Strides Pharma Science Ltd (STAR) AI Stock Analysis

• Market Cap: ₹80.08B
• Dividend Yield: 0.41%
• Average Volume (3M): 12.54K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.27
• Revenue Growth: 6.22%
• EPS Growth: 123.83%
• Country: IN
• Employees: 3,065
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 21.90
• Shares Outstanding: 92,172,714
• 10 Day Avg. Volume: 13,417
• 30 Day Avg. Volume: 12,536
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 13.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,085.00
• Price Target Upside: 14.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹943.00 ▼(-0.82% Downside)

The score is driven primarily by improving financial performance and healthy cash generation, tempered by historical earnings volatility and some balance sheet constraints. Technicals are a secondary drag due to weak trend signals (negative MACD and price below key moving averages), while valuation is supportive with a reasonable P/E and modest yield.

Positive Factors

Strong free cash flow generation

Consistent conversion of earnings into free cash flow improves financial resilience and funds capital spending, regulatory compliance, and working capital without reliance on external financing. This durable cash generation supports reinvestment in manufacturing capacity and product development over several quarters.

Improving revenue and margins

Sustained improvement in revenue and gross/net margins signals operational efficiency gains and a healthier product mix. If maintained, higher margins enhance cash generation and buffer against pricing pressure in generics, enabling longer-term investments in R&D and capacity expansion.

Diversified pharma revenue streams

Multiple revenue pillars—finished dosage sales, contract manufacturing, and licensing—reduce reliance on any single market or product. This structural diversification smooths cash flows across product lifecycles, supports scale utilization of in-house manufacturing, and provides multiple paths for sustainable growth.

Negative Factors

Historical earnings volatility

Past swings into negative EBIT/EBITDA indicate execution and margin risk that can persist through product lifecycle shifts or tender losses. Such volatility undermines predictability for capex planning and sustained R&D spend, increasing the difficulty of delivering stable long-term cash flows and returns.

Balance sheet and cash position constraints

A moderate debt load and weaknesses in cash reserves constrain financial flexibility, limiting the company's ability to fund large capacity builds, absorb regulatory setbacks, or pursue acquisitions. Over time this can increase refinancing risk and reduce ability to seize strategic opportunities.

Dependence on regulatory approvals and scale

Business growth hinges on successful regulatory filings, timely approvals, and scalable manufacturing. These structural execution risks involve long lead times, inspection and compliance hurdles, and capital intensity—any delays or inspection findings can materially impair product launches and revenue durability.

Strides Pharma Science Ltd Business Overview & Revenue Model

Company Description

Strides Pharma Science Limited develops, manufactures, and sells pharmaceutical products in Africa, Australia, North America, Europe, Asia, India, and internationally. It operates through two segments, Pharmaceutical and Biopharmaceutical. The company offers pharma generics in various forms, such as tablets, hard and soft gelatin capsules, sachets, and liquids, as well as nasal spray, powders, solids, ointments, and creams. It also develops branded generics products for the treatment of chronic therapies, including women's health, central nervous system, cardiovascular, diabetes, dermatology, and probiotics under the Renerve, Unibrol, Combiart, Duotab, and Vitafer brands; and anti-retroviral, anti-malarial, anti-tuberculosis, Hepatitis, and other infectious disease drug segments for institutional business. The company was formerly known as Strides Shasun Limited and changed its name to Strides Pharma Science Limited in July 2018. Strides Pharma Science Limited was incorporated in 1990 and is headquartered in Bengaluru, India.

How the Company Makes Money

Strides Pharma Science Ltd generates revenue through multiple key streams, including the sale of generic pharmaceuticals, where it offers a portfolio of high-quality, affordable medications across various therapeutic categories. The company also earns income from contract research and manufacturing services, catering to other pharmaceutical companies by providing outsourced development and production capabilities. Additionally, Strides has established strategic partnerships and collaborations with global firms, enhancing its market reach and boosting revenue through joint ventures and licensing agreements. The company's focus on innovation and product development, particularly in niche markets and specialty therapies, further contributes to its earnings by capturing value in high-demand segments.

Strides Pharma Science Ltd Financial Statement Overview

Summary

Financials show a meaningful recovery with improved revenue and margins plus solid free cash flow generation. Offsetting this, historical volatility in profitability (including prior negative EBIT/EBITDA periods) and balance sheet pressure (cash position and liability management) keep the score below top-tier.

Income Statement

The income statement shows a strong recovery in net income and revenue growth in the latest period, indicating an improving trajectory. Gross profit margin and net profit margin have significantly improved, reflecting enhanced operational efficiency. However, historical volatility in net income and periods of negative EBIT and EBITDA margins suggest potential risks in maintaining consistent profitability.

Balance Sheet

The balance sheet presents a moderate debt-to-equity ratio, showing a balanced approach to leverage. The return on equity has improved substantially, signaling enhanced shareholder value creation. However, there is room for improvement in optimizing the equity ratio. The company faces challenges in maintaining a healthy cash position and managing liabilities effectively.

Cash Flow

The cash flow statement reflects strong free cash flow generation and positive operating cash flow, indicating solid cash management. The free cash flow to net income ratio suggests good conversion of profit into cash. Yet, fluctuations in free cash flow growth and historical challenges in maintaining consistent cash flows highlight potential risks.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.65B	46.24B	38.28B	36.68B	30.70B	32.80B
Gross Profit	19.28B	26.44B	8.51B	8.05B	14.57B	9.59B
EBITDA	9.09B	8.62B	4.39B	5.03B	-1.35B	7.25B
Net Income	3.63B	35.93B	-706.14M	-2.21B	-4.60B	2.68B
Balance Sheet
Total Assets	0.00	60.49B	58.40B	66.38B	69.76B	70.15B
Cash, Cash Equivalents and Short-Term Investments	1.99B	2.06B	2.90B	3.61B	1.84B	2.75B
Total Debt	0.00	18.80B	25.17B	30.30B	30.25B	23.48B
Total Liabilities	-25.86B	34.62B	37.68B	44.66B	45.93B	42.01B
Stockholders Equity	25.86B	25.52B	21.26B	22.12B	23.59B	27.77B
Cash Flow
Free Cash Flow	0.00	4.42B	5.83B	-505.27M	-4.01B	1.84B
Operating Cash Flow	0.00	6.84B	7.01B	444.11M	-2.58B	4.81B
Investing Cash Flow	0.00	-896.89M	-1.50B	3.02B	-1.19B	-5.21B
Financing Cash Flow	0.00	-6.43B	-6.93B	-2.14B	4.21B	-157.96M

Strides Pharma Science Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 950.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:STAR, the sentiment is Neutral. The current price of 950.75 is above the 20-day moving average (MA) of 872.67, above the 50-day MA of 891.13, and above the 200-day MA of 845.49, indicating a neutral trend. The MACD of -17.28 indicates Negative momentum. The RSI at 49.73 is Neutral, neither overbought nor oversold. The STOCH value of 65.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:STAR.

Strides Pharma Science Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUROPHARMA	74 Outperform	₹703.76B	20.81	―	0.33%	7.33%	-3.79%
IPCALAB	74 Outperform	₹357.56B	43.73	―	0.28%	9.66%	25.79%
ALKEM	72 Outperform	₹675.02B	28.88	―	0.80%	9.32%	11.25%
LAURUSLABS	66 Neutral	₹529.41B	62.45	―	0.15%	25.83%	421.20%
STAR	65 Neutral	₹80.08B	15.80	―	0.41%	6.22%	123.83%
GLENMARK	53 Neutral	₹552.56B	51.82	―	0.24%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Strides Pharma Science Ltd Corporate Events

Strides Pharma Publishes Unaudited Q3 and Nine-Month FY25 Results Extracts

Strides Pharma Science Ltd has published extracts of its unaudited financial results for the quarter and nine months ended 31 December 2025 in the Financial Express and Lokmat newspapers, in line with regulatory disclosure requirements. The company has also made these financial results available on its website, underscoring its compliance with securities listing norms and its ongoing commitment to transparent financial reporting for investors and other stakeholders.

Strides Pharma Closes Trading Window Ahead of December Quarter Results

Strides Pharma Science Limited has announced that its trading window for dealing in the company’s shares will be closed from January 1, 2026, in line with SEBI’s Prohibition of Insider Trading Regulations, 2015 and the company’s own code of conduct. The window will remain shut until 48 hours after the announcement of its financial results for the quarter and nine months ended December 31, 2025, with the exact date of the board meeting to approve these results to be communicated later, reinforcing the company’s adherence to regulatory norms and governance standards for market-sensitive information.

Strides Pharma Releases Earnings Call Audio for Q2 FY26

Strides Pharma Science Ltd announced the availability of the audio recording of its earnings call discussing the unaudited financial results for the quarter and half year ended September 30, 2025. This move is part of their compliance with SEBI regulations and aims to enhance transparency and communication with stakeholders.

Strides Pharma Releases Earnings Call Audio for Q2 FY26

Strides Pharma Science Limited announced the availability of the audio recording of its earnings call discussing the unaudited financial results for the quarter and half year ended September 30, 2025. This update is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting investor decisions and market perceptions.

Strides Pharma Releases Unaudited Financial Results for September 2025

Strides Pharma Science Limited has released its unaudited financial results for the quarter and half-year ending September 30, 2025. The results, approved by the Board of Directors, were submitted to the stock exchanges in compliance with SEBI regulations. The limited review report by the statutory auditors indicates no material misstatements, reflecting the company’s adherence to Indian Accounting Standards. This announcement is crucial for stakeholders as it provides insights into the company’s financial health and operational performance during the specified period.

Strides Pharma Achieves Record Quarterly EPS in Q2FY26

Strides Pharma Science Ltd reported its highest-ever quarterly earnings per share (EPS) for Q2FY26, with an operational profit after tax (PAT) of ₹1,403 million and an EPS of ₹15.2, marking an 84% year-on-year growth. The company’s strong performance was driven by a 4.6% increase in revenue to ₹12,208 million and a significant improvement in gross and EBITDA margins, reflecting its focus on profitability and financial discipline amidst currency challenges and ongoing capital expenditures.