Indegene Limited

Healthcare — Health Information Services · NSE

₹598.45+₹7.25 (+1.23%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is 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 Indegene Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Indegene Limited operates as a digital-first life sciences commercialization company in India, the United States, Europe, North America, and internationally. It operates through Enterprise Medical Solutions, Enterprise Commercial Solutions, and Other segments.

IndustryHealth Information Services

SectorHealthcare

Employees4,687

Annual revenue₹3,511 Cr

How does it make money?

Turns over ₹3,511 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 4,687 employees supports ₹74.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹74.9 lakh

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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 15.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.5%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 12.9% and earnings to grow about 23.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.9%

Est. earnings growth+23.8%

Analysts7

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +52% while net margin moved -1% 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+52%

Margin effect-1%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 36.1x already prices in growth
• P/E is close to its own historical median of 36.5x

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

48/ 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

36.1x

3Y Median

36.5x

31 monthly readings · mean 37.6x · range 25.5x–54.9x

Sector Median

33.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 36.5x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 33.3x.

vs. its own history

Fair

36.5x median over 31 months · -1%

vs. sector peers

Fair

33.3x median of 4 peers · +8%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

21.7x

PEG

2.46

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 71% over 3 years.
Cash generation is improving
Free cash flow is up 444% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 25.0% to 12.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 23.0% to 15.3% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 5.04x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 71% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

Leverage amplifies any setback
Debt/Equity of 5.04x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 25.0% to 12.8%. 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.
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

1Revenue growth stays above 11% a year✓ 15.0% CAGR
Latest reported year was 39.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 18.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹606 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹14,412 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

36.1x

Fair

Fairly valued against the generic band

P/B Ratio

4.59x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹16.6

Profitable

Profitable on a per-share basis

ROE

12.8%

Moderate

Moderate capital efficiency

ROCE

15.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.04x

High

High leverage

Revenue Growth (YoY)

39.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-0.2%

Falling

Profits are shrinking

Dividend Yield

0.38%

Modest

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

Free Cash Flow

₹606 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

22.0x

Improving

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

Operating Margin

12.2%

Average

Average margins

Net Margin

10.5%

Good

Strong bottom-line conversion

Current Ratio

2.41

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.75

Defensive

Steadier than the market

52W Range Position

87%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

595.7 / 584.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,306 Cr	₹2,590 Cr	₹2,839 Cr	₹3,511 Cr	+15.0%
EBITDA	₹454 Cr	₹465 Cr	₹594 Cr	₹658 Cr	+13.1%
EBITDA Margin	19.7%	18.0%	20.9%	18.7%	—
PAT (Net Profit)	₹266 Cr	₹337 Cr	₹407 Cr	₹401 Cr	+14.7%
EPS	₹11.12	₹14.09	₹17.02	₹16.62	+14.3%
ROE	25.0%	23.6%	15.5%	12.8%	—
ROCE	23.0%	26.1%	20.2%	15.3%	—
Total Debt	₹503 Cr	₹490 Cr	₹102 Cr	₹144 Cr	-34.0%
Free Cash Flow	₹111 Cr	₹497 Cr	₹412 Cr	₹606 Cr	+75.9%

🟢 Revenue has grown at 15.0% a year over 3 years.

🟢 EBITDA has grown at 13.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 18.7% over 3 years.

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

🟢 EPS has grown at 14.3% a year over 3 years.

🔴 ROE has fallen from 25.0% to 12.8% over 3 years (-12.2 pts).

🔴 ROCE has fallen from 23.0% to 15.3% over 3 years (-7.7 pts).

🟢 Total Debt has shrunk at 34.0% a year over 3 years.

🟢 Free Cash Flow has grown at 75.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,620 Cr

Total Liabilities

₹1,482 Cr

Cash & Equivalents

₹301 Cr

Operating Cash Flow

₹651 Cr

Capex

-₹44 Cr

Shareholding (proxy)

Institutional Holding

27.8%

Insider Holding

55.5%

Corporate Actions

Dividend Rate

₹2.25

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

7 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹659.75

+10.2% vs CMP

Target Range

₹500 – ₹735

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

4 mixed2 general

Indegene shares hit over one-year high as Motilal Oswal hikes target price

Moneycontrol.com, 25 SeptAnalyst view

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

Indegene (NSEI:INDGN) Stock Forecast & Analyst Predictions

Simply Wall Street, 08 OctAnalyst view

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

Indegene share price jumps 5% to hit a 52-week high after Axis initiates coverage with a buy - Check target price

TradingView, 25 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.

Indegene share price jumps 5% to hit a 52-week high after Axis initiates coverage with a buy - Check target price

Livemint, 25 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.

Indegene (INDGN) Share/Stock Price Live, NSE

TechGraph, 07 Oct

Indegene Ltd. Share Price: Fresh 52-Week High and Valuation

Univest, 31 Aug

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑