Strides Pharma Science Ltd (STAR) – Complete Analysis Report:
Strides Pharma Science Ltd (STAR) trades at ₹942 with 3-day buying pressure from supports at ₹880-900, driven by Q2FY26 profit surge +84% and US growth outlook. Rally shows momentum but faces resistance; watch key levels for continuation amid pharma sector rotation.
Technical Analysis:
Pivot at ₹851 with supports ₹828/₹811/₹788; resistance ₹868/₹891/₹908. RSI neutral post-consolidation breakout, volume uptick confirms buying; above 50-day EMA ₹900 signals short-term bullish bias. 1-week +1.14%, 1-month -1.19% but 1-year +36% supports accumulation.
Fundamental Analysis:
Market cap ₹8,684 Cr, P/E 20.0 (peer median 30.85), ROE 151% (3-yr 50.4%), ROCE 14.7%, dividend yield 0.42%. Q2 revenue ₹1,221 Cr (+4.6% YoY), EBITDA +25.4%, PAT +84% operational; 5-yr profit CAGR 124% but sales growth lags at 10.6%.
Recent Buying Pressure Reasons:
3-day buying follows Q2 earnings beat (PAT +84% YoY) and $400M US FY28 target guidance; analysts target ₹1,220 amid niche generics momentum. Reduced debt + improving liquidity attracts value hunters post-consolidation.
Rally Continuation & Key Levels:
Rally likely continues to ₹975-1,000 if holds ₹880 support; breakdown below ₹811 risks pullback to ₹787. Target ₹1,220 on sustained volume; monitor Nov 21 Kotak conference for catalysts. Bullish if breaks ₹908 decisively.
Positive News & Events Impact:
Q2FY26 Earnings (Nov 5): Revenue +4.6%, EBITDA +25.4%, US/emerging markets growth focus; $400M US target FY28.
USFDA Approvals: Recent nods for anti-bacterial capsules, EIR for US facility boost regulated market credibility.
Management Change (Dec 3): New EVP-HR strengthens leadership amid expansion.
Impact: Enhances export outlook (100+ countries), niche softgels leadership; Piotroski F-score 7 signals improving health.
Positive Points:
Profit turnaround: 5-yr CAGR 124%, ROE 151% last year.
Debt reduction, EBITDA margins 19%, global generics presence (US/EU/Australia).
Strong quarterly growth, niche formulations edge.
Negative Points:
Poor 5-yr sales growth 10.6%, promoter holding low 27.9% (44.1% pledged).
Trading at 3.19x book value ₹299, management score poor.
Working capital days improved but inventory high 236 days.
Disclaimer & Disclosure:
Investogainer Research (SEBI Reg INH000012856) provides educational analysis only. No buy/sell recommendations. Past performance no guarantee of future results. Consult certified advisor. No personal holdings in STAR. Risks include forex volatility, regulatory delays.