⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SAILIFE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | SAILIFE | Market Cap | 17,729 Cr. | Current Price | 839 ₹ | High / Low | 984 ₹ |
| Stock P/E | 62.8 | Book Value | 110 ₹ | Dividend Yield | 0.00 % | ROCE | 14.1 % |
| ROE | 11.0 % | Face Value | 1.00 ₹ | DMA 50 | 876 ₹ | DMA 200 | 842 ₹ |
| Chg in FII Hold | -1.09 % | Chg in DII Hold | 1.49 % | PAT Qtr | 83.0 Cr. | PAT Prev Qtr | 58.4 Cr. |
| RSI | 44.0 | MACD | -20.5 | Volume | 1,82,394 | Avg Vol 1Wk | 4,59,597 |
| Low price | 635 ₹ | High price | 984 ₹ | PEG Ratio | 0.26 | Debt to equity | 0.15 |
| 52w Index | 58.6 % | Qtr Profit Var | 89.2 % | EPS | 13.5 ₹ | Industry PE | 29.0 |
📊 Core Financials
- Quarterly PAT rose to 83 Cr from 58.4 Cr (+42%), showing strong sequential growth.
- ROE at 11.0% and ROCE at 14.1% indicate moderate capital efficiency.
- Debt-to-equity ratio at 0.15 reflects a healthy balance sheet with low leverage.
- Cash flows supported by improving profitability, though dividend payout is absent.
💹 Valuation Indicators
- P/E ratio: 62.8, significantly higher than industry average of 29.0, suggesting overvaluation.
- P/B ratio: ~7.6 (839 ₹ / 110 ₹ book value), showing premium pricing.
- PEG ratio: 0.26, indicating valuation is expensive relative to growth.
- Intrinsic value appears lower than current price, limited margin of safety.
🏢 Business Model & Competitive Advantage
- SAILIFE operates in pharmaceuticals and life sciences, focusing on specialty formulations.
- Competitive advantage lies in niche product offerings and R&D-driven growth.
- Strong potential in global healthcare demand, but valuations remain stretched.
📈 Entry Zone & Long-Term Guidance
- Entry zone: 780–820 ₹ range (near 200 DMA support at 842 ₹).
- Long-term holding viable for investors seeking exposure to specialty pharma growth.
- Accumulation should be cautious due to high valuations and weak technical indicators.
Positive
- Quarterly PAT growth (+89.2% YoY) shows strong earnings momentum.
- Low debt-to-equity ratio (0.15), ensuring financial stability.
- DII holdings increased (+1.49%), reflecting domestic institutional confidence.
Limitation
- High P/E (62.8) compared to industry average (29.0).
- Dividend yield at 0.00%, no income return for investors.
- ROE at 11.0% is modest relative to valuation multiples.
Company Negative News
- FII holdings decreased (-1.09%), showing reduced foreign investor confidence.
- Stock trading below 50 DMA (876 ₹) and near 200 DMA (842 ₹), reflecting technical weakness.
Company Positive News
- Quarterly PAT growth demonstrates strong operational performance.
- DII holdings increased, showing domestic support.
Industry
- Industry PE at 29.0, much lower than SAILIFE’s 62.8, highlighting sector undervaluation relative to SAILIFE.
- Pharmaceuticals and life sciences sector expected to grow steadily with rising healthcare demand.
Conclusion
- SAILIFE is fundamentally strong with improving profitability and low debt.
- Valuations remain stretched, making accumulation near 780–820 ₹ more attractive.
- Best suited for long-term investors seeking exposure to specialty pharma, but caution advised due to high valuation multiples and lack of dividend yield.
I can also extend this into a peer comparison with Divi’s Labs and Laurus Labs to highlight relative valuation and profitability strengths if you’d like.