SAILIFE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

📊 Core Financial Analysis

Profitability & Returns

PAT Growth: ₹88.3 Cr vs ₹53.8 Cr — ~64% jump, showing strong earnings momentum.

EPS: ₹8.16 — decent, but not enough to justify the lofty valuation.

ROE (11.0%) & ROCE (13.9%) — moderate returns, slightly above average for mid-cap pharma.

Debt & Leverage

Debt-to-Equity: 0.17 — low leverage, indicating strong balance sheet.

No dividend payout — suggests earnings reinvestment, typical of growth-stage companies.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 102 Extremely high — overvalued vs industry PE of 34

P/B Ratio ~8.15 Rich valuation, not backed by ROE

PEG Ratio 0.45 Reasonable — implies growth potential, but valuation is stretched

Intrinsic Value ~₹600–₹680 Current price exceeds fair value by ~20–25%

🏢 Business Model & Competitive Edge

Operates in specialty pharmaceuticals, likely focused on niche therapies or CRAMS (Contract Research and Manufacturing Services).

Strong recent profit growth suggests operational efficiency or product success.

Competitive edge may lie in R&D capabilities, but high valuation demands sustained performance.

📉 Technical & Sentiment Indicators

RSI: 63.0 — nearing overbought zone.

MACD: 17.2 — bullish momentum.

Volume below average — rally may lack conviction.

DMA 50 & 200 trending up — positive trend.

FII & DII holdings up — strong institutional interest.

🧠 Investment Guidance

🔍 Entry Zone (If Undervalued)

Ideal Buy Range: ₹650–₹700

Closer to intrinsic value and technical support zones.

Reduces downside risk from valuation compression.

📈 Long-Term Holding View

Hold only if bought below ₹700.

Monitor earnings consistency and margin sustainability.

High P/E makes it vulnerable to corrections if growth falters.

Would you like a deeper dive into its product pipeline or a comparison with peers like Suven Pharma or Laurus Labs?

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