Check Before You Invest : Sotac Pharmaceuticals Ltd

Snapshot

Q.1 Which industry/sub-sector does Sotac Pharmaceuticals Ltd belong to?

Sotac Pharmaceuticals Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Sotac Pharmaceuticals Ltd a good quality company?

Sotac Pharmaceuticals Ltd is a average quality company, based on a somewhat consistent 6-year financial track record.

Q.3 Is Sotac Pharmaceuticals Ltd undervalued or overvalued?

Sotac Pharmaceuticals Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Sotac Pharmaceuticals Ltd a good buy now?

Sotac Pharmaceuticals Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Sotac Pharmaceuticals Ltd?

Sotac Pharmaceuticals Ltd revenue growth is -7.1% for FY-2025, which is below its 5-year CAGR of 16.88%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Sotac Pharmaceuticals Ltd?

Sotac Pharmaceuticals Ltd Return on capital employed is 11.44% for FY-2025, which is below its 5-year historical median of 19.28%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Sotac Pharmaceuticals Ltd?

Sotac Pharmaceuticals Ltd Return on Asset is 5.93%, which is below its 5-year historical median of 8.8%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sotac Pharmaceuticals Ltd?

Sotac Pharmaceuticals Ltd Return on equity is 9.42% for FY-2025, which is below its 5-year historical median of 22.71%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Sotac Pharmaceuticals Ltd?

Sotac Pharmaceuticals Ltd Cash conversion cycle is 115 days, above its 5-year historical median of -5 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.77	1.27
ROE	9.42	22.71
ROCE	11.44	19.28
Cash Conversion Cycle	115 days	-5 days

Q.6 Gross Profit margin of Sotac Pharmaceuticals Ltd?

Sotac Pharmaceuticals Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.3% for FY-2025, which is above its 5-year median of 13.1%, indicating increasing margins.

Q.7 Operating Profit Margin of Sotac Pharmaceuticals Ltd?

Sotac Pharmaceuticals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.32% for FY-2025, which is in line with its 5-year median of 12.32% indicating stable margins.

Q.8 Net Profit Margin of Sotac Pharmaceuticals Ltd?

Sotac Pharmaceuticals Ltd Net Profit Margin is 7.65% for FY-2025, is in line with with its 5-year median of 7.65%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	14.3	13.1
Operating Profit Margin	12.32	12.32
Net Profit Margin	7.65	7.65

Q.9 Debt to Equity ratio of Sotac Pharmaceuticals Ltd?

Sotac Pharmaceuticals Ltd Debt-to-Equity ratio is 0.38, which is above with the industry average of 0.27, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Sotac Pharmaceuticals Ltd?

Sotac Pharmaceuticals Ltd Debt to cash flow from operations is -3.31, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sotac Pharmaceuticals Ltd?

Promoters hold 72.85% of the Sotac Pharmaceuticals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sotac Pharmaceuticals Ltd vs industry peers?

Sotac Pharmaceuticals Ltd revenue CAGR is 16.88%, compared to the industry median CAGR of 8.30%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-7.1	8.3
Gross Profit Growth	-10	14.7
Operating Profit Growth	-20	11.4
Net Profit Growth	-16.7	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.77	0.81
ROE	9.42	9.49
ROCE	11.44	11.91
Cash Conversion Cycle (days)	115.39	85

Valuation & price assessment

Q.1 Stock return of Sotac Pharmaceuticals Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of -0.26% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-0.3%	-6.4%

Q.3 Valuation ratios of Sotac Pharmaceuticals Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	27.09	28.71	31.09
Price to Book	2.44	2.79	2.85
Price to Sales	2.07	2.21	2.79
EV to EBITDA	14.81	15.16	15.87

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