Emcure Pharmaceuticals Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹1,822.00−₹14.00 (−0.76%)

DalalBaazaar Score

78 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Emcure Pharmaceuticals Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Emcure Pharmaceuticals Limited provide quality and affordable healthcare solutions worldwide.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees6,914

Annual revenue₹9,116 Cr

How does it make money?

Turns over ₹9,116 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 6,914 employees supports ₹1.32 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin20.8%

Net margin10.1%

Revenue / employee₹1.32 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 24.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.7% 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.

ROCE24.7%

ROE18.7%

Peer median ROE14.5%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 12.7% and earnings to grow about 23.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.7%

Est. earnings growth+23.0%

Analysts7

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 +54% while net margin moved +13% 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+54%

Margin effect+13%

DalalBaazaar Score

78/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 34.2x already prices in growth
✓ P/E is 22% below its own historical median of 43.8x — cheap by its own standards
✗ P/B of 6.98x is a steep premium to book

Quality vs. Valuation

Company Quality

83/ 100

Excellent

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

Valuation

57/ 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

34.2x

2Y Median

43.8x

29 monthly readings · mean 43.6x · range 35.1x–53.8x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 22% below its 2y median of 43.8x. 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 is priced broadly in line with the peer median of 33.3x.

vs. its own history

Cheap

43.8x median over 29 months · -22%

vs. sector peers

Fair

33.3x median of 4 peers · +2%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

34.2x

P/B

6.98x

EV/EBITDA

18.9x

PEG

1.69

Dividend Yield

0.20%

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 35% over 3 years.
High return on capital employed
ROCE of 24.7% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 34.2x the stock trades 22% below its own median of 43.8x.
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

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.7% 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.
Deleveraging frees up earnings
Debt is down 35% 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 22% 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.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹396 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?

No clear risk case emerges from the available numbers — which is not the same as there being none.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 15.4% CAGR
Latest reported year was 22.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 19%✓ 20.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹396 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 24.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

12 / 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 · 3 neutral · 1 weak

Market Cap

₹34,565 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

34.2x

Fair

Fairly valued against the generic band

P/B Ratio

6.98x

Rich

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

EPS (TTM)

₹53.35

Profitable

Profitable on a per-share basis

ROE

18.7%

Strong

Strong capital efficiency

ROCE

24.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

22.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

41.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.20%

Modest

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

Free Cash Flow

₹396 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,822

P/E (Forward)

23.4x

Improving

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

Operating Margin

15.4%

Good

Healthy core-business profitability

Net Margin

10.4%

Good

Strong bottom-line conversion

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.08

Defensive

Steadier than the market

52W Range Position

65%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1918.4 / 1916.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

25.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,931 Cr	₹6,582 Cr	₹7,808 Cr	₹9,116 Cr	+15.4%
EBITDA	₹1,196 Cr	₹1,241 Cr	₹1,468 Cr	₹1,900 Cr	+16.7%
EBITDA Margin	20.2%	18.8%	18.8%	20.8%	—
PAT (Net Profit)	₹532 Cr	₹498 Cr	₹681 Cr	₹924 Cr	+20.2%
EPS	₹29.43	₹27.57	₹36.43	₹48.77	+18.3%
ROE	21.3%	16.9%	15.3%	18.7%	—
ROCE	24.9%	20.2%	20.0%	24.7%	—
Total Debt	₹2,334 Cr	₹2,335 Cr	₹1,023 Cr	₹1,521 Cr	-13.3%
Free Cash Flow	₹343 Cr	₹790 Cr	₹445 Cr	₹396 Cr	+4.8%

🟢 Revenue has grown at 15.4% a year over 3 years.

🟢 EBITDA has grown at 16.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 20.8% over 3 years.

🟢 PAT (Net Profit) has grown at 20.2% a year over 3 years.

🟢 EPS has grown at 18.3% a year over 3 years.

🔴 ROE has fallen from 21.3% to 18.7% over 3 years (-2.6 pts).

🟡 ROCE has held roughly flat at 24.7% over 3 years.

🟢 Total Debt has shrunk at 13.3% a year over 3 years.

🟢 Free Cash Flow has grown at 4.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9,612 Cr

Total Liabilities

₹4,636 Cr

Total Debt

₹1,521 Cr

Cash & Equivalents

₹103 Cr

Operating Cash Flow

₹944 Cr

Capex

-₹548 Cr

Shareholding (proxy)

Institutional Holding

10.0%

Insider Holding

77.8%

Corporate Actions

Dividend Rate

₹3.6

Ex-Dividend Date

04 Sept 2026

Analyst Consensus

Recommendations

7 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹2,229.38

+22.4% vs CMP

Target Range

₹1,900 – ₹2,362

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 mixed

EMCURE Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

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

Emcure Pharmaceuticals (NSEI:EMCURE) Stock Forecast & Analyst Predictions

Simply Wall Street, 04 OctAnalyst view

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

Emcure Pharmaceuticals Ltd. Share Price Falls 3.14% Today

Univest, 14 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Emcure Pharma up over 3% as board approves merger of two subsidiaries

Business Standard, 12 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Emcure Pharma shares gain 3% as Motilal Oswal initiates coverage with Buy; sees 23% upside

Moneycontrol.com, 20 JulPrice 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.

Emcure Pharmaceuticals approves merger of two subsidiaries into parent entity

scanx.trade, 12 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

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 QualityStrong15.4/20

🟢Financial HealthStrong16.6/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong11.9/15

🟡ValuationFair7.9/15

🟢RiskLow7.2/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 12% a year15.4% CAGR
✓EBITDA margin holds above 19%20.8%
✓Free cash flow remains positive₹396 Cr
✓Debt / EBITDA stays below 2x0.8x
✓ROCE stays above 22%24.7%