FDC Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹353.00+₹1.60 (+0.46%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with modest growth. 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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

FDC Limited, together with its subsidiaries, manufactures and trades in pharmaceutical products in India, the United States, and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees7,076

Annual revenue₹2,163 Cr

How does it make money?

Turns over ₹2,163 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 7,076 employees supports ₹30.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹30.6 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 14.8% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +22% while net margin moved +19% 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+22%

Margin effect+19%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 6.8% — barely ahead of inflation
• Profit CAGR of 13.2%

Quality vs. Valuation

Company Quality

65/ 100

Good

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 good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

19.6x

3Y Median

26.9x

40 monthly readings · mean 27.9x · range 19.5x–43.6x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 27% below its 3y median of 26.9x. 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 41% below the peer median of 33.3x.

vs. its own history

Cheap

26.9x median over 40 months · -27%

vs. sector peers

Cheap

33.3x median of 4 peers · -41%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.8x

PEG

1.49

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 16.0% to 19.2% over 3 years.
Debt is being paid down
Total debt is down 45% 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

1 item require attention · 1 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 16.0% to 19.2%. 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 45% 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 27% 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 41% 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?

Growth barely outpaces inflation
Revenue compounding at 6.8% 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.
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

1EBITDA margin holds above 17%✓ 19.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.8% CAGR
Latest reported year was 3.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹14 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 14.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

3 good · 8 neutral · 0 weak

Market Cap

₹5,747 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.6x

Fair

Fairly valued against the generic band

P/B Ratio

2.31x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹17.98

Profitable

Profitable on a per-share basis

ROE

11.3%

Moderate

Moderate capital efficiency

ROCE

14.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.62x

Moderate

Moderate leverage

Revenue Growth (YoY)

3.0%

Modest

Modest growth

Profit Growth (YoY)

9.3%

Modest

Slow profit growth

Dividend Yield

2.83%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹14 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

15.2x

Improving

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

Operating Margin

19.2%

Good

Healthy core-business profitability

Net Margin

13.4%

Good

Strong bottom-line conversion

Current Ratio

3.11

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

343.0 / 346.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

59.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,778 Cr	₹1,943 Cr	₹2,103 Cr	₹2,163 Cr	+6.8%
EBITDA	₹284 Cr	₹375 Cr	₹380 Cr	₹415 Cr	+13.5%
EBITDA Margin	16.0%	19.3%	18.1%	19.2%	—
PAT (Net Profit)	₹194 Cr	₹305 Cr	₹267 Cr	₹281 Cr	+13.2%
EPS	₹11.67	₹18.58	₹16.39	₹17.29	+14.0%
ROE	9.8%	14.6%	11.7%	11.3%	—
ROCE	12.9%	18.5%	15.3%	14.8%	—
Total Debt	₹28 Cr	₹21 Cr	₹21 Cr	₹15 Cr	-18.3%
Free Cash Flow	₹42 Cr	₹127 Cr	₹221 Cr	₹14 Cr	-30.7%

🟢 Revenue has grown at 6.8% a year over 3 years.

🟢 EBITDA has grown at 13.5% a year over 3 years.

🟢 EBITDA Margin has risen from 16.0% to 19.2% over 3 years (+3.2 pts).

🟢 PAT (Net Profit) has grown at 13.2% a year over 3 years.

🟢 EPS has grown at 14.0% a year over 3 years.

🟢 ROE has risen from 9.8% to 11.3% over 3 years (+1.5 pts).

🟢 ROCE has risen from 12.9% to 14.8% over 3 years (+2.0 pts).

🟢 Total Debt has shrunk at 18.3% a year over 3 years.

🔴 Free Cash Flow has shrunk at 30.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,919 Cr

Total Liabilities

₹434 Cr

Cash & Equivalents

₹49 Cr

Operating Cash Flow

₹200 Cr

Capex

-₹187 Cr

Shareholding (proxy)

Institutional Holding

7.4%

Insider Holding

69.9%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

11 Feb 2026

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

4 mixed2 general

FDC Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 13 AugAnalyst view

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

FDC Ltd concludes 86th AGM with director re-appointment and financial adoption

scanx.trade, 24 Sept

Healthcare sector: Bullish on HCG, Thyrocare and FDC shares, says InCred AMC CIO

Business Today, 27 JulAnalyst view

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

Maharashtra FDA Seizes FDC’s Enerzal Stock; Brand Drives 18% Of Company Domestic Revenue

Sahi, 05 Jun

Why Is FDC Share Price Falling Key Reasons 2026

Univest, 01 JulPrice 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.

FDC Consolidated Holdings (ASX:FDC) Shares Up 15% in a Year: Is This Construction Stock Worth Watching?

Kalkine, 11 SeptPrice 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.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Profitability · Valuation

MiddlingBusiness Quality · Growth · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑