Should Suven Pharmaceuticals Share be Buy/Sell?, Suven Price Targets 2025, 2026 and 2030

Suven Pharmaceuticals Ltd., a prominent Indian bio-pharmaceutical company, specializes in developing and manufacturing new chemical entities (NCEs), active pharmaceutical ingredients (APIs), and formulated drugs. Here’s an overview of its current financial standing and future potential.

Key Figures of Suven Pharmaceuticals

Market Capitalization: ₹31,570 crore
Share Price: ₹1,240
P/E Ratio: 130 (higher than industry average of 34.3)
Debt to Equity Ratio: 0.02 (indicating low debt)
Promoter Holding: 50.1% (down by 9.9% over three years)
Dividend Yield: 0.00%

Strengths

• Strong OPM: Operating Profit Margin consistently above 30%.
• Debt-Free Status: Very low debt enhances financial stability.
• Increased FII and DII Holdings: Reflects institutional confidence.
• Good Cash Flow: Free cash flow at ₹733 crore.

Weaknesses and Risks

• High P/E Ratio: Considered overvalued compared to industry.
• Declining Profits: Net profit down by 9.44% over three years.
• Slow Sales Growth: Only 1.36% growth observed.

Should You Buy or Sell Suven Pharmaceuticals Shares?

• Reasons to Buy: Strong financial position and profitability.
• Reasons to Sell: High valuation and declining profits.

In conclusion, Suven Pharmaceuticals may be suitable for long-term investors seeking stability in the pharmaceutical sector, while short-term investors should proceed with caution given its high P/E ratio.