BDH Industries Limited

Healthcare — Drug Manufacturers - Specialty & Generic · BSE

₹445.00+₹24.30 (+5.78%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. 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 BDH Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

BDH Industries Limited engages in the manufacture and sale of therapeutic formulations for pharmaceuticals in India and Internationally. The company operates in two segments, Pharmaceuticals and Renewable Energy.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees95

Annual revenue₹94 Cr

How does it make money?

Turns over ₹94 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 95 employees supports ₹99.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹99.2 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?Some evidence

ROCE of 16.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +28% while net margin moved +3% 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+28%

Margin effect+3%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.21 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

59/ 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

21.9x

3Y Median

21.5x

40 monthly readings · mean 21.1x · range 12.4x–35.9x

Sector Median

33.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 21.5x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 34% below the peer median of 33.3x.

vs. its own history

Fair

21.5x median over 40 months · +2%

vs. sector peers

Cheap

33.3x median of 4 peers · -34%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.5x

PEG

2.27

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 58% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 20.3% to 16.4% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.62x — earnings must service borrowings before shareholders see anything.
🔴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 90% against revenue up 28% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹2 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 58% 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 34% 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?

Leverage amplifies any setback
Debt/Equity of 2.62x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 90% against revenue up 28%. 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 13%✓ 14.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 6% a year✓ 8.5% CAGR
Latest reported year was 20.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
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 13%✓ 16.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

₹256 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.9x

Fair

Fairly valued against the generic band

P/B Ratio

3.33x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹20.34

Profitable

Profitable on a per-share basis

ROE

14.0%

Moderate

Moderate capital efficiency

ROCE

16.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.62x

High

High leverage

Revenue Growth (YoY)

20.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

49.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.12%

Modest

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

Free Cash Flow

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

61.8x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

14.6%

Average

Average margins

Net Margin

11.7%

Good

Strong bottom-line conversion

Current Ratio

4.00

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.21

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

477.3 / 508.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹74 Cr	₹85 Cr	₹65 Cr	₹94 Cr	+8.5%
EBITDA	₹12 Cr	₹14 Cr	₹13 Cr	₹14 Cr	+5.6%
EBITDA Margin	16.0%	16.5%	20.7%	14.7%	—
PAT (Net Profit)	₹8 Cr	₹10 Cr	₹9 Cr	₹11 Cr	+9.6%
EPS	₹14.25	₹17.14	₹16.11	₹18.78	+9.6%
ROE	15.0%	15.9%	13.5%	14.0%	—
ROCE	20.3%	21.4%	17.9%	16.4%	—
Total Debt	₹5 Cr	₹9 Cr	₹1 Cr	₹2 Cr	-25.3%
Free Cash Flow	₹6 Cr	-₹4 Cr	₹15 Cr	-₹2 Cr	—

🟢 Revenue has grown at 8.5% a year over 3 years.

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

🔴 EBITDA Margin has fallen from 16.0% to 14.7% over 3 years (-1.3 pts).

🟢 PAT (Net Profit) has grown at 9.6% a year over 3 years.

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

🟡 ROE has held roughly flat at 14.0% over 3 years.

🔴 ROCE has fallen from 20.3% to 16.4% over 3 years (-3.8 pts).

🟢 Total Debt has shrunk at 25.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹6 Cr to -₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹99 Cr

Total Liabilities

₹22 Cr

Cash & Equivalents

₹29 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.8%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

07 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 mixed5 general

BDH Industries Ltd is Rated Hold by MarketsMOJO

MarketsMojo, 15 Oct

BDH Industries Ltd. Share Price Rise: Price and Peer View

Univest, 01 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

BDH Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

BDH Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 10 Sept

Maruti Suzuki, ABB India, Chennai Petro, Alkem Labs, Grasim, Sharda Cropchem Dividends: Last Day To Buy Shares To Qualify

NDTV Profit, 06 Aug

BDH Industries Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Profitability

MiddlingBusiness Quality · Financial Health · Valuation · 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. 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 ↑