CORONA Remedies Limited

Healthcare — Drug Manufacturers - General · NSE

₹1,981.10−₹63.70 (−3.12%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

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

What does this company do?

CORONA Remedies Limited, a pharmaceutical formulation company, develops, manufactures, and markets pharmaceutical products.

IndustryDrug Manufacturers - General

SectorHealthcare

Employees5,153

Annual revenue₹1,401 Cr

How does it make money?

Turns over ₹1,401 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 5,153 employees supports ₹27.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹27.2 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 29.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 24.8% against a peer median of 14.5% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.5%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 17.2% and earnings to grow about 34.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.2%

Est. earnings growth+34.8%

Analysts3

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 +59% while net margin moved +37% 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+59%

Margin effect+37%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

81/ 100

Excellent

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

Valuation

35/ 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

60.9x

1.0Y Median

67.7x

12 monthly readings · mean 68.3x · range 56.7x–85.9x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 10% below its 1.0y median of 67.7x. 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 83% above the peer median of 33.3x.

vs. its own history

Fair

67.7x median over 12 months · -10%

vs. sector peers

Expensive

33.3x median of 4 peers · +83%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

40.6x

PEG

2.05

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 15.1% to 21.6% over 3 years.
Cash generation is improving
Free cash flow is up 597% over 3 years.
Return on equity is rising
ROE has improved from 20.8% to 24.8%.
Return on capital is rising
ROCE has improved from 24.8% to 29.0%.
High return on capital employed
ROCE of 29.0% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.
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

🔴Debt has risen sharplyFinancial
Total debt is up 490% over 3 years, from ₹28 Cr to ₹165 Cr.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.96 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 29.0% 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.
Margin expansion has further to run
EBITDA margin has risen from 15.1% to 21.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹55 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?

A premium to the sector to defend
It trades 83% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Small 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 12% a year✓ 16.6% CAGR
Latest reported year was 21.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 21.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹55 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 26%✓ 29.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

7 good · 2 neutral · 2 weak

Market Cap

₹12,116 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

60.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

16.22x

Rich

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

EPS (TTM)

₹32.55

Profitable

Profitable on a per-share basis

ROE

24.8%

Strong

Strong capital efficiency

ROCE

29.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

21.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

30.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.50%

Modest

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

Free Cash Flow

₹55 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

37.8x

Improving

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

Operating Margin

18.9%

Good

Healthy core-business profitability

Net Margin

13.5%

Good

Strong bottom-line conversion

Current Ratio

0.96

Adequate

Adequate, but no real cushion

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2076.2 / 2101.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

34.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹884 Cr	₹1,014 Cr	₹1,196 Cr	₹1,401 Cr	+16.6%
EBITDA	₹133 Cr	₹159 Cr	₹244 Cr	₹303 Cr	+31.4%
EBITDA Margin	15.1%	15.7%	20.4%	21.6%	—
PAT (Net Profit)	₹85 Cr	₹91 Cr	₹149 Cr	₹185 Cr	+29.7%
EPS	₹13.89	₹14.8	₹24.43	₹30.27	+29.7%
ROE	20.8%	18.8%	24.6%	24.8%	—
ROCE	24.8%	21.4%	29.9%	29.0%	—
Total Debt	₹28 Cr	₹159 Cr	₹86 Cr	₹165 Cr	+80.7%
Free Cash Flow	₹8 Cr	-₹130 Cr	₹99 Cr	₹55 Cr	+91.0%

🟢 Revenue has grown at 16.6% a year over 3 years.

🟢 EBITDA has grown at 31.4% a year over 3 years.

🟢 EBITDA Margin has risen from 15.1% to 21.6% over 3 years (+6.5 pts).

🟢 PAT (Net Profit) has grown at 29.7% a year over 3 years.

🟢 EPS has grown at 29.7% a year over 3 years.

🟢 ROE has risen from 20.8% to 24.8% over 3 years (+4.0 pts).

🟢 ROCE has risen from 24.8% to 29.0% over 3 years (+4.3 pts).

🔴 Total Debt has grown at 80.7% a year over 3 years.

🟢 Free Cash Flow has grown at 91.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,205 Cr

Total Liabilities

₹458 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹229 Cr

Capex

-₹174 Cr

Shareholding (proxy)

Institutional Holding

19.8%

Insider Holding

77.6%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

19 Jun 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹2,304.67

+16.3% vs CMP

Target Range

₹2,175 – ₹2,479

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

Corona Remedies Dividend 2026: ₹10.00, Record Date 19 Jun

INDmoney, 16 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

BIOCON - Comparison Results

Equitymaster, 16 OctResults

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

Corona Remedies CFO shares growth guidance

CNBC TV18, 03 Jul

Corona Remedies Files DRHP for ₹800 Crore IPO

Groww, 21 May

Stock Stories: How Corona Remedies is Prescribing a High-Tech Future for Smart Healthcare

MarketSmith India, 21 May

CORONA REMEDIES LIMITED Share Price

Upstox, 05 May

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

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 ↑