Today, we’ll discuss a stock from the pharma sector “Supriya Lifescience“ which has shown impressive growth over the past year.
Supriya Lifescience specializes in manufacturing pharmaceutical APIs (Active Pharmaceutical Ingredients) and supplies its products not only in India but also to 86 other countries. Established in 1987, this Mumbai-based company has consistently delivered growth and rewarded its investors handsomely.
Let’s delve into how much Supriya Lifescience’s stock could grow in the coming year.
Fundamentals of Supriya Lifescience
Supriya Lifescience has a market capitalization of ₹3,211 crores and a face value of ₹2. The stock is listed on both NSE and BSE.
As of August 13, 2024, the stock is priced at ₹521, having delivered a return of 55.98% over the past year.
Return on Equity (ROE)
ROE indicates the profit generated by the company from every rupee of equity. Over the last three years, It has maintained an ROE of 19.4%, which is quite commendable.
Return on Capital Employed (ROCE)
ROCE measures the profitability from the company’s capital investments. This stock has a ROCE of 19.87%, which is considered excellent, especially when compared to the 10% benchmark for Indian companies.
Return on Assets (ROA)
ROA reflects the company’s earnings from its assets. With an ROA of 12.92%, Supriya Lifescience is performing well above the 5% standard deemed good for companies.
Debt to Equity Ratio
This ratio illustrates the level of debt a company holds. Supriya Lifescience has a Debt to Equity Ratio of 0, indicating it is debt-free—a strong indicator of robust financial health.
Compound Annual Growth Rate (CAGR)
CAGR tracks the company’s growth rate over time. Supriya Lifescience boasts a sales CAGR of 2288% and a profit CAGR of 991% over the last three years, reflecting stellar performance.
Promoters’ Holding
A company is considered stable when its promoters hold at least 50% of its shares. Supriya Lifescience’s promoters hold 68.30%, showcasing their commitment to the company’s future.
Operating Profit Margin (OPM)
OPM indicates a company’s profitability. Supriya Lifescience has an OPM of 35%, significantly higher than the 20% benchmark for Indian companies.
Earnings Per Share (EPS)
EPS measures the profit earned per share. Supriya Lifescience’s EPS stands at ₹14.80, reflecting its strong profitability.
Dividend Payout
A company that consistently pays dividends is generally financially sound. Supriya Lifescience has declared a dividend of 60 paise per share in 2024 so far.
Shareholding Pattern
As of June 2024, shareholding was as follows:
– Promoters: 68.30%
– Public: 21.27%
– Foreign Institutional Investors (FII): 4.95%
– Domestic Institutional Investors (DII): 5.48%
Supriya Lifescience’s Target
Currently trading around ₹521 (as of August 13, 2024), this stock could easily surpass ₹650 within the next year. Given its fundamentals and business expansion, it might even reach ₹800 in two years.
My Perspective
In my view, This stock is a fundamentally strong company with the potential to deliver over 50% returns in the coming year. It’s a promising investment for those with a long-term outlook.
*Note: The suggestions provided are based on thorough analysis, though errors may still occur. Always consult with your financial advisor before making any investment decisions.*
Most of the data presented here is from March 2024.
This is not investment advice. The stock market is subject to risks. Always seek expert advice before investing.
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