The 60-second version of Hindustan Bio Sciences Limited — what it does, how it earns, and who it competes with, before any of the numbers below.
What does this company do?
Hindustan Bio Sciences Limited manufactures and sells pharmaceutical products in India. The company offers tablets, capsules, drops, externels, and syrups. It is also involved in marketing a nephrology product, recombinant human Erythropotien; and trading of drugs and medicines.
IndustryDrug Manufacturers - Specialty & Generic
SectorHealthcare
Employees5
Annual revenue₹1 Cr
How does it make money?
Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹-11 reaches shareholders as profit, with ₹-2 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹14.1 lakh of revenue a year, the signature of a people-led business.
Revenue / employee₹14.1 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.
What is its competitive advantage?Little sign of one
Returns on capital of -2.5% 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 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 -19% while net margin moved +141% 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-19%
Margin effect+141%
DalalBaazaar Score
26/ 100
Weak
Weighted across six categories. Every point is explained below.
✗ Revenue has contracted at 6.8% a year
✗ Profit fell 178.4% in the latest year
Quality vs. Valuation
Company Quality
26/ 100
Weak
How good the business is, ignoring the share price entirely.
vs
Valuation
21/ 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
EV/EBITDA
—
PEG
—
What's Good / What's Bad
🟢 What's Going Well1
Margins are improving
EBITDA margin is up from -6.0% to -2.0% over 3 years.
🔴 What Needs Attention1
Return on equity is falling
ROE has dropped from -5.4% to -9.6% — each rupee of shareholder capital earns less than it did.
Red Flags
3 items require attention · 2 high · 1 watch
🔴High leverageFinancial
Debt/Equity of 2.84x — earnings must service borrowings before shareholders see anything.
🔴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.
Investment Thesis
🟢 Bull CaseWhat could make this work?
Margin expansion has further to run
EBITDA margin has risen from -6.0% to -2.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
🔴 Bear CaseWhat could go wrong?
Leverage amplifies any setback
Debt/Equity of 2.84x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from -5.4% to -9.6%. 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.
🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today
1EBITDA margin holds above -4%✓ -2.0%
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%✗ -2.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
Investment Checklist
3 / 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
0 good · 2 neutral · 9 weak
Market Cap
₹7 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
9.11x
Rich
Steep premium to book — needs high, durable returns to justify
EPS (TTM)
₹-0.2
Loss-making
Negative earnings per share — the business is losing money
ROE
-9.6%
Weak
Weak capital efficiency
ROCE
-2.5%
Weak
Low return on total capital employed
Debt/Equity
2.84x
High
High leverage
Revenue Growth (YoY)
-10.4%
Shrinking
Sales are contracting
Profit Growth (YoY)
-178.4%
Falling
Profits are shrinking
Dividend Yield
None
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
Operating Margin
-51.1%
Weak
Thin margins leave little room for error
Net Margin
-51.2%
Weak
Very little revenue reaches the bottom line
Current Ratio
38.80
Comfortable
Healthy short-term liquidity
Beta (vs Nifty)
-0.64
Defensive
Steadier than the market
52W Range Position
43%
Mid-range
Mid-range
Technical Snapshot
SMA 20 / SMA 50
7.2 / 7.3
Bearish alignment (short < long)
Price vs SMA 200
Below
Long-term downtrend
RSI (14)
47.5
Neutral momentum
Financial Trend (4-Year)
Metric
FY23
FY24
FY25
FY26
3Y CAGR
Revenue
₹1 Cr
₹1 Cr
₹1 Cr
₹1 Cr
-6.8%
EBITDA
-₹0 Cr
₹0 Cr
₹0 Cr
-₹0 Cr
—
EBITDA Margin
-6.0%
5.7%
12.3%
-2.0%
—
PAT (Net Profit)
-₹0 Cr
₹0 Cr
₹0 Cr
-₹0 Cr
—
EPS
₹-0.04
₹0.06
₹0.1
₹-0.08
—
ROE
-5.4%
7.2%
11.1%
-9.6%
—
ROCE
-3.0%
1.6%
2.9%
-2.5%
—
Total Debt
₹2 Cr
₹3 Cr
₹3 Cr
₹2 Cr
-1.5%
Free Cash Flow
-₹0 Cr
-₹1 Cr
₹0 Cr
-₹0 Cr
—
🔴 Revenue has shrunk at 6.8% a year over 3 years.
🟢 EBITDA Margin has risen from -6.0% to -2.0% over 3 years (+3.9 pts).
🔴 ROE has fallen from -5.4% to -9.6% over 3 years (-4.1 pts).
🟡 ROCE has held roughly flat at -2.5% over 3 years.
🟡 Total Debt has been broadly flat over 3 years (-1.5% a year).
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. 2 high-severity red flags sit above this conclusion and should be read first.
2 of 3 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑
