Amrutanjan Health Care Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹517.00+₹11.00 (+2.17%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Amrutanjan Health Care Limited manufactures, supplies, and sells ayurvedic pain balms and women hygiene products in India and internationally. It operates through OTC Products, Beverages, Women's Hygiene & Personal Care, and Others segments.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees661

Annual revenue₹502 Cr

How does it make money?

Turns over ₹502 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 661 employees supports ₹75.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹75.9 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 15.6% against a peer median of 14.5% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +33% 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+33%

Margin effect+10%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.43 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

60/ 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

27.7x

3Y Median

43.0x

40 monthly readings · mean 41.0x · range 25.4x–55.4x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 36% below its 3y median of 43.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 17% below the peer median of 33.3x.

vs. its own history

Cheap

43.0x median over 40 months · -36%

vs. sector peers

Fair

33.3x median of 4 peers · -17%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.8x

PEG

2.08

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 15.6% to 18.5% over 3 years.
Return on capital is rising
ROCE has improved from 18.0% to 20.4%.
High return on capital employed
ROCE of 20.4% is the mark of a business that converts capital into profit efficiently.
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

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 96% over 3 years, from ₹1 Cr to ₹2 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 84% against revenue up 33% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹19 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 15.6% to 18.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 36% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
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?

Sales are being booked faster than collected
Receivables are up 84% against revenue up 33%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 17%✓ 18.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹19 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 7% a year✓ 9.9% CAGR
Latest reported year was 9.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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 · 5 neutral · 2 weak

Market Cap

₹1,494 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.7x

Fair

Fairly valued against the generic band

P/B Ratio

4.04x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹18.67

Profitable

Profitable on a per-share basis

ROE

15.6%

Strong

Strong capital efficiency

ROCE

20.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.48x

Low

Conservative leverage

Revenue Growth (YoY)

9.5%

Modest

Modest growth

Profit Growth (YoY)

-47.4%

Falling

Profits are shrinking

Dividend Yield

1.45%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹19 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

2.2%

Weak

Thin margins leave little room for error

Net Margin

10.6%

Good

Strong bottom-line conversion

Current Ratio

2.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.43

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

508.3 / 507.3

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹378 Cr	₹420 Cr	₹451 Cr	₹502 Cr	+9.9%
EBITDA	₹59 Cr	₹69 Cr	₹76 Cr	₹93 Cr	+16.2%
EBITDA Margin	15.6%	16.4%	16.9%	18.5%	—
PAT (Net Profit)	₹40 Cr	₹45 Cr	₹51 Cr	₹58 Cr	+13.3%
EPS	₹13.63	₹15.5	₹17.58	₹20.03	+13.7%
ROE	13.7%	15.6%	15.6%	15.6%	—
ROCE	18.0%	20.9%	20.6%	20.4%	—
Total Debt	₹1 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+25.0%
Free Cash Flow	₹11 Cr	₹21 Cr	₹15 Cr	-₹19 Cr	—

🟢 Revenue has grown at 9.9% a year over 3 years.

🟢 EBITDA has grown at 16.2% a year over 3 years.

🟢 EBITDA Margin has risen from 15.6% to 18.5% over 3 years (+2.9 pts).

🟢 PAT (Net Profit) has grown at 13.3% a year over 3 years.

🟢 EPS has grown at 13.7% a year over 3 years.

🟢 ROE has risen from 13.7% to 15.6% over 3 years (+1.9 pts).

🟢 ROCE has risen from 18.0% to 20.4% over 3 years (+2.4 pts).

🔴 Total Debt has grown at 25.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹11 Cr to -₹19 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹509 Cr

Total Liabilities

₹139 Cr

Cash & Equivalents

₹30 Cr

Operating Cash Flow

₹36 Cr

Capex

-₹55 Cr

Shareholding (proxy)

Institutional Holding

10.9%

Insider Holding

49.2%

Corporate Actions

Dividend Rate

₹7.5

Ex-Dividend Date

11 Sept 2026

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 positive5 general

Anlon Healthcare (NSEI:AHCL) - Stock Analysis

Simply Wall Street, 15 Oct

Amrutanjan Health Care: Best Stock in Its Sector? Key Metrics

Univest, 23 Sept

Amrutanjan Health Care Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Quant MF raises Pfizer stake with Rs 131 cr purchase; Pari Washington buys over 2% in Amrutanjan Health...

Moneycontrol.com, 20 Aug

Amrutanjan Health Care shareholders approve ₹2.90 per share dividend

scanx.trade, 23 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Amrutanjan Health Care Slips 0.67% to ₹513.6; Stock Holds Above Key Support Amid Consolidation - Entry Point Alerts

siam.in, 30 Aug

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑