Amkay Products Limited

Healthcare — Medical Instruments & Supplies · BSE

₹58.00+₹2.89 (+5.24%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Amkay Products Limited manufactures, assembles, and markets a portfolio of medical devices, disposables, and other healthcare products in India.

IndustryMedical Instruments & Supplies

SectorHealthcare

Employees123

Annual revenue₹42 Cr

How does it make money?

Turns over ₹42 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 123 employees supports ₹34.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹34.2 lakh

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.0% 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 +51% while net margin moved +1% 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+51%

Margin effect+1%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROCE of 13.0% is adequate but not distinctive
✗ ROCE has fallen by 12.1 points — returns are eroding
✗ EBITDA margin of 9.9% is thin — little cushion if costs rise
✗ Net margin of 5.5% is slim
• Revenue has compounded at 14.7% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

58/ 100

Fair

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

21.7x

3Y Median

15.8x

31 monthly readings · mean 18.6x · range 11.6x–48.1x

Sector Median

33.3x

median of 4 sector peers

⚠️Current valuation is approximately 38% above its 3y median of 15.8x. 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 35% below the peer median of 33.3x.

vs. its own history

Expensive

15.8x median over 31 months · +38%

vs. sector peers

Cheap

33.3x median of 4 peers · -35%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.2x

PEG

1.43

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 16% over 3 years.
Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 19.6% to 8.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.1% to 13.0% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Inventory building faster than salesFinancial
Inventory up 269% against revenue up 51% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 16% 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 35% 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 ₹0 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?

The price already assumes success
The stock trades 38% 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.
Returns on shareholder capital are falling
ROE has dropped from 19.6% to 8.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 11% a year✓ 14.7% CAGR
Latest reported year was -7.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 · 6 neutral · 3 weak

Market Cap

₹50 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.7x

Fair

Fairly valued against the generic band

P/B Ratio

1.90x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.67

Profitable

Profitable on a per-share basis

ROE

9.2%

Moderate

Moderate capital efficiency

ROCE

13.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

-7.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-77.7%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

5.9%

Average

Average asset productivity

Operating Margin

2.3%

Weak

Thin margins leave little room for error

Net Margin

5.5%

Average

Average bottom-line conversion

Current Ratio

3.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.59

Defensive

Steadier than the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

65.0 / 55.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

43.0

Neutral momentum

Financial Trend (5-Year)

Metric	FY22	FY23	FY24	FY25	FY26	3Y CAGR	4Y CAGR
Revenue	—	₹28 Cr	₹31 Cr	₹38 Cr	₹42 Cr	+14.7%	+14.7%
EBITDA	—	₹3 Cr	₹5 Cr	₹4 Cr	₹4 Cr	+9.6%	+9.6%
EBITDA Margin	—	11.4%	14.7%	11.2%	9.9%	—	—
PAT (Net Profit)	—	₹2 Cr	₹3 Cr	₹3 Cr	₹2 Cr	+15.2%	+15.2%
EPS	₹1.69	₹1.74	₹3.04	₹3.96	—	—	—
ROE	—	19.6%	—	13.9%	8.8%	—	—
ROCE	—	25.1%	—	18.3%	13.0%	—	—
Total Debt	₹4 Cr	₹5 Cr	—	₹3 Cr	₹4 Cr	-5.8%	-2.5%
Free Cash Flow	—	₹1 Cr	-₹1 Cr	-₹3 Cr	₹0 Cr	-32.9%	-32.9%

🟢 Revenue has grown at 14.7% a year over 3 years.

🟢 EBITDA has grown at 9.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.4% to 9.9% over 3 years (-1.4 pts).

🟢 PAT (Net Profit) has grown at 15.2% a year over 3 years.

🔴 ROE has fallen from 19.6% to 8.8% over 3 years (-10.8 pts).

🔴 ROCE has fallen from 25.1% to 13.0% over 3 years (-12.1 pts).

🟢 Total Debt has shrunk at 2.5% a year over 4 years.

🔴 Free Cash Flow has shrunk at 32.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹33 Cr

Total Liabilities

₹7 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.4%

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

Amkay Products Ltd Peer Comparison – Compare with Others

Value Research, 29 Aug

HANNAH JOSEPH HOSPITAL LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 16 Oct

Three IPOs To Debut On Dalal Street This Week; Quick Details Below

Goodreturns, 14 Oct

Amkay Products holds 19th AGM via video conferencing on Sep 30

scanx.trade, 01 Oct

Healthcare Stocks Today: Live Share Prices

Alice Blue, 25 Sept

Amkay Products Ltd Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Watch Items

Revenue growth is negative (-7.5%) 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

StrongFinancial Health · Growth

MiddlingValuation

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. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑