Ind-Swift Laboratories Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹358.75+₹0.80 (+0.22%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

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 Ind-Swift Laboratories Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ind-Swift Laboratories Limited, together with its subsidiaries, develops, manufactures, and sells active pharmaceutical ingredients (APIs), intermediates, and formulations in India and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees1,388

Annual revenue₹626 Cr

How does it make money?

Turns over ₹626 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 1,388 employees supports ₹45.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹45.1 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 3.6% 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.

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 -48% while net margin moved +75% 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-48%

Margin effect+75%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 19.7% a year
✗ Profit has declined at 3.2% a year

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

26/ 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.

Historical Valuation

Current P/E

53.6x

2Y Median

2.7x

28 monthly readings · mean 12.5x · range 0.8x–77.3x

Sector Median

33.3x

median of 4 sector peers

⚠️Current valuation is approximately 1866% above its 2y median of 2.7x. 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 61% above the peer median of 33.3x.

vs. its own history

Expensive

2.7x median over 28 months · +1866%

vs. sector peers

Expensive

33.3x median of 4 peers · +61%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

29.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 98% 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 7.0% to 3.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 11.9% to 3.6% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.6 points, from 21.4% to 14.8%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 47% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 98% 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?

Margins are being competed away
EBITDA margin has fallen from 21.4% to 14.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 1866% 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.
Returns on shareholder capital are falling
ROE has dropped from 7.0% to 3.1%. 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 13%✓ 14.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹156 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 3.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 2.7x✗ 53.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

3 good · 4 neutral · 4 weak

Market Cap

₹3,170 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

53.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.16x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.69

Profitable

Profitable on a per-share basis

ROE

3.1%

Weak

Weak capital efficiency

ROCE

3.6%

Weak

Low return on total capital employed

Debt/Equity

1.48x

Moderate

Moderate leverage

Revenue Growth (YoY)

25.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

142.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹156 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

13.5%

Average

Average margins

Net Margin

8.5%

Average

Average bottom-line conversion

Current Ratio

3.80

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.79

Defensive

Steadier than the market

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

384.4 / 356.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

32.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,207 Cr	₹1,709 Cr	₹562 Cr	₹626 Cr	-19.7%
EBITDA	₹258 Cr	₹345 Cr	₹59 Cr	₹93 Cr	-28.9%
EBITDA Margin	21.4%	20.2%	10.4%	14.8%	—
PAT (Net Profit)	₹48 Cr	₹539 Cr	₹250 Cr	₹43 Cr	-3.2%
EPS	₹-4.28	₹91.18	₹35.21	₹5.03	—
ROE	7.0%	66.3%	21.4%	3.1%	—
ROCE	11.9%	67.7%	21.3%	3.6%	—
Total Debt	₹862 Cr	₹217 Cr	₹33 Cr	₹18 Cr	-72.5%
Free Cash Flow	₹182 Cr	-₹260 Cr	-₹93 Cr	-₹156 Cr	—

🔴 Revenue has shrunk at 19.7% a year over 3 years.

🔴 EBITDA has shrunk at 28.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 21.4% to 14.8% over 3 years (-6.6 pts).

🔴 PAT (Net Profit) has shrunk at 3.2% a year over 3 years.

🟢 EPS has turned positive, from ₹-4.28 to ₹5.03.

🔴 ROE has fallen from 7.0% to 3.1% over 3 years (-3.9 pts).

🔴 ROCE has fallen from 11.9% to 3.6% over 3 years (-8.3 pts).

🟢 Total Debt has shrunk at 72.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹182 Cr to -₹156 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,673 Cr

Total Liabilities

₹289 Cr

Cash & Equivalents

₹430 Cr

Operating Cash Flow

-₹68 Cr

Capex

-₹88 Cr

Shareholding (proxy)

Institutional Holding

6.3%

Insider Holding

66.0%

Corporate Actions

Ex-Dividend Date

20 Sept 2011

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

1 positive2 mixed3 general

Ind-Swift Laboratories secures 99.99% shareholder approval for ₹137.20 crore warrant issue

scanx.trade, 29 Jul

Ind-Swift Laboratories Ltd. (INDSWFTLAB) Share Price Rises 8.68% as Small Cap Stock Gains Today

Univest, 18 AugPrice 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.

Ind-Swift Laboratories surges after Q1 PAT zooms 183% YoY

Business Standard, 11 AugResults

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

Ind-Swift Laboratories Limited's (NSE:INDSWFTLAB) Shares Bounce 29% But Its Business Still Trails The Market

Simply Wall Street, 31 Jan

Ind-Swift Lab Q4 Revenue Rises 21% to ₹170 Cr as Core PBT Grows 17%

Sahi, 29 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Ind-Swift Laboratories Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Watch Items

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

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health

WeakGrowth · Profitability · Valuation · Risk

Points for each in the Score ↑

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. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8%; Valuation vs its own median of 2.7x · see Key things to watch ↑