Chandra Bhagat Pharma Limited

Healthcare — Medical Distribution · BSE

₹40.00−₹1.80 (−4.31%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

Chandra Bhagat Pharma Limited, a pharmaceutical company, markets pharmaceutical critical care and health care products in India and internationally.

IndustryMedical Distribution

SectorHealthcare

Employees45

Annual revenue₹112 Cr

How does it make money?

Turns over ₹112 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 45 employees supports ₹2.49 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin7.5%

Net margin2.7%

Revenue / employee₹2.49 Cr

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.

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

CIPLA LTDP/E 31.8x · ROE 9.8%

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

APOLLO HOSPITALS ENTER. LP/E 54.3x · ROE 22.0%

What is its competitive advantage?Some evidence

ROCE of 16.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE16.7%

ROE9.7%

Peer median ROE14.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -6% while net margin moved +259% 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-6%

Margin effect+259%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.38 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

88/ 100

Cheap

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

9.9x

3Y Median

36.2x

40 monthly readings · mean 50.6x · range 25.8x–111.7x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 73% below its 3y median of 36.2x. 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 70% below the peer median of 33.3x.

vs. its own history

Cheap

36.2x median over 40 months · -73%

vs. sector peers

Cheap

33.3x median of 4 peers · -70%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

9.9x

P/B

0.91x

EV/EBITDA

5.2x

PEG

0.20

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 3.5% to 7.5% over 3 years.
Debt is being paid down
Total debt is down 13% over 3 years.
Cash generation is improving
Free cash flow is up 70% over 3 years.
Return on equity is rising
ROE has improved from 3.3% to 9.2%.
Return on capital is rising
ROCE has improved from 9.9% to 16.7%.
Valuation below its historical average
At 9.9x the stock trades 73% below its own median of 36.2x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 567% against revenue growth of -6% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 567% against revenue up -6% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.5% to 7.5%. 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 73% 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 70% 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 ₹8 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?

Sales are being booked faster than collected
Receivables are up 567% against revenue up -6%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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

1EBITDA margin holds above 5%✓ 7.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✓ 3.2x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 16.7%
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

8 good · 3 neutral · 0 weak

Market Cap

₹30 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.9x

Cheap

Cheap against the generic band

P/B Ratio

0.91x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.04

Profitable

Profitable on a per-share basis

ROE

9.7%

Moderate

Moderate capital efficiency

ROCE

16.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.50x

Low

Conservative leverage

Revenue Growth (YoY)

251.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1393.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹6 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹40

ROA

2.4%

Weak

Assets generate little profit

Operating Margin

2.5%

Weak

Thin margins leave little room for error

Net Margin

2.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.50

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

45.5 / 47.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

21.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹120 Cr	₹221 Cr	₹87 Cr	₹112 Cr	-2.1%
EBITDA	₹4 Cr	₹3 Cr	₹4 Cr	₹8 Cr	+26.2%
EBITDA Margin	3.5%	1.6%	4.1%	7.5%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹1 Cr	₹3 Cr	+49.8%
EPS	₹1.2	₹2.03	₹1.14	—	—
ROE	3.3%	5.3%	2.9%	9.2%	—
ROCE	9.9%	11.5%	9.2%	16.7%	—
Total Debt	₹19 Cr	₹16 Cr	₹21 Cr	₹17 Cr	-4.5%
Free Cash Flow	₹5 Cr	₹4 Cr	-₹7 Cr	₹8 Cr	+19.3%

🔴 Revenue has shrunk at 2.1% a year over 3 years.

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

🟢 EBITDA Margin has risen from 3.5% to 7.5% over 3 years (+4.0 pts).

🟢 PAT (Net Profit) has grown at 49.8% a year over 3 years.

🟢 ROE has risen from 3.3% to 9.2% over 3 years (+5.9 pts).

🟢 ROCE has risen from 9.9% to 16.7% over 3 years (+6.8 pts).

🟢 Total Debt has shrunk at 4.5% a year over 3 years.

🟢 Free Cash Flow has grown at 19.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹94 Cr

Total Liabilities

₹61 Cr

Total Debt

₹17 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.8%

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

BSE grants in-principle approval for Chandra Bhagat Pharma warrant issue

scanx.trade, 13 Oct

HESTER BIOSCIENCES Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 17 Oct

ADVANCED ENZYME TECHNOLOGIES Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

Crestwell Healthcare (KASE:SGPL) - Stock Analysis

Simply Wall Street, 11 Oct

MERCURY LAB. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 08 Oct

There Are Reasons To Feel Uneasy About Remus Pharmaceuticals' (NSE:REMUS) Returns On Capital

Simply Wall Street, 11 Feb

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate11.5/20

🟢Financial HealthStrong15/20

🟡GrowthModest10.5/20

🟡ProfitabilityModerate7.1/15

🟢ValuationAttractive13.2/15

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

This thesis breaks if

✓EBITDA margin holds above 5%7.5%
✓Interest cover stays above 3x3.2x
✓Free cash flow remains positive₹8 Cr
✓Debt / EBITDA stays below 2x2.0x
✓ROCE stays above 14%16.7%