Anuh Pharma Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹82.89−₹0.84 (−1.00%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Anuh Pharma Limited engages in the manufacture and sale of bulk drugs and chemicals in India.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees323

Annual revenue₹772 Cr

How does it make money?

Turns over ₹772 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 323 employees supports ₹2.39 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin8.1%

Net margin5.3%

Revenue / employee₹2.39 Cr

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.

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

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

CIPLA LTDP/E 31.8x · ROE 9.8%

DIVI S LABORATORIES LTDP/E 83.0x · ROE 17.5%

What is its competitive advantage?Some evidence

ROCE of 15.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.4%

ROE11.7%

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 +46% while net margin moved -22% 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+46%

Margin effect-22%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ ROCE of 15.4% is comfortably above a typical cost of capital
✗ ROCE has fallen by 4.1 points — returns are eroding
✗ EBITDA margin of 8.1% is thin — little cushion if costs rise
✗ Net margin of 5.7% is slim
• Revenue has compounded at 13.5% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

67/ 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

18.8x

2Y Median

28.4x

24 monthly readings · mean 25.5x · range 12.5x–38.0x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 34% below its 2y median of 28.4x. 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 44% below the peer median of 33.3x.

vs. its own history

Cheap

28.4x median over 24 months · -34%

vs. sector peers

Cheap

33.3x median of 4 peers · -44%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

18.8x

P/B

2.36x

EV/EBITDA

13.2x

PEG

4.37

Dividend Yield

1.81%

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 94% over 3 years.
Valuation below its historical average
At 18.8x the stock trades 34% below its own median of 28.4x.
Very low debt
Debt/Equity of 0.02x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 10.1% to 8.1% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 15.0% to 11.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.6% to 15.4% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 103% against revenue growth of 46% — stock may not be moving.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹11 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 103% against revenue up 46% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 94% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 34% 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.
Cheaper than its peers
It trades 44% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 10.1% to 8.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 15.0% to 11.7%. 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 10% a year✓ 13.5% CAGR
Latest reported year was 3.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 8.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹11 Cr
Profit that never becomes cash eventually stops being profit.
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 12%✓ 15.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 6 neutral · 1 weak

Market Cap

₹831 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.8x

Fair

Fairly valued against the generic band

P/B Ratio

2.36x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.41

Profitable

Profitable on a per-share basis

ROE

11.7%

Moderate

Moderate capital efficiency

ROCE

15.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.02x

Low

Conservative leverage

Revenue Growth (YoY)

3.9%

Modest

Modest growth

Profit Growth (YoY)

37.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.81%

Modest

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

Free Cash Flow

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹82.89

Operating Margin

7.1%

Average

Average margins

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

2.22

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

49%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

87.2 / 84.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

35.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹527 Cr	₹647 Cr	₹662 Cr	₹772 Cr	+13.5%
EBITDA	₹53 Cr	₹77 Cr	₹64 Cr	₹62 Cr	+5.6%
EBITDA Margin	10.1%	11.9%	9.6%	8.1%	—
PAT (Net Profit)	₹36 Cr	₹60 Cr	₹47 Cr	₹41 Cr	+4.3%
EPS	₹3.61	₹5.99	₹2.36	₹4.1	+4.3%
ROE	15.0%	20.6%	14.5%	11.7%	—
ROCE	19.6%	26.8%	18.8%	15.4%	—
Total Debt	₹1 Cr	₹3 Cr	₹11 Cr	₹0 Cr	-59.9%
Free Cash Flow	₹52 Cr	₹8 Cr	₹17 Cr	-₹11 Cr	—

🟢 Revenue has grown at 13.5% a year over 3 years.

🟢 EBITDA has grown at 5.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.1% to 8.1% over 3 years (-2.0 pts).

🟢 PAT (Net Profit) has grown at 4.3% a year over 3 years.

🟢 EPS has grown at 4.3% a year over 3 years.

🔴 ROE has fallen from 15.0% to 11.7% over 3 years (-3.3 pts).

🔴 ROCE has fallen from 19.6% to 15.4% over 3 years (-4.1 pts).

🟢 Total Debt has shrunk at 59.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹52 Cr to -₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹557 Cr

Total Liabilities

₹205 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.9%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

05 Aug 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 positive1 mixed4 general

Anuh Pharma schedules 66th AGM on August 12, 2026

scanx.trade, 15 Oct

Anuh Pharma Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 06 AugAnalyst view

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

Anuh Pharma Q4 Profit Drops 6.4% to ₹11.7 Crore Despite 5% Revenue Rise

Sahi, 21 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Anuh Pharma up 7% on receiving WHO prequalification for anti-malarial API

Business Standard, 05 May

Lacklustre Performance Is Driving Anuh Pharma Limited's (NSE:ANUHPHR) Low P/E

Simply Wall Street, 04 Feb

Anuh Pharma: Best Stock in Its Sector? Key Metrics

Univest, 23 Sept

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak8.8/20

🟢Financial HealthStrong15/20

🔴GrowthWeak8.9/20

🟡ProfitabilityModerate7.1/15

🟢ValuationAttractive10.7/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓Revenue growth stays above 10% a year13.5% CAGR
✓EBITDA margin holds above 6%8.1%
✗Free cash flow remains positive-₹11 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 12%15.4%