SMS Pharmaceuticals Ltd
Ticker: SMSPHARMA
Decent
68/100
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Investing Reference
Price
275.78
Market Cap
2582.74
Debt/Equity
0.4858
ROE %
11.757
PB
4.0377
Promoter %
68.066
Pledge %
23.584
1Y Rev Growth %
10.542
5Y Rev Growth %
13.598
NP Margin %
8.762
NP Margin 5Y Avg %
7.457
Trading Reference
1M Return %
-5.468
6M Return %
30.134
1Y Return %
-21.014
% Away 52W High
28.273
% Away 52W Low
56.649
Daily Volume
109113
Investment Verdict
Risky
Score 56/100 · Position size: 6%
Higher volatility/weak areas. Consider only a small allocation if risk appetite is high.
Trading Verdict
Avoid
Score 34/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
SMS Pharmaceuticals Ltd is currently trading near a strong support level, with recent volume indicating increased buying interest. If it breaks above the resistance level, there is potential for a significant upside. However, if it falls below the support, it could face a notable downside risk.
Upside Probability: 25% | Downside Probability: 15%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
SMS Pharmaceuticals Ltd is a leading Indian manufacturer of active pharmaceutical ingredients (APIs) and intermediates, catering to both domestic and international markets. With a commitment to quality and innovation, the company plays a crucial role in the pharmaceutical supply chain, ensuring the availability of essential medicines. SMS Pharmaceuticals is dedicated to meeting the diverse needs of pharmaceutical companies, contributing to healthcare advancements in India and beyond.
- Established player in the Indian pharmaceutical sector
- Focus on quality and regulatory compliance
- Wide range of APIs and intermediates
- Strong export capabilities to global markets
- Commitment to innovation and R&D
- Contributes to affordable healthcare solutions
Investment Thesis
SMS Pharmaceuticals Ltd stands out with a credible promoter group, ensuring strong governance and strategic direction. The company is well-positioned to capitalize on the growing digital services sector, enhancing its market presence. Furthermore, its attractive valuation compared to peers presents a compelling investment opportunity for retail investors seeking growth in the pharmaceutical space.
- Strong promoter credibility ensures effective management and strategic growth.
- Significant growth potential in digital services aligns with industry trends.
- Attractive valuation compared to peers offers a margin of safety.
- Robust product pipeline supports long-term revenue growth.
- Established market presence enhances competitive advantage.
Opportunity vs Risk
Opportunities
- Growing demand for generic drugs
- Expansion into international markets
- Strong R&D pipeline
- Government support for pharma sector
- Strategic partnerships with global firms
Risks ⚠️
- Regulatory changes affecting operations
- Intense competition in the market
- Currency fluctuations impacting profits
- Dependence on key customers
- Supply chain disruptions
Peer Perspective
SMS Pharmaceuticals Ltd trades at a discount to peers like Aarti Drugs and Divi's Laboratories, primarily due to margin volatility. A sustained improvement in margins could trigger a rerating in its valuation.
Future Outlook
SMS Pharmaceuticals Ltd is well-positioned for growth, driven by increasing demand for its products. However, successful execution of its expansion plans and effective cost control will be critical to achieving sustainable profitability.
AI FAQs for Retail Users
- Q: What does SMS Pharmaceuticals Ltd do?A: SMS Pharmaceuticals Ltd is involved in manufacturing and supplying active pharmaceutical ingredients and formulations.
- Q: Is SMS Pharmaceuticals Ltd listed on Indian stock exchanges?A: Yes, SMS Pharmaceuticals Ltd is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
- Q: What are the main products of SMS Pharmaceuticals Ltd?A: The company primarily produces APIs for various therapeutic segments, including antibiotics and anti-diabetics.
- Q: How can I invest in SMS Pharmaceuticals Ltd?A: You can invest through a brokerage account by purchasing shares on the BSE or NSE.
- Q: What factors should I consider before investing in SMS Pharmaceuticals Ltd?A: Consider the company's financial health, market position, and the overall pharmaceutical industry trends.
📊 Stock Investment Checklist (100 Points)
SMS Pharmaceuticals Ltd • Updated: 2025-09-17 16:54:06
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10BusinessHighPharmaceutical sector shows potential but faces regulatory challenges.
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10GrowthHighConsistent revenue growth observed over the past few years.
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10ProfitabilityHighROE and ROCE are decent, but OCF is fluctuating.
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8ValuationHighP/E ratio is higher than industry average, indicating overvaluation.
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7BalanceHighModerate debt levels, but liquidity is a concern.
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6GovernanceGoodPromoter holding is good, but some pledging exists.
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5DriversGoodGrowth catalysts are present, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.
Final Score & Verdict
Score 68 / 100
• Decent
SMS Pharmaceuticals Ltd shows decent potential with consistent growth, but faces challenges in valuation and liquidity.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 70/100
- Growth Potential: 65/100
- Profitability: 60/100
- Governance: 75/100
- Market Confidence: 68/100