Amanta Healthcare Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹182.55−₹5.98 (−3.17%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, 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, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Amanta Healthcare Limited operates as a pharmaceutical company engaged in developing, manufacturing and marketing a diverse range of sterile liquid products and parenteral products in Africa, Latin America, the United Kingdom, and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees460

Annual revenue₹284 Cr

How does it make money?

Turns over ₹284 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 460 employees supports ₹61.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹61.8 lakh

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 9.9% 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.

Peer median ROE14.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +10% while net margin moved -739% 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+10%

Margin effect-739%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

44/ 100

Expensive

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

43.9x

1.3Y Median

43.6x

15 monthly readings · mean 45.1x · range 36.9x–62.4x

Sector Median

33.3x

median of 4 sector peers

🟡Currently trading close to its 1.3y median of 43.6x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 32% above the peer median of 33.3x.

vs. its own history

Fair

43.6x median over 15 months · +1%

vs. sector peers

Expensive

33.3x median of 4 peers · +32%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

14.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Return on equity is rising
ROE has improved from -3.4% to 6.8%.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 13.4% to 9.9% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹32 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 32% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 3.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 20%✓ 21.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹32 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.1x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✗ 3.3% CAGR
Latest reported year was 5.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

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

1 good · 6 neutral · 4 weak

Market Cap

₹709 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

43.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.85x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.16

Profitable

Profitable on a per-share basis

ROE

6.8%

Weak

Weak capital efficiency

ROCE

9.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.11x

Moderate

Moderate leverage

Revenue Growth (YoY)

5.4%

Modest

Modest growth

Profit Growth (YoY)

-30.3%

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

-₹32 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

14.3%

Average

Average margins

Net Margin

5.0%

Average

Average bottom-line conversion

Current Ratio

1.69

Comfortable

Healthy short-term liquidity

52W Range Position

77%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

189.1 / 185.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹258 Cr	₹278 Cr	₹272 Cr	₹284 Cr	+3.3%
EBITDA	₹56 Cr	₹57 Cr	₹60 Cr	₹62 Cr	+3.7%
EBITDA Margin	21.6%	20.6%	21.9%	21.8%	—
PAT (Net Profit)	-₹2 Cr	₹4 Cr	₹11 Cr	₹15 Cr	—
EPS	₹-0.54	₹0.94	₹2.7	₹4.33	—
ROE	-3.4%	5.5%	10.9%	6.8%	—
ROCE	13.4%	15.1%	15.6%	9.9%	—
Total Debt	₹214 Cr	₹200 Cr	₹193 Cr	₹244 Cr	+4.5%
Free Cash Flow	₹36 Cr	₹45 Cr	₹26 Cr	-₹32 Cr	—

🟢 Revenue has grown at 3.3% a year over 3 years.

🟢 EBITDA has grown at 3.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 21.8% over 3 years.

🟢 PAT (Net Profit) has turned positive, from -₹2 Cr to ₹15 Cr.

🟢 EPS has turned positive, from ₹-0.54 to ₹4.33.

🟢 ROE has risen from -3.4% to 6.8% over 3 years (+10.1 pts).

🔴 ROCE has fallen from 13.4% to 9.9% over 3 years (-3.5 pts).

🔴 Total Debt has grown at 4.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹36 Cr to -₹32 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹558 Cr

Total Liabilities

₹338 Cr

Cash & Equivalents

₹81 Cr

Operating Cash Flow

₹48 Cr

Capex

-₹80 Cr

Shareholding (proxy)

Institutional Holding

7.2%

Insider Holding

62.9%

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 mixed1 negative4 general

Amanta Healthcare Share Price Near 52-Week High, Rs 206.40

Univest, 07 Oct

Amanta Healthcare Co-Promoter Acquires 63 Lakh Shares Representing 16.3% Stake Via Open Market

Sahi, 18 Jun

Amanta Healthcare revenue rises 5% in Q1FY27 as SteriPort expansion delays

scanx.trade, 03 AugCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Amanta Healthcare Lower Circuit Streak: Day 2 Price and Data

Univest, 09 Oct

Amanta Healthcare standalone net profit declines 7.21% in the March 2026 quarter

Business Standard, 19 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Amanta Healthcare shares web-link for FY26 annual report and AGM notice

scanx.trade, 25 Aug

Watch Items

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

DalalBaazaar Thesis

MiddlingProfitability · Valuation

WeakBusiness Quality · Financial Health · Growth · Risk

Points for each in the Score ↑

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.

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑