of current earnings growth, and the PEG ratio of 3.13 tells me the market has priced in too much optimism. What I like is the fortress-like balance sheet. The company carries zero debt, so it will not be forced into distress. ROE at 20.45% and ROCE at 27.46% are genuinely above average, and the Piotroski F-score of 7/9 supports the idea that recent numbers are not cheap accounting tricks. Promoter holding of 68.3% means owners are still in the boat with me. But a good business is not always a good investment. Sales grew 11.2% while profit grew only 6.93%, so margins are being squeezed. Dividend yield is a negligible 0.15%; patient shareholders get almost no cash while waiting. The stock has fallen from ₹1,085.50 to ₹663.10, and that may reflect a real deterioration, not just a mood swing. At this price, I would need a much larger margin of safety. I would rather watch and wait than reach for a business whose price has outrun its earnings. If growth accelerates and margins stabilise, the picture changes. For now, the risk-reward does not favour the long-term owner.

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