Aanjaay Industries Limited

Healthcare — Drug Manufacturers - Specialty & Generic · BSE

₹17.27−₹0.24 (−1.37%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Aanjaay Industries Limited engages in the manufacture and trade of pharmaceutical products.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Annual revenue₹93 Cr

How does it make money?

Turns over ₹93 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation.

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?Some evidence

ROCE of 19.3% 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%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of -0.13 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

87/ 100

Cheap

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

5.3x

Sector Median

33.3x

median of 4 sector peers

🟢Against its sector it trades 84% below the peer median of 33.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

33.3x median of 4 peers · -84%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 59% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.92x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 440% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 59% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 84% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 1.92x. Interest is payable whether or not the business has a good year.
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
3 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%✓ 6.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 16%✓ 19.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

7 good · 2 neutral · 2 weak

Market Cap

₹41 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.3x

Cheap

Cheap against the generic band

P/B Ratio

1.38x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.26

Profitable

Profitable on a per-share basis

ROE

16.7%

Strong

Strong capital efficiency

ROCE

19.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.92x

High

High leverage

Revenue Growth (YoY)

546.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

556.9%

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

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.0%

Average

Average margins

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

1.48

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.13

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

18.7 / 20.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	-₹0 Cr	-₹1 Cr	-₹1 Cr	₹6 Cr	—
PAT (Net Profit)	-₹0 Cr	-₹1 Cr	-₹1 Cr	₹5 Cr	—
EPS	₹-0.77	₹-1.68	₹-0.99	₹2.09	—
ROE	—	-68.0%	-4.4%	16.7%	—
ROCE	—	-68.0%	-4.4%	19.3%	—
Total Debt	₹1 Cr	₹2 Cr	₹0 Cr	₹1 Cr	-25.6%
Free Cash Flow	-₹0 Cr	-₹0 Cr	-₹5 Cr	-₹10 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹6 Cr.

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹5 Cr.

🟢 EPS has turned positive, from ₹-0.77 to ₹2.09.

🟢 ROE has risen from -68.0% to 16.7% over 3 years (+84.7 pts).

🟢 ROCE has risen from -68.0% to 19.3% over 3 years (+87.3 pts).

🟢 Total Debt has shrunk at 25.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹86 Cr

Total Liabilities

₹57 Cr

Cash & Equivalents

₹11 Cr

Operating Cash Flow

-₹9 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

22.4%

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

6 general

Aanjaay Industries (BSE:524322) - Stock Analysis

Simply Wall Street, 15 Jul

Aanjaay Industries AGM resolutions pass with over 99% votes in favour

scanx.trade, 30 Sept

Aanjaay Industries schedules board meeting for September 2, 2026

scanx.trade, 02 Sept

Welcure Drugs and Pharmaceuticals (BSE:524661) - Stock Analysis

Simply Wall Street, 10 Sept

Kabra Drugs Limited Submits Q4FY26 SEBI Compliance Certificate for Dematerialization Process

scanx.trade, 07 Apr

Rekvina Laboratories Limited (VINRKLB.BO) stock price, news, quote and history

Yahoo Finance Singapore, 20 May

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongProfitability · Valuation

MiddlingBusiness Quality · Financial Health · Growth

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

1 of 4 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑