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Check Before You Invest : Asston Pharmaceuticals Ltd

BSE: 544445 NSE: ISIN: INE0SJX01015
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Asston Pharmaceuticals Ltd belong to?
Asston Pharmaceuticals Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Asston Pharmaceuticals Ltd a good quality company?
Asston Pharmaceuticals Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Asston Pharmaceuticals Ltd undervalued or overvalued?
Asston Pharmaceuticals Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 14.3 16.53
Price to Book 1.62 1.88
Price to Sales 2.47 2.86
EV to EBITDA 10.24 11.67
Q.4 Is Asston Pharmaceuticals Ltd a good buy now?
Asston Pharmaceuticals Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Asston Pharmaceuticals Ltd?
Asston Pharmaceuticals Ltd revenue growth is 60.6% for FY-2025, which is above its 3-year CAGR of 37.65%, indicating faster growth.

Q.2 Gross Profit margin of Asston Pharmaceuticals Ltd?
Asston Pharmaceuticals Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.1% for FY-2025, which is in line with its 3-year median of 22.2%, indicating stable margins.

Q.3 Operating Profit Margin of Asston Pharmaceuticals Ltd?
Asston Pharmaceuticals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 25.54% for FY-2025, which is above its 3-year median of 23.2% indicating increasing margins.

Q.4 Net Profit Margin of Asston Pharmaceuticals Ltd?
Asston Pharmaceuticals Ltd Net Profit Margin is 17.27% for FY-2025, is above its 3-year median of 16.16%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 23.1 22.2
Operating Profit Margin (%) 25.54 23.2
Net Profit Margin (%) 17.27 16.16

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Asston Pharmaceuticals Ltd?
Asston Pharmaceuticals Ltd Return on Asset is 17.89%, which is above its 3-year historical median of 9.11%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Asston Pharmaceuticals Ltd?
Asston Pharmaceuticals Ltd Return on capital employed is 42.64% for FY-2025, which is above its 3-year historical median of 37.2%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Asston Pharmaceuticals Ltd?
Asston Pharmaceuticals Ltd Return on equity is 50.56% for FY-2025, which is in line with its 3-year historical median of 50.56%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Asston Pharmaceuticals Ltd?
Asston Pharmaceuticals Ltd Cash conversion cycle is 178 days, above its 3-year historical median of 154 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.04 0.92
ROE (%) 50.56 50.56
ROCE (%) 42.64 37.2
Cash Conversion Cycle 178 days 154 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Asston Pharmaceuticals Ltd?
Asston Pharmaceuticals Ltd Debt-to-Equity ratio is 0.68, which is above the industry average of 0.14, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Asston Pharmaceuticals Ltd?
Asston Pharmaceuticals Ltd Debt to cash flow from operations is -44.55, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Asston Pharmaceuticals Ltd?

Q.1 Promoter shareholding and pledge status of Asston Pharmaceuticals Ltd?
Promoters hold 50.66% of the Asston Pharmaceuticals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Asston Pharmaceuticals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Asston Pharmaceuticals Ltd vs industry peers?
Asston Pharmaceuticals Ltd revenue CAGR is 37.65%, compared to the industry median CAGR of 6.81%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 60.6 6.8
Gross Profit Growth (%) 209.1 12.6
Operating Profit Growth (%) 141.6 9.5
Net Profit Growth (%) 218.4 8.6
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.04 0.75
ROE (%) 50.56 9.05
ROCE (%) 42.64 11.33
Cash Conversion Cycle (days) 177.61 83

Valuation & price assessment

Q.1 Stock return of Asston Pharmaceuticals Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Asston Pharmaceuticals Ltd vs historical?
The current P/E ratio of 14.3 is lower than its historical median of 16.53, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 14.3 16.53 33.73
Price to Book 1.62 1.88 3.09
Price to Sales 2.47 2.86 3.38
EV to EBITDA 10.24 11.67 16.04

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