Supriya Lifescience Limited

Healthcare — Biotechnology · NSE

₹886.20+₹13.60 (+1.56%)

DalalBaazaar Score

79 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

Low

Driven by small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Supriya Lifescience Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Supriya Lifescience Limited engages in the research and development, manufacture, and sale of bulk drugs and pharmaceutical chemicals in India and internationally.

IndustryBiotechnology

SectorHealthcare

Employees607

Annual revenue₹802 Cr

How does it make money?

Turns over ₹802 Cr a year. Of every ₹100 of sales, about ₹26 reaches shareholders as profit, with ₹38 left at the operating level before interest, tax and depreciation. Each of its 607 employees supports ₹1.32 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.32 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 22.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.5% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE32.0%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 25.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+25.0%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +78% while net margin moved +31% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+78%

Margin effect+31%

DalalBaazaar Score

79/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 36.0x already prices in growth
• P/E is close to its own historical median of 34.1x
✗ P/B of 5.96x is a steep premium to book

Quality vs. Valuation

Company Quality

89/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

36.0x

3Y Median

34.1x

40 monthly readings · mean 35.6x · range 22.4x–52.4x

Sector Median

16.5x

median of 4 sector peers

🟡Currently trading close to its 3y median of 34.1x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 117% above the peer median of 16.5x.

vs. its own history

Fair

34.1x median over 40 months · +5%

vs. sector peers

Expensive

16.5x median of 4 peers · +117%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

23.5x

PEG

1.11

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 31.0% to 37.7% over 3 years.
Debt is being paid down
Total debt is down 76% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 12.8% to 17.5%.
Return on capital is rising
ROCE has improved from 17.3% to 22.3%.
High return on capital employed
ROCE of 22.3% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 159% against revenue up 78% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 31.0% to 37.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 76% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹34 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 159% against revenue up 78%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 117% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 21.2% CAGR
Latest reported year was 32.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 36%✓ 37.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹34 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 22.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹7,132 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

36.0x

Fair

Fairly valued against the generic band

P/B Ratio

5.96x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹24.65

Profitable

Profitable on a per-share basis

ROE

17.5%

Strong

Strong capital efficiency

ROCE

22.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.45x

Low

Conservative leverage

Revenue Growth (YoY)

32.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-30.8%

Falling

Profits are shrinking

Dividend Yield

0.11%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹34 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

22.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

21.4%

Good

Healthy core-business profitability

Net Margin

22.7%

Good

Strong bottom-line conversion

Current Ratio

4.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

63%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

919.9 / 874.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

28.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹451 Cr	₹557 Cr	₹680 Cr	₹802 Cr	+21.2%
EBITDA	₹140 Cr	₹186 Cr	₹266 Cr	₹302 Cr	+29.3%
EBITDA Margin	31.0%	33.3%	39.2%	37.7%	—
PAT (Net Profit)	₹90 Cr	₹119 Cr	₹188 Cr	₹209 Cr	+32.5%
EPS	₹11.16	₹14.8	₹23.35	₹25.98	+32.5%
ROE	12.8%	14.6%	18.9%	17.5%	—
ROCE	17.3%	20.1%	24.2%	22.3%	—
Total Debt	₹22 Cr	₹5 Cr	₹5 Cr	₹5 Cr	-37.7%
Free Cash Flow	-₹44 Cr	-₹32 Cr	₹2 Cr	₹34 Cr	—

🟢 Revenue has grown at 21.2% a year over 3 years.

🟢 EBITDA has grown at 29.3% a year over 3 years.

🟢 EBITDA Margin has risen from 31.0% to 37.7% over 3 years (+6.7 pts).

🟢 PAT (Net Profit) has grown at 32.5% a year over 3 years.

🟢 EPS has grown at 32.5% a year over 3 years.

🟢 ROE has risen from 12.8% to 17.5% over 3 years (+4.6 pts).

🟢 ROCE has risen from 17.3% to 22.3% over 3 years (+5.1 pts).

🟢 Total Debt has shrunk at 37.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹44 Cr to ₹34 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,357 Cr

Total Liabilities

₹159 Cr

Cash & Equivalents

₹37 Cr

Operating Cash Flow

₹186 Cr

Capex

-₹152 Cr

Shareholding (proxy)

Institutional Holding

4.9%

Insider Holding

71.3%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

04 Sept 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹940

+6.1% vs CMP

Target Range

₹850 – ₹1,030

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 positive4 mixed1 general

SUPRIYA Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Should You Buy Supriya Lifescience Limited (NSE:SUPRIYA) For Its Upcoming Dividend?

Simply Wall Street, 31 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Supriya Lifescience vs Nifty 50: 1Y Return +17.39% vs -10.93%

Univest, 12 Oct

Supriya Lifescience shares tumble over 12% in fag-end trade; here's why

Business Today, 06 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Supriya Lifescience up 15% on healthy Q4 results; should you buy or hold?

Business Standard, 29 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Supriya Lifescience targets ₹1000 crore revenue by FY27 following 52% Q4 growth

Sahi, 01 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingRisk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑