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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
SMS Pharmaceuticals Limited is an India-based pharmaceutical manufacturing company. The Company is engaged in the business of manufacturing active pharma ingredients and their intermediates. Its product categories include anti-ulcer, anti-inflammatory, anti-migraine,…
Weekly engine runs — movement reflects the numbers, not analyst opinion.
A decent, fast-growing business, priced for perfection.
SMS Pharmaceuticals is scored on the pharma / healthcare framework. It keeps a slim 9.8% of every rupee of sales as net profit. Cash conversion lags the reported profit (CFO/PAT 0.67×) — worth a closer look. Free cash flow is worth about -1.5% of its market value.
Over the last 3 years revenue compounded at 19%/yr and profit at 183%/yr. Book value itself has compounded 20%/yr — the hallmark of a genuine compounder. Return on equity is a healthy 13.9%. In the latest quarter profit fell 4% versus the prior quarter.
At 52× earnings, the stock sits at the 92nd percentile of its own 2.6-year range — the expensive end of where it has historically traded. Today's price already implies ~18%/yr earnings growth sustained for a decade — a demanding bar. The books come through clean — a forensic grade of A, and Altman puts distress risk in the safe zone.
A plain-English restatement of the figures on this page — rules-based, for education and research context, not investment advice or a recommendation.
| Ratio | Company | Sector | Read |
|---|---|---|---|
| P/E | 39.93 | — | — |
| P/B | 5.54 | 4.1 | worse |
| EV/EBITDA | 25.56 | 19.33 | worse |
| ROE | 13.88 | — | — |
| ROCE | 13.5 | 14.41 | worse |
| ROA | 7.11 | 1.64 | better |
| Quick Ratio | 0.81 | 4.8 | worse |
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sun Pharmaceutical Industries | 40.6 | 5.0 | 13.8% |
| Divis Laboratories | 93.5 | 16.3 | 15.3% |
| Torrent Pharmaceuticals | 85.9 | 9.8 | 11.4% |
Revenue has grown every year across all 4 financial years shown. 19% CAGR over 3 years — steady double-digit compounder.
Net profit has risen every year — the hallmark of a compounder. Profit is growing faster than revenue (183% vs 19%) — margin expansion is at work. The latest year saw a +31% swing — check if it's a one-off or structural.
Operating margin has expanded from 1% to 13% — the business is keeping more of each rupee earned. The gap between operating and net margin is widening — interest or tax costs are rising.
ROE at 11% — modest; the capital isn't working hard. Capital efficiency improving — ROE up 10pp across the window.
EPS has grown every year — each share earns more than the last, consistently. Profit grew faster than EPS (183% vs 28%) — share dilution is eroding per-share value. 28% EPS CAGR — this is the rate at which each share's claim on earnings is compounding.
Operating cash flow has been positive every year — the business generates real cash, not just accounting profit. Investing outflows exceed operating cash — the company relies on external funding to finance expansion. Raising capital despite positive cash flow — could signal expansion plans or opportunistic fundraising.
When operating cash keeps pace with reported profit, earnings are cash-backed; a persistent shortfall is a quality flag.
Revenue fell 13% QoQ — could be seasonality or a genuine slowdown.
How today's P/E compares to the stock's own historical range. Dashed line = the 2.6y median.
Promoters hold 68.1% — heavily owner-operated with strong skin in the game. FIIs have accumulated for 3 straight quarters — sustained foreign institutional conviction. MF stake down 3.2pp — domestic funds are booking profits or rebalancing out.
Produced by a rules-based engine over licensed exchange fundamentals — every sentence above is derived from the numbers shown, no analyst or AI opinion involved. Education and research context, not investment advice. We are not SEBI-registered as an Investment Adviser or Research Analyst.