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Check Before You Invest : Strides Pharma Science Ltd

BSE: 532531 NSE: STAR ISIN: INE939A01011
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

Snapshot

Q.1 Which industry/sub-sector does Strides Pharma Science Ltd belong to?
Strides Pharma Science Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.
Q.2 Is Strides Pharma Science Ltd a good quality company?
Strides Pharma Science Ltd is a weak quality company, based on a inconsistent 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 Strides Pharma Science Ltd undervalued or overvalued?
Strides Pharma Science Ltd appears Overvalued, as its key valuation ratios are higher than 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 5-year
Historic Median
Price to Earnings 15.53 69.92
Price to Book 2.8 1.70
Price to Sales 1.84 2.63
EV to EBITDA 10.44 25.96
Q.4 Is Strides Pharma Science Ltd a good buy now?
Strides Pharma Science 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 Strides Pharma Science Ltd?
Strides Pharma Science Ltd revenue growth is 6.4% for FY-2026, which is below its 5-year CAGR of 7.94%, indicating slower growth.

Q.2 Gross Profit margin of Strides Pharma Science Ltd?
Strides Pharma Science Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.7% for FY-2026, which is above its 5-year median of 5.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Strides Pharma Science Ltd?
Strides Pharma Science Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.38% for FY-2026, which is above its 5-year median of 14.71% indicating increasing margins.

Q.4 Net Profit Margin of Strides Pharma Science Ltd?
Strides Pharma Science Ltd Net Profit Margin is 11.82% for FY-2026, is above its 5-year median of -3.7%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 12.7 5.6
Operating Profit Margin (%) 17.38 14.71
Net Profit Margin (%) 11.82 -3.7

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Strides Pharma Science Ltd?
Strides Pharma Science Ltd Return on Asset is 9.25%, which is above its 5-year historical median of -2.41%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Strides Pharma Science Ltd?
Strides Pharma Science Ltd Return on capital employed is 18.57% for FY-2026, which is above its 5-year historical median of 3.47%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Strides Pharma Science Ltd?
Strides Pharma Science Ltd Return on equity is 20.31% for FY-2026, which is above its 5-year historical median of -6.67%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Strides Pharma Science Ltd?
Strides Pharma Science Ltd Cash conversion cycle is 29 days, in line with its 5-year historical median of 29 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.14 1.02
ROE (%) 20.31 -6.67
ROCE (%) 18.57 3.47
Cash Conversion Cycle 29 days 29 days

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

Q.9 Debt to Equity ratio of Strides Pharma Science Ltd?
Strides Pharma Science Ltd Debt-to-Equity ratio is 0.54, which is above the industry average of 0.15, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Strides Pharma Science Ltd?
Strides Pharma Science Ltd Debt to cash flow from operations is 2.38, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Strides Pharma Science Ltd?

Q.1 Promoter shareholding and pledge status of Strides Pharma Science Ltd?
Promoters hold 29.00% of the Strides Pharma Science Ltd, with 33.79% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Strides Pharma Science Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Strides Pharma Science Ltd vs industry peers?
Strides Pharma Science Ltd revenue CAGR is 7.94%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 6.4 0
Gross Profit Growth (%) 46.3 11.5
Operating Profit Growth (%) 5.9 9.4
Net Profit Growth (%) 40.6 12.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.14 0.74
ROE (%) 20.31 8.82
ROCE (%) 18.57 10.94
Cash Conversion Cycle (days) 29.22 82

Valuation & price assessment

Q.1 Stock return of Strides Pharma Science Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -0.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-0.3% 13.7% 29.5% 6.7%
Q.2 Valuation ratios of Strides Pharma Science Ltd vs historical?
The current P/E ratio of 15.53 is lower than its historical median of 69.92, indicating that the stock is trading below its historical average valuation.
Q.3 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 15.53 69.92 29.21
Price to Book 2.8 1.70 2.86
Price to Sales 1.84 2.63 2.70
EV to EBITDA 10.44 25.96 15.83

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