Colinz Laboratories Limited

Healthcare — Drug Manufacturers - Specialty & Generic · BSE

₹70.00₹0.00 (0.00%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Colinz Laboratories Limited manufactures and trades in pharmaceutical formulations in India.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees62

Annual revenue₹6 Cr

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 62 employees supports ₹9.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹9.9 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?Little sign of one

Returns on capital of 7.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

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 -14% while net margin moved +33% 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-14%

Margin effect+33%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 5.0% a year
✗ Profit CAGR of only 4.4%
✗ Latest-year revenue growth of -20.8% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

74/ 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

6.3x

3Y Median

24.0x

40 monthly readings · mean 27.7x · range 20.2x–42.3x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 74% below its 3y median of 24.0x. 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 81% below the peer median of 33.3x.

vs. its own history

Cheap

24.0x median over 40 months · -74%

vs. sector peers

Cheap

33.3x median of 4 peers · -81%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

19.4x

PEG

1.42

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 11.2% to 14.5% over 3 years.
Cash generation is improving
Free cash flow is up 531% over 3 years.
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

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 3.88x — earnings must service borrowings before shareholders see anything.
🟡Debt is increasingFinancial
Total debt is up 43% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 11.2% to 14.5%. 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 74% 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 81% 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 3.88x. Interest is payable whether or not the business has a good year.
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 13%✓ 14.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 7.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 24.0x✓ 6.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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 · 3 neutral · 4 weak

Market Cap

₹18 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.3x

Cheap

Cheap against the generic band

P/B Ratio

1.75x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.1

Profitable

Profitable on a per-share basis

ROE

5.1%

Weak

Weak capital efficiency

ROCE

7.2%

Weak

Low return on total capital employed

Debt/Equity

3.88x

High

High leverage

Revenue Growth (YoY)

-20.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

1927.7%

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

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.9%

Weak

Thin margins leave little room for error

Net Margin

48.1%

Good

Strong bottom-line conversion

Current Ratio

3.93

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.09

Defensive

Steadier than the market

52W Range Position

65%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

72.7 / 74.6

Bearish 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	₹7 Cr	₹7 Cr	₹7 Cr	₹6 Cr	-5.0%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+3.6%
EBITDA Margin	11.2%	11.6%	12.1%	14.5%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+4.4%
EPS	₹1.82	₹1.93	₹1.97	₹2.04	+3.9%
ROE	5.5%	5.4%	5.2%	5.1%	—
ROCE	7.8%	7.5%	6.9%	7.2%	—
Total Debt	₹0 Cr	₹1 Cr	₹1 Cr	₹0 Cr	+12.6%
Free Cash Flow	₹0 Cr	₹1 Cr	-₹2 Cr	₹3 Cr	+84.8%

🔴 Revenue has shrunk at 5.0% a year over 3 years.

🟢 EBITDA has grown at 3.6% a year over 3 years.

🟢 EBITDA Margin has risen from 11.2% to 14.5% over 3 years (+3.3 pts).

🟢 PAT (Net Profit) has grown at 4.4% a year over 3 years.

🟢 EPS has grown at 3.9% a year over 3 years.

🟡 ROE has held roughly flat at 5.1% over 3 years.

🟡 ROCE has held roughly flat at 7.2% over 3 years.

🔴 Total Debt has grown at 12.6% a year over 3 years.

🟢 Free Cash Flow has grown at 84.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹13 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹3 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.2%

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

6 general

Top 14 Pharma Stocks To Buy In India October 2026

Samco, 17 Oct

Colinz Labs shareholders approve all resolutions at 40th AGM

scanx.trade, 23 Sept

Dugar family triggers ₹3.54 crore Colinz Laboratories open offer at ₹54 per share

Dealroom, 01 Aug

Colinz Laboratories open offer opens Aug 7 at ₹54 per share

scanx.trade, 07 Aug

COLINZ LABORATORIES LTD. Share Price

Upstox, 23 Mar

COLINZ Stock Price and Chart — BSE:COLINZ

TradingView, 13 Nov

Watch Items

Revenue growth is negative (-20.8%) 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

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability · Risk

WeakGrowth

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

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑