Emmessar Biotech & Nutrition Limited

Healthcare — Drug Manufacturers - Specialty & Generic · BSE

₹21.64−₹0.47 (−2.13%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:53 pm

Understanding the Business

Company site ↗

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

What does this company do?

Emmessar Biotech & Nutrition Limited, a healthcare company, provides healthcare and nutritional products in India and internationally. The company operates through Healthcare and Rent on Lease Land segments.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees18

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹118 reaches shareholders as profit, with ₹184 left at the operating level before interest, tax and depreciation. Each of its 18 employees supports ₹2.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹2.1 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 6.4% 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 -64% while net margin moved +138% 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-64%

Margin effect+138%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 28.6% a year
✗ Profit has declined at 4.7% a year
✗ Profit fell 23.5% in the latest year

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

55/ 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

27.4x

3Y Median

30.0x

40 monthly readings · mean 32.9x · range 20.0x–51.4x

Sector Median

33.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 30.0x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 18% below the peer median of 33.3x.

vs. its own history

Fair

30.0x median over 40 months · -9%

vs. sector peers

Fair

33.3x median of 4 peers · -18%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -66.7% to 183.8% over 3 years.
Return on capital is rising
ROCE has improved from -10.1% to 6.4%.
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

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 53% against revenue up -64% — 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 -66.7% to 183.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 53% against revenue up -64%. 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.

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

1EBITDA margin holds above 182%✓ 183.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 6.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 30.0x✓ 27.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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

2 good · 5 neutral · 4 weak

Market Cap

₹11 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.4x

Fair

Fairly valued against the generic band

P/B Ratio

1.72x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.79

Profitable

Profitable on a per-share basis

ROE

5.4%

Weak

Weak capital efficiency

ROCE

6.4%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-4.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-23.5%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

27.4%

Good

Healthy core-business profitability

Net Margin

16.7%

Good

Strong bottom-line conversion

Current Ratio

12.68

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

23.0 / 23.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-28.6%
EBITDA	-₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	—
EBITDA Margin	-66.7%	163.9%	168.3%	183.8%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-4.7%
EPS	₹0.99	₹1.48	₹0.63	₹0.87	-4.2%
ROE	7.6%	10.1%	4.1%	5.4%	—
ROCE	-10.1%	9.9%	11.0%	6.4%	—
Total Debt	₹0 Cr	₹0 Cr	—	—	—
Free Cash Flow	₹0 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-9.8%

🔴 Revenue has shrunk at 28.6% a year over 3 years.

🟢 EBITDA has turned positive, from -₹1 Cr to ₹1 Cr.

🟢 EBITDA Margin has risen from -66.7% to 183.8% over 3 years (+250.4 pts).

🔴 PAT (Net Profit) has shrunk at 4.7% a year over 3 years.

🔴 EPS has shrunk at 4.2% a year over 3 years.

🔴 ROE has fallen from 7.6% to 5.4% over 3 years (-2.2 pts).

🟢 ROCE has risen from -10.1% to 6.4% over 3 years (+16.5 pts).

🔴 Free Cash Flow has shrunk at 9.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹10 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

61.6%

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

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Q4 results 2025: Reliance Industries, HCL Tech, Axis Bank, HUL among firms to declare earnings next week; check list

Livemint, 20 AprResults

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

Essar To Speed Up CBM Plans; To raise Output To 5 mmscmd In 3-4 Years

NDTV Profit, 08 Feb

Watch Items

Revenue growth is negative (-4.5%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingProfitability · Valuation · 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 4 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑