Haleos Labs Limited

Healthcare — Biotechnology · NSE

₹1,531.00−₹28.00 (−1.80%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Haleos Labs Limited engages in the manufacturing of active pharmaceutical ingredients (API) and intermediates in India.

IndustryBiotechnology

SectorHealthcare

Employees611

Annual revenue₹316 Cr

How does it make money?

Turns over ₹316 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 611 employees supports ₹51.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹51.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO 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 10.5% 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 ROE32.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +1% while net margin moved +50% 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+1%

Margin effect+50%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.1% is weak

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

40/ 100

Expensive

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

29.3x

3Y Median

22.3x

40 monthly readings · mean 26.1x · range 13.1x–48.4x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 31% above its 3y median of 22.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 77% above the peer median of 16.5x.

vs. its own history

Expensive

22.3x median over 40 months · +31%

vs. sector peers

Expensive

16.5x median of 4 peers · +77%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.0x

PEG

1.99

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 10.1% to 15.1% 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

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹21 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 33% against revenue up 1% — 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 10.1% to 15.1%. 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 33% against revenue up 1%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 31% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 0.3% 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
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 13%✓ 15.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹21 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 4% a year✗ 0.3% CAGR
Latest reported year was -11.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 8%✓ 10.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 · 6 neutral · 3 weak

Market Cap

₹463 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.17x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹52.27

Profitable

Profitable on a per-share basis

ROE

8.1%

Moderate

Moderate capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.48x

Low

Conservative leverage

Revenue Growth (YoY)

-11.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-36.4%

Falling

Profits are shrinking

Dividend Yield

0.10%

Modest

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

Free Cash Flow

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.7%

Average

Average margins

Net Margin

4.9%

Average

Average bottom-line conversion

Current Ratio

1.04

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

64%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1529.8 / 1494.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹313 Cr	₹300 Cr	₹337 Cr	₹316 Cr	+0.3%
EBITDA	₹31 Cr	₹35 Cr	₹50 Cr	₹48 Cr	+14.9%
EBITDA Margin	10.1%	11.6%	14.7%	15.1%	—
PAT (Net Profit)	₹11 Cr	₹9 Cr	₹20 Cr	₹17 Cr	+14.7%
EPS	₹37.92	₹30.08	₹66.51	₹57.26	+14.7%
ROE	6.8%	5.1%	10.2%	8.1%	—
ROCE	8.8%	8.0%	14.0%	10.5%	—
Total Debt	₹100 Cr	₹101 Cr	₹86 Cr	₹111 Cr	+3.2%
Free Cash Flow	-₹34 Cr	₹3 Cr	₹19 Cr	-₹21 Cr	—

🟡 Revenue has been broadly flat over 3 years (0.3% a year).

🟢 EBITDA has grown at 14.9% a year over 3 years.

🟢 EBITDA Margin has risen from 10.1% to 15.1% over 3 years (+5.0 pts).

🟢 PAT (Net Profit) has grown at 14.7% a year over 3 years.

🟢 EPS has grown at 14.7% a year over 3 years.

🟢 ROE has risen from 6.8% to 8.1% over 3 years (+1.3 pts).

🟢 ROCE has risen from 8.8% to 10.5% over 3 years (+1.7 pts).

🔴 Total Debt has grown at 3.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹454 Cr

Total Liabilities

₹225 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹37 Cr

Capex

-₹58 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.0%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 mixed5 general

HALEOS LABS Share Price: Is It a Good Buy After Q1 FY27 Results?

Univest, 11 SeptResults

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

SMS Lifesciences Share Price

Upstox, 05 May

HALEOSLABS Stock Price and Chart — NSE:HALEOSLABS

TradingView, 26 Nov

Haleos Labs (NSEI:HALEOSLABS) - Stock Analysis

Simply Wall Street, 26 Nov

Haleos Labs Limited (HALEOSLABS.NS) stock price, news, quote and history

Yahoo Finance Singapore, 03 Dec

Haleos Labs' Material Subsidiary Mahi Drugs Appoints Vincent P. Asaro as Nominee Director, Names New Cost Auditors

scanx.trade, 05 Aug

Watch Items

Revenue growth is negative (-11.6%) 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.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth

WeakProfitability · Valuation · Risk

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.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑