Adeshwar Meditex Limited

Healthcare — Medical Instruments & Supplies · BSE

₹17.25₹0.00 (0.00%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Adeshwar Meditex Limited manufactures, processes, exports, distributes, and supplies medical consumables and healthcare solutions in India and internationally.

IndustryMedical Instruments & Supplies

SectorHealthcare

Employees24

Annual revenue₹56 Cr

How does it make money?

Turns over ₹56 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 24 employees supports ₹2.34 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin5.0%

Net margin2.3%

Revenue / employee₹2.34 Cr

Who are its competitors?

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

SUN PHARMACEUTICAL IND LP/E 34.9x · ROE 14.5%

CIPLA LTDP/E 31.8x · ROE 9.8%

DR. REDDY S LABORATORIESP/E 31.0x · ROE 8.8%

APOLLO HOSPITALS ENTER. LP/E 54.3x · ROE 22.0%

What is its competitive advantage?Little sign of one

Returns on capital of 5.9% 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.

ROCE5.9%

ROE3.4%

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 -32% while net margin moved -10% 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-32%

Margin effect-10%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 12.0% a year
✗ Profit has declined at 15.2% a year
✗ Latest-year revenue growth of -39.2% is below the longer-term trend — momentum is fading
✗ Profit fell 54.0% in the latest year

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

59/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

19.6x

3Y Median

13.1x

40 monthly readings · mean 15.1x · range 10.8x–22.8x

Sector Median

33.3x

median of 4 sector peers

⚠️Current valuation is approximately 49% above its 3y median of 13.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 41% below the peer median of 33.3x.

vs. its own history

Expensive

13.1x median over 40 months · +49%

vs. sector peers

Cheap

33.3x median of 4 peers · -41%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

19.6x

P/B

0.65x

EV/EBITDA

10.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 63% over 3 years.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 6.5% to 5.0% over 3 years.
Return on capital is falling
ROCE has declined from 13.6% to 5.9% — often a sign of competition or overexpansion.
Valuation above its historical average
At 19.6x the stock trades 49% above its own median of 13.1x.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 39% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 63% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 41% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹5 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 6.5% to 5.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 49% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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

1EBITDA margin holds above 3%✓ 5.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 5.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 4.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹25 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.6x

Fair

Fairly valued against the generic band

P/B Ratio

0.65x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.88

Profitable

Profitable on a per-share basis

ROE

3.4%

Weak

Weak capital efficiency

ROCE

5.9%

Weak

Low return on total capital employed

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

-39.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-54.0%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹17.25

ROA

2.5%

Weak

Assets generate little profit

Operating Margin

4.1%

Weak

Thin margins leave little room for error

Net Margin

2.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

4.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.79

Defensive

Steadier than the market

52W Range Position

52%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

16.8 / 16.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

60.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹82 Cr	₹80 Cr	₹84 Cr	₹56 Cr	-12.0%
EBITDA	₹5 Cr	₹5 Cr	₹4 Cr	₹3 Cr	-19.3%
EBITDA Margin	6.5%	6.4%	5.2%	5.0%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹2 Cr	₹1 Cr	-15.2%
EPS	₹1.44	₹1.39	₹1.43	—	—
ROE	6.3%	5.8%	5.6%	3.3%	—
ROCE	13.6%	12.4%	10.2%	5.9%	—
Total Debt	₹16 Cr	₹14 Cr	₹12 Cr	₹6 Cr	-28.5%
Free Cash Flow	₹6 Cr	₹3 Cr	₹4 Cr	₹5 Cr	-5.4%

🔴 Revenue has shrunk at 12.0% a year over 3 years.

🔴 EBITDA has shrunk at 19.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.5% to 5.0% over 3 years (-1.5 pts).

🔴 PAT (Net Profit) has shrunk at 15.2% a year over 3 years.

🔴 ROE has fallen from 6.3% to 3.3% over 3 years (-3.0 pts).

🔴 ROCE has fallen from 13.6% to 5.9% over 3 years (-7.7 pts).

🟢 Total Debt has shrunk at 28.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 5.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹50 Cr

Total Liabilities

₹12 Cr

Total Debt

₹6 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.5%

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%
DR. REDDY S LABORATORIES	31.0x	8.8%
APOLLO HOSPITALS ENTER. L	54.3x	22.0%

Recent News

6 general

Adeshwar Meditex Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Adeshwar Meditex approves all resolutions at 19th AGM

scanx.trade, 23 Sept

Compare with

Equitymaster, 30 Sept

GKB Stock Price and Chart — NSE:GKB

TradingView, 18 Aug

MERCURY LAB. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 08 Oct

ADESHWAR Stock Price and Chart — BSE:ADESHWAR

TradingView, 28 Jun

Watch Items

Revenue growth is negative (-39.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak5.9/20

🟢Financial HealthStrong16.4/20

🔴GrowthWeak4.1/20

🔴ProfitabilityWeak4.5/15

🟡ValuationFair8.7/15

🟡RiskModerate6.2/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation.

This thesis breaks if

✓EBITDA margin holds above 3%5.0%
✗Debt / EBITDA stays below 2x2.1x
✓Free cash flow remains positive₹5 Cr
✗ROCE stays above 8%5.9%
✓Interest cover stays above 4x4.2x