Suven Pharmaceuticals Gains 4% After Cohance Merger Deal and Growth Plans
Business and Industry Overview:
Suven Pharmaceuticals Ltd is a company based in Hyderabad. It makes medicines and chemicals for other companies. The company started in 2018 after splitting from Suven Life Sciences. It works with clients in countries like North America, Europe, and Asia. Suven Pharmaceuticals is good at making special chemicals and medicines. They focus on making active ingredients and helping other companies create their products. The company can make small to large amounts of products, but it does not do certain processes like fluorination. The company has been growing well. For example, in the third quarter of FY2025, their revenue grew by 39.73% compared to last year. Suven Pharmaceuticals is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). As of April 2025, the stock price is ₹1,168.10. In March 2024, Suven Pharmaceuticals merged with Cohance Lifesciences. This will help the company grow even more and reach more markets.
Latest Stock News:
Suven Pharmaceuticals Ltd, as of April 21, 2025, is trading at ₹1,211.25 on the National Stock Exchange (NSE). The stock price has seen a 1.23% increase from its previous close of ₹1,159.25 on March 21, 2025. Over the past month, the stock has experienced a small decline of 1.24%. However, it has shown a positive growth of 2.20% over the last three months. When compared to last year, the stock price has surged significantly by 92.02%, which indicates strong growth and investor confidence in the company. In March 2024, Suven Pharmaceuticals completed a merger with Cohance Lifesciences, which is an important step for the company. The merger is expected to help the company expand its reach and improve its operations. It will also strengthen the company’s position in the pharmaceutical industry, leading to further growth in the future. The positive market reaction to the merger and the stock’s strong performance in the past year suggest that investors are optimistic about Suven Pharmaceuticals’ potential for success in the coming years.
Potentials:
Suven Pharmaceuticals is aiming to achieve $1 billion in revenue by 2030. To reach this goal, the company plans to focus on developing new technologies for making medicines. They are working on advanced drug technologies such as flow chemistry, mRNA technology, and peptide synthesis, which are important for creating new types of drugs. These technologies will allow Suven to stay ahead in drug development and offer cutting-edge medicines. In addition to this, Suven is growing by merging with other companies, which helps increase its market presence and revenue. A major merger happened in March 2025 with Cohance Lifesciences, which will help them expand their operations and reach more customers. This merger is a big step in Suven’s plan to grow. Suven is also investing heavily in building new and better factories and research centers. For example, they are building a large 80,000 sq ft facility in the USA. This facility will help them meet the growing demand for their medicines and expand their reach globally. The company is focusing on making specialized drugs and complex formulations. These are the types of medicines that are in high demand and require more advanced techniques to create. This focus will help Suven stay competitive in the global pharmaceutical market. Suven expects its revenue to grow significantly, from ₹2,392 crore in FY24 to ₹6,000 crore by FY29. This shows that the company is planning for steady growth over the next few years, to become a leading player in the global pharmaceutical industry.
Analyst Insights:
- Market capitalisation: ₹ 30,420 Cr.
- Current Price: ₹ 1,195
- 52-Week High/Low: ₹ 1,360 / 597
- P/E Ratio: 109
- Dividend Yield: 0.00%
- Return on Capital Employed (ROCE): 18.8%
- Return on Equity (ROE): 14.1%
Suven Pharmaceuticals Ltd. has shown good growth. In Q4 FY24, the company’s net profit went up by 77.28%. Its sales grew by 39.73%. These numbers show the company is doing well. The operating profit margin is 38%, which is high and shows good profit from sales. The company has also reduced its debt. It is almost debt-free, which is a good sign for its financial health. However, there are some risks. The P/E ratio is 109. This is much higher than other companies like Dr. Reddy’s Laboratories (P/E 18.41) and Cipla (P/E 24.51). A high P/E ratio can mean that the stock is expensive. It may be overvalued compared to its competitors. Another concern is that promoter holding has dropped by 9.9% over the last 3 years. This could mean that the promoters are not as confident in the company’s future. They might be selling their shares for some reason. The company is strong in the CRAMS sector and continues to grow. But the high P/E ratio and falling promoter confidence are risks to watch. Investors should be careful when buying this stock at its current price. There may be other stocks with lower risk and better value in the market.