The average target price of SUPRIYA.NS is 843 and suggests 15% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation suggests no significant price movement, up or down, in the next 12 months. The most optimistic analyst has a target price of 843.0. This translates into 15% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 843.0. This suggests 15% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Supriya Lifescience Ltd., a bulk drugs company, engages in the research and development, manufacture, and sale of active pharmaceutical ingredients worldwide. It offers active pharmaceutical ingredients, such as anti-histamine, anti-allergic, anti-asthmatic, decongestant, analgesic/anti-pyretic/anesthetic, smoking cessation, antihypertensive, and anti-malarial products, as well as vitamins, feed additives, xanthine derivatives and beverages, and phytochemicals. The company was founded in 1987 and is headquartered in Mumbai, India.

India

Supriya Lifescience Limited

Healthcare

The company pays dividends from time to time. It has paid dividends in less than half the past ten years. Dividend per share (DPS) has grown yearly, and there is a clear trend. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. On average, the company pays dividends annually. 

SUPRIYA.NS reported revenue of INR 6 706mn in the last 12 months, up 21% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 45% from FY23 to INR 21.67. Market expects EPS to reach INR 14.30 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 5ppts over six months and grown 1ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 38.9% in the last 12 months, up from 38.4% in FY24. 

Historically, SUPRIYA.NS has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 27.0%, a growth from 26.0% in FY24. 

Supriya Lifescience Limited reported a return on equity (RoE) of 18.9% in the last 12 months, down from 19.3% in FY24. The market consensus projects an RoE of 17.5% in FY25, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to 16.9% in the last 12 months, a decrease from 17.2% in FY24. The market analysts predict that RoA will be 15.7% in FY25, again stronger than its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to 18.2%, above the peers. The consensus estimate for FY25 for RoCE is 23.2%, again ahead of the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.0 in the past several years. This ratio implies a average shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

SUPRIYA.NS has average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity may be unstable and is unfavourable on the days with the lowest activity. However, under highly turbulent market conditions, the trading volume tends to improve significantly. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note robust profitability, solid return on capital, strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, excessive margin volatility, and poor working capital management.

In highly turbulent market conditions, SUPRIYA.NS is highly volatile. In other words, the stock will fall substantially more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be significant. 

In normal market circumstances, SUPRIYA.NS is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to average. 

Considering past and projected metrics, the stock is moderately 'expensive' compared to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITD. 

Supriya Lifescience Limited

₹ 725

3

Supriya Lifescience Limited

₹ 725

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

₹ 725

About

About

About

About