Anthem Biosciences Limited

Healthcare — Biotechnology · NSE

₹824.50−₹17.60 (−2.09%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. 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 Anthem Biosciences Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Anthem Biosciences Limited operates as a contract research, development, and manufacturing organization in India, rest of Asia, North America, Europe, and internationally.

IndustryBiotechnology

SectorHealthcare

Employees2,282

Annual revenue₹2,124 Cr

How does it make money?

Turns over ₹2,124 Cr a year. Of every ₹100 of sales, about ₹28 reaches shareholders as profit, with ₹46 left at the operating level before interest, tax and depreciation. Each of its 2,282 employees supports ₹93.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹93.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO 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 26.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.5% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE32.0%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 20.3% and earnings to grow about 18.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+20.3%

Est. earnings growth+18.6%

Analysts7

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 +101% while net margin moved -24% 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+101%

Margin effect-24%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 81.2x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 87.3x
✗ P/B of 15.22x is a steep premium to book

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

32/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

81.2x

1.4Y Median

87.3x

17 monthly readings · mean 89.2x · range 74.6x–116.1x

Sector Median

16.5x

median of 4 sector peers

🟡Currently trading close to its 1.4y median of 87.3x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 391% above the peer median of 16.5x.

vs. its own history

Fair

87.3x median over 17 months · -7%

vs. sector peers

Expensive

16.5x median of 4 peers · +391%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

47.2x

PEG

5.28

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 57% over 3 years.
Cash generation is improving
Free cash flow is up 468% over 3 years.
High return on capital employed
ROCE of 26.8% 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

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 1.77x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.8% 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.
Deleveraging frees up earnings
Debt is down 57% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

Leverage amplifies any setback
Debt/Equity of 1.77x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 391% above the peer median. That premium needs a reason that persists, or it closes.

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

1Revenue growth stays above 20% a year✓ 26.2% CAGR
Latest reported year was -22.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 44%✓ 46.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹633 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 26.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 2 neutral · 5 weak

Market Cap

₹46,463 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

81.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

15.22x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹10.15

Profitable

Profitable on a per-share basis

ROE

19.5%

Strong

Strong capital efficiency

ROCE

26.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.77x

High

High leverage

Revenue Growth (YoY)

-22.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-12.8%

Falling

Profits are shrinking

Dividend Yield

0.24%

Modest

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

Free Cash Flow

₹633 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

54.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

28.8%

Good

Healthy core-business profitability

Net Margin

28.7%

Good

Strong bottom-line conversion

Current Ratio

5.54

Comfortable

Healthy short-term liquidity

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

872.2 / 891.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,057 Cr	₹1,419 Cr	₹1,845 Cr	₹2,124 Cr	+26.2%
EBITDA	₹501 Cr	₹562 Cr	₹753 Cr	₹980 Cr	+25.1%
EBITDA Margin	47.4%	39.6%	40.8%	46.1%	—
PAT (Net Profit)	₹385 Cr	₹367 Cr	₹451 Cr	₹592 Cr	+15.4%
EPS	₹6.86	₹6.54	₹8.04	₹10.43	+15.0%
ROE	22.1%	19.1%	18.7%	19.5%	—
ROCE	27.3%	23.6%	26.9%	26.8%	—
Total Debt	₹126 Cr	₹239 Cr	₹113 Cr	₹54 Cr	-24.7%
Free Cash Flow	₹111 Cr	-₹157 Cr	₹9 Cr	₹633 Cr	+78.5%

🟢 Revenue has grown at 26.2% a year over 3 years.

🟢 EBITDA has grown at 25.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 47.4% to 46.1% over 3 years (-1.2 pts).

🟢 PAT (Net Profit) has grown at 15.4% a year over 3 years.

🟢 EPS has grown at 15.0% a year over 3 years.

🔴 ROE has fallen from 22.1% to 19.5% over 3 years (-2.7 pts).

🟡 ROCE has held roughly flat at 26.8% over 3 years.

🟢 Total Debt has shrunk at 24.7% a year over 3 years.

🟢 Free Cash Flow has grown at 78.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,429 Cr

Total Liabilities

₹387 Cr

Cash & Equivalents

₹273 Cr

Operating Cash Flow

₹844 Cr

Capex

-₹211 Cr

Shareholding (proxy)

Institutional Holding

12.8%

Insider Holding

80.9%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

25 Jun 2026

Analyst Consensus

Recommendations

8 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹920.13

+11.6% vs CMP

Target Range

₹850 – ₹1,050

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

3 mixed3 general

Anthem Biosciences Share Price Fall Streak: Valuation

Univest, 14 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Anthem Biosciences share price: Why the stock has stalled

Value Research, 29 Jul

Jefferies initiates coverage on Anthem Biosciences with a Rs 1,050 target

The Economic Times, 21 Aug

ANTHEM Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Anthem Biosciences sees Q1 revenue dip but maintains FY27 growth outlook

scanx.trade, 10 OctResults

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

With EPS Growth And More, Anthem Biosciences (NSE:ANTHEM) Makes An Interesting Case

Simply Wall Street, 21 Jul

Watch Items

Revenue growth is negative (-22.6%) 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

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑