Achyut Healthcare Limited

Healthcare — Pharmaceutical Retailers · BSE

₹5.74+₹0.27 (+4.94%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Achyut Healthcare Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Achyut Healthcare Limited engages in manufacturing and sale of pharmaceutical formulations in India and internationally. The company offers its products in the form of tablets, capsules, oral liquids, and injectables.

IndustryPharmaceutical Retailers

SectorHealthcare

Employees7

Annual revenue₹12 Cr

How does it make money?

Turns over ₹12 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹1.66 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.66 Cr

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 1.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.5%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +330% while net margin moved -68% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+330%

Margin effect-68%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.9% is weak

Quality vs. Valuation

Company Quality

45/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

34/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

574.0x

3Y Median

574.0x

40 monthly readings · mean 1380.5x · range 163.0x–3898.5x

Sector Median

33.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 574.0x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 1622% above the peer median of 33.3x.

vs. its own history

Fair

574.0x median over 40 months · +0%

vs. sector peers

Expensive

33.3x median of 4 peers · +1622%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

198.8x

PEG

52.46

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 4.24x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.7 points, from 11.8% to 6.0%.
🔴Receivables growing faster than salesFinancial
Receivables up 432% against revenue up 330% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 20% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 11.8% to 6.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 4.24x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 432% against revenue up 330%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 1622% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 47% a year✓ 62.6% CAGR
Latest reported year was 1.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 1.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 4 neutral · 5 weak

Market Cap

₹139 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

574.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.87x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.01

Profitable

Profitable on a per-share basis

ROE

0.9%

Weak

Weak capital efficiency

ROCE

1.1%

Weak

Low return on total capital employed

Debt/Equity

4.24x

High

High leverage

Revenue Growth (YoY)

1.1%

Modest

Modest growth

Profit Growth (YoY)

43.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.8%

Weak

Thin margins leave little room for error

Net Margin

3.1%

Average

Average bottom-line conversion

Current Ratio

4.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

6.0 / 6.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3 Cr	₹6 Cr	₹3 Cr	₹12 Cr	+62.6%
EBITDA	₹0 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+30.2%
EBITDA Margin	11.8%	12.2%	25.4%	6.0%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹1 Cr	₹0 Cr	+10.9%
EPS	₹0.02	₹0.02	₹0.02	₹0.01	-17.6%
ROE	1.6%	1.6%	1.6%	0.9%	—
ROCE	2.1%	2.3%	2.1%	1.1%	—
Total Debt	—	₹2 Cr	₹2 Cr	₹1 Cr	—
Free Cash Flow	-₹4 Cr	-₹6 Cr	-₹15 Cr	-₹7 Cr	—

🟢 Revenue has grown at 62.6% a year over 3 years.

🟢 EBITDA has grown at 30.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.8% to 6.0% over 3 years (-5.7 pts).

🟢 PAT (Net Profit) has grown at 10.9% a year over 3 years.

🔴 EPS has shrunk at 17.6% a year over 3 years.

🟡 ROE has held roughly flat at 0.9% over 3 years.

🔴 ROCE has fallen from 2.1% to 1.1% over 3 years (-1.0 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹38 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.5%

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

1 mixed5 general

Achyut Health Q1 FY27 Results: Revenue Rs 3 Cr, PAT Rs 14 Lakh

Univest, 14 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Achyut Healthcare Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Compare FRONTLINE BUSINESS with

Equitymaster, 26 Sept

Achyut Healthcare Limited Receives BSE Listing Approval for 58,00,000 Equity Shares on Preferential Basis

scanx.trade, 07 May

Achyut Healthcare Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Zenith Life Care Acquires 2,00,000 Shares in Achyut Healthcare Through Preferential Allotment

scanx.trade, 23 Mar

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑