Evoq Remedies Limited

Healthcare — Medical Distribution · BSE

₹1.88+₹0.08 (+4.44%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Evoq Remedies Limited engages in the pharmaceutical business in India. The company trades in and acts as a commission agent for pharmaceutical products.

IndustryMedical Distribution

SectorHealthcare

Annual revenue₹26 Cr

How does it make money?

Turns over ₹26 Cr a year. Of every ₹100 of sales, about ₹-1 reaches shareholders as profit, with ₹-1 left at the operating level before interest, tax and depreciation.

EBITDA margin-0.8%

Net margin-0.9%

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?Little sign of one

Returns on capital of -0.6% 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.

ROCE-0.6%

ROE-0.5%

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 +25% while net margin moved -112% 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+25%

Margin effect-112%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 7.1 points over the period

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

36/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.09x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -18.3% to -0.8% over 3 years.
Debt is being paid down
Total debt is down 99% over 3 years.
Return on capital is rising
ROCE has improved from -15.1% to -0.6%.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 6.5% to -0.5% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 1 high · 2 watch

🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 83% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -18.3% to -0.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 99% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 7.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 6.5% to -0.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 -3%✓ -0.8%
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.
3Revenue growth stays above 6% a year✓ 7.7% CAGR
Latest reported year was -98.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4ROCE stays above 8%✗ -0.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

2 good · 2 neutral · 7 weak

Market Cap

₹5 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.09x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.1

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.5%

Weak

Weak capital efficiency

ROCE

-0.6%

Weak

Low return on total capital employed

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

-98.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-372.0%

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 burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1.88

ROA

-0.3%

Weak

Assets generate little profit

Operating Margin

-174.8%

Weak

Thin margins leave little room for error

Net Margin

-0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

6.77

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.42

High swing

Swings more than the market in both directions

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1.6 / 1.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

86.2

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹4 Cr	₹12 Cr	₹26 Cr	+7.7%
EBITDA	-₹4 Cr	-₹2 Cr	₹0 Cr	-₹0 Cr	—
EBITDA Margin	-18.3%	-37.5%	1.5%	-0.8%	—
PAT (Net Profit)	₹2 Cr	₹0 Cr	₹0 Cr	-₹0 Cr	—
EPS	₹1.19	₹0.33	₹0.06	—	—
ROE	6.5%	1.8%	0.2%	-0.5%	—
ROCE	-15.1%	-6.3%	0.3%	-0.6%	—
Total Debt	₹10 Cr	₹4 Cr	—	₹0 Cr	-80.3%
Free Cash Flow	-₹4 Cr	₹5 Cr	-₹15 Cr	-₹0 Cr	—

🟢 Revenue has grown at 7.7% a year over 3 years.

🟢 EBITDA Margin has risen from -18.3% to -0.8% over 3 years (+17.5 pts).

🔴 PAT (Net Profit) has turned negative, from ₹2 Cr to -₹0 Cr.

🔴 ROE has fallen from 6.5% to -0.5% over 3 years (-7.1 pts).

🟢 ROCE has risen from -15.1% to -0.6% over 3 years (+14.5 pts).

🟢 Total Debt has shrunk at 80.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹52 Cr

Total Liabilities

₹8 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

41.3%

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

2 mixed4 general

EVOQ Remedies Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 01 Sept

Evoq Remedies gets ROC nod to extend FY26 AGM deadline to Oct 30

scanx.trade, 01 Oct

EVOQ Remedies Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

EVOQ Remedies Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Q4 results: TCS, Anand Rathi Wealth, Evoq Remedies to post earnings on April 10

Upstox, 10 AprResults

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

Q4 results 2026: Bharti Airtel to HAL among companies to declare Q4 results next week; full list here

Livemint, 10 MayResults

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

Watch Items

Revenue growth is negative (-98.7%) 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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong14.3/20

🔴GrowthWeak7.6/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.1/15

🔴RiskHigh2.7/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -3%-0.8%
✗Free cash flow remains positive-₹0 Cr
✓Revenue growth stays above 6% a year7.7% CAGR
✗ROCE stays above 8%-0.6%