Infinium Pharmachem Limited

Sector n/a · NSE

₹222.95−₹2.45 (−1.09%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. 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, 7:00 pm

Understanding the Business

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

How does it make money?

Turns over ₹190 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 13.8% 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.

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 +66% while net margin moved -23% 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+66%

Margin effect-23%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

35/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

15.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 2041% over 3 years.
Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 42.1% to 10.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 46.5% to 13.8% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 watch

🟡Margins are compressingFinancial
EBITDA margin is down 2.8 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 104% against revenue up 66% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 98% against revenue up 66% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹24 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 15.2% to 12.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 104% against revenue up 66%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 42.1% to 10.0%. 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
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

1Revenue growth stays above 14% a year✓ 18.4% CAGR
Latest reported year was 21.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹24 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 13.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 7 neutral · 0 weak

Market Cap

₹347 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

10.0%

Moderate

Moderate capital efficiency

ROCE

13.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

21.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

49.2%

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

₹24 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

21.7%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

6.4%

Average

Average bottom-line conversion

Current Ratio

3.84

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

290.9 / 265.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

69.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹114 Cr	₹136 Cr	₹156 Cr	₹190 Cr	+18.4%
EBITDA	₹17 Cr	₹20 Cr	₹20 Cr	₹23 Cr	+10.6%
EBITDA Margin	15.2%	14.6%	13.0%	12.4%	—
PAT (Net Profit)	₹9 Cr	₹11 Cr	₹8 Cr	₹12 Cr	+8.6%
EPS	₹6.82	₹10.61	₹5.6	—	—
ROE	42.1%	19.2%	7.4%	10.0%	—
ROCE	46.5%	25.1%	10.5%	13.8%	—
Total Debt	₹20 Cr	₹4 Cr	₹52 Cr	₹23 Cr	+5.5%
Free Cash Flow	₹1 Cr	₹1 Cr	-₹38 Cr	₹24 Cr	+177.7%

🟢 Revenue has grown at 18.4% a year over 3 years.

🟢 EBITDA has grown at 10.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 15.2% to 12.4% over 3 years (-2.8 pts).

🟢 PAT (Net Profit) has grown at 8.6% a year over 3 years.

🔴 ROE has fallen from 42.1% to 10.0% over 3 years (-32.0 pts).

🔴 ROCE has fallen from 46.5% to 13.8% over 3 years (-32.7 pts).

🔴 Total Debt has grown at 5.5% a year over 3 years.

🟢 Free Cash Flow has grown at 177.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹175 Cr

Total Liabilities

₹36 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹34 Cr

Capex

-₹10 Cr

Recent News

2 mixed4 general

Infinium Pharmachem Share Price rises 10% on fundamentals

Univest, 30 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.

Infinium Pharmachem (NSEI:INFINIUM) - Stock Analysis

Simply Wall Street, 15 Apr

INFINIUM Stock Price and Chart — NSE:INFINIUM

TradingView, 02 May

Infinium Pharmachem Share Price rises 9.86%: valuation and

Univest, 25 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.

Infinium Pharmachem Limited announces its IPO for March 31, 2023, To be listed on NSE Emerge

Business Standard, 29 Mar

Ashish Kacholia holds a 4.6% stake in this debt-free pharma microcap

The Financial Express, 30 Jan

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability · Valuation

WeakRisk

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.

All 5 tripwires holding · see Key things to watch ↑