Suven Life Sciences Limited (SUVEN) AI Stock Analysis

• Market Cap: ₹30.21B
• Dividend Yield: N/A
• Average Volume (3M): 14.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 141
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -4.48
• Shares Outstanding: 227,474,210
• 10 Day Avg. Volume: 16,308
• 30 Day Avg. Volume: 14,834
• PEG Ratio: -0.31
• Price to Book (P/B): 24.25
• Price to Sales (P/S): 400.69
• P/FCF Ratio: -14.36
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ₹128.00 ▼(-22.42% Downside)

The score is driven primarily by very weak financial performance—sharp profitability deterioration, negative gross profit, and persistent operating/free-cash-flow burn—partly offset by minimal leverage. Technicals add pressure with the stock trading below key moving averages and negative MACD, while valuation provides limited support because the negative P/E reflects ongoing losses and no dividend yield is available.

Positive Factors

Low financial leverage

Near-zero debt materially reduces solvency and interest-service risk, giving management structural flexibility to prioritize R&D or strategic partnerships. Over a multi-month horizon this lowers default risk and preserves options for raising capital on better terms if needed.

Fee-based CRO business model

A services-based contract research model creates recurring, fee- or milestone-driven revenue streams tied to clients' development programs. Structural outsourcing trends in pharma support steady addressable demand, enabling multiyear engagements and predictable backlog when client relationships are strong.

Specialized discovery capabilities

Domain expertise in medicinal chemistry and discovery support is a durable competitive advantage that attracts high-complexity projects. Specialized scientific capabilities increase switching costs, support premium service pricing, and help sustain client relationships across multi-year discovery programs.

Negative Factors

Declining revenue and negative margins

A sharp revenue decline with deeply negative net margin and negative gross profit signals structural demand, pricing, or cost issues. Persistent margin erosion undermines scalability and the ability to invest in capabilities, making operational recovery harder absent meaningful business model changes.

Persistent cash burn

Repeated negative operating and free cash flows indicate the business is not self-funding. Over several months this creates reliance on external financing or asset sales, constrains capacity to invest in R&D, and raises dilution or solvency risk if losses persist.

Eroding equity / weakened balance sheet

Sustained losses have materially reduced shareholders' equity, lowering the firm's capital cushion. Even with low debt, shrinking equity increases vulnerability to shocks, limits strategic options, and makes future fundraising more dilutive or costly, impeding long-term resilience.

Suven Life Sciences Limited Business Overview & Revenue Model

Company Description

Suven Life Sciences Limited, a clinical-stage biopharmaceutical company, focuses on the acquisition, development, and commercialization of novel therapeutics for the treatment of neurodegenerative disorders in India, the United States, Europe, and internationally. The company engages in drug discovery and development of new chemical entities (NCEs) in central nervous system therapies. Its product candidates include SUVN-502 for the treatment of Alzheimer's disease and neuropsychiatric symptoms; SUVN-G3031, a potent and selective histamine H3 receptor inverse agonist for the treatment of sleep and cognitive disorders; and SUVN-911, a novel, potent, and selective a4ß2 nicotinic acetylcholine receptor antagonist for the treatment of depressive disorders. The company is also developing SUVN-D4010, a potent, selective, and orally bio-available and brain penetrant 5-HT4 receptor partial agonist for the treatment of cognitive disorders; SUVN-I6107 for the treatment of cognitive disorders and schizophrenia; SUVN-M8036 for the treatment of psychiatric disorders; and SUVN-D1044 for the treatment of gastrointestinal disorders. The company was formerly known as Suven Pharmaceuticals Pvt. Ltd. and changed its name to Suven Life Sciences Limited in 2003. The company was incorporated in 1989 and is headquartered in Hyderabad, India. Suven Life Sciences Limited is a subsidiary of Jasti Property and Equity Holdings Private Limited.

How the Company Makes Money

Suven Life Sciences Limited Financial Statement Overview

Summary

Financial performance is very weak: revenue declined in FY2025 (-12.1%) and profitability deteriorated sharply with a deeply negative net margin (-24.2%) and negative gross profit, while operating losses persist. Cash flow is a major risk with consistently negative operating and free cash flow, indicating ongoing cash burn. The main offset is very low debt, but equity erosion from sustained losses weakens the capital base.

Income Statement

Operating performance is very weak and deteriorating. Revenue fell in FY2025 (-12.1%) after being roughly flat-to-down in prior years, and profitability is deeply negative: FY2025 shows a sharply worse net margin (-24.2%) versus FY2024 (-9.0%). Gross profit also turned negative in FY2025, indicating severe cost pressure or adverse mix, while operating losses (EBIT/EBITDA) remain substantial across the period—leaving limited evidence of an earnings recovery trajectory.

Balance Sheet

Leverage is a key strength: debt is essentially zero in FY2025 (and very low in prior years), which reduces solvency risk. However, the balance sheet has weakened materially as equity declined sharply from FY2024 to FY2025, reflecting sustained losses; returns on equity are deeply negative in FY2025, signaling value erosion. Overall, the company has low financial leverage but shrinking capital buffers.

Cash Flow

Cash generation is consistently negative. Operating cash flow is deeply negative every year provided (including FY2025), and free cash flow is also substantially negative, indicating the business is not self-funding. While free cash flow is not worse than net income in several years (i.e., losses are accompanied by similarly negative cash flow), the persistent cash burn raises funding and sustainability risk unless operations improve or external support is available.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	75.17M	66.56M	116.93M	135.39M	118.44M	134.78M
Gross Profit	-17.93M	-276.33M	108.69M	129.74M	-137.31M	133.75M
EBITDA	-1.78B	-1.55B	-992.78M	-1.11B	-1.17B	-721.87M
Net Income	-1.84B	-1.61B	-1.05B	-1.18B	-1.22B	-721.51M
Balance Sheet
Total Assets	0.00	1.35B	2.85B	3.89B	1.08B	1.28B
Cash, Cash Equivalents and Short-Term Investments	600.05M	600.05M	2.40B	2.31B	504.36M	463.54M
Total Debt	0.00	0.00	7.10M	16.05M	32.09M	47.64M
Total Liabilities	-1.10B	251.97M	148.62M	135.91M	118.89M	204.12M
Stockholders Equity	1.10B	1.10B	2.70B	3.75B	961.45M	1.08B
Cash Flow
Free Cash Flow	0.00	-1.86B	-1.15B	-1.06B	-1.47B	-1.02B
Operating Cash Flow	0.00	-1.48B	-1.15B	-1.03B	-1.28B	-960.24M
Investing Cash Flow	0.00	1.49B	944.36M	-2.61B	-222.29M	558.40M
Financing Cash Flow	0.00	-7.10M	-10.54M	3.96B	1.46B	348.56M

Suven Life Sciences Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUPRIYA	75 Outperform	₹54.44B	29.85	―	0.13%	14.35%	15.79%
SEQUENT	58 Neutral	₹89.17B	122.46	―	―	14.39%	152.14%
AARTIDRUGS	57 Neutral	₹34.72B	17.44	―	0.24%	4.08%	31.52%
GUFICBIO	57 Neutral	₹30.69B	53.92	―	0.03%	7.78%	-34.68%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SPARC	44 Neutral	₹40.99B	-15.35	―	―	-0.82%	34.67%
SUVEN	43 Neutral	₹30.21B	-10.76	―	―	―	―