Lincoln Pharmaceuticals Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹548.00−₹7.00 (−1.26%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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 obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

Lincoln Pharmaceuticals Limited engages in manufacturing and trading of pharmaceutical products in India and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees1,352

Annual revenue₹662 Cr

How does it make money?

Turns over ₹662 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 1,352 employees supports ₹49.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin19.7%

Net margin13.3%

Revenue / employee₹49.0 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.

SUN PHARMACEUTICAL IND LP/E 34.9x · ROE 14.5%

DR. REDDY S LABORATORIESP/E 31.0x · ROE 8.8%

CIPLA LTDP/E 31.8x · ROE 9.8%

DIVI S LABORATORIES LTDP/E 83.0x · ROE 17.5%

What is its competitive advantage?Little sign of one

Returns on capital of 14.9% 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.

ROCE14.9%

ROE11.6%

Peer median ROE14.5%

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 +31% while net margin moved -8% 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+31%

Margin effect-8%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 9.5% is steady
✗ Profit CAGR of only 6.4%

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

76/ 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

11.4x

3Y Median

14.3x

40 monthly readings · mean 14.3x · range 11.1x–18.8x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 20% below its 3y median of 14.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 66% below the peer median of 33.3x.

vs. its own history

Cheap

14.3x median over 40 months · -20%

vs. sector peers

Cheap

33.3x median of 4 peers · -66%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

11.4x

P/B

1.45x

EV/EBITDA

8.3x

PEG

1.77

Dividend Yield

0.33%

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 222% over 3 years.
Valuation below its historical average
At 11.4x the stock trades 20% below its own median of 14.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 121% over 3 years — worth checking what it funded.
Return on capital is falling
ROCE has declined from 19.8% to 14.9% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 121% over 3 years, from ₹2 Cr to ₹4 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 20% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 66% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

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 18%✓ 19.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.5% CAGR
Latest reported year was 15.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹80 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 14.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 4 neutral · 0 weak

Market Cap

₹1,098 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.4x

Cheap

Cheap against the generic band

P/B Ratio

1.45x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹48.16

Profitable

Profitable on a per-share basis

ROE

11.6%

Moderate

Moderate capital efficiency

ROCE

14.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.58x

Low

Conservative leverage

Revenue Growth (YoY)

15.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

30.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.33%

Modest

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

Free Cash Flow

₹80 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹548

Operating Margin

13.3%

Average

Average margins

Net Margin

13.9%

Good

Strong bottom-line conversion

Current Ratio

5.25

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

574.4 / 598.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹505 Cr	₹581 Cr	₹615 Cr	₹662 Cr	+9.5%
EBITDA	₹107 Cr	₹111 Cr	₹117 Cr	₹130 Cr	+6.9%
EBITDA Margin	21.1%	19.2%	19.0%	19.7%	—
PAT (Net Profit)	₹73 Cr	₹93 Cr	₹82 Cr	₹88 Cr	+6.4%
EPS	₹36.4	₹46.58	₹41.11	₹43.88	+6.4%
ROE	14.5%	15.7%	12.3%	11.6%	—
ROCE	19.8%	20.3%	16.0%	14.9%	—
Total Debt	₹2 Cr	₹1 Cr	—	₹4 Cr	+30.3%
Free Cash Flow	₹25 Cr	₹24 Cr	₹74 Cr	₹80 Cr	+47.6%

🟢 Revenue has grown at 9.5% a year over 3 years.

🟢 EBITDA has grown at 6.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 21.1% to 19.7% over 3 years (-1.4 pts).

🟢 PAT (Net Profit) has grown at 6.4% a year over 3 years.

🟢 EPS has grown at 6.4% a year over 3 years.

🔴 ROE has fallen from 14.5% to 11.6% over 3 years (-2.9 pts).

🔴 ROCE has fallen from 19.8% to 14.9% over 3 years (-4.9 pts).

🔴 Total Debt has grown at 30.3% a year over 3 years.

🟢 Free Cash Flow has grown at 47.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹890 Cr

Total Liabilities

₹133 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹22 Cr

Operating Cash Flow

₹106 Cr

Capex

-₹26 Cr

Shareholding (proxy)

Institutional Holding

0.8%

Insider Holding

55.1%

Corporate Actions

Dividend Rate

₹1.8

Ex-Dividend Date

11 Sept 2026

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 positive1 mixed4 general

Lincoln Pharmaceuticals (BSE:531633) - Stock Analysis

Simply Wall Street, 15 Oct

Lincoln Pharmaceuticals senior quality head resigns over personal reasons

scanx.trade, 17 Oct

Lincoln Pharmaceuticals vs Nifty 50: Returns Compared

Univest, 05 Oct

Lincoln Pharmaceuticals declares ₹1.80 per share final dividend for FY26

scanx.trade, 16 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Stock to buy for long-term: Angel One sees 39% upside in this Gujarat-based pharma stock. Should you buy?

Livemint, 19 Aug

Lincoln Pharma jumps after Q1 PAT climbs 31% YoY to Rs 36 cr

Business Standard, 13 AugResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate10.5/20

🟢Financial HealthStrong14.6/20

🟡GrowthModest10.4/20

🟢ProfitabilityStrong9.9/15

🟢ValuationAttractive13.2/15

🟡RiskModerate6.2/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 18%19.7%
✓Revenue growth stays above 7% a year9.5% CAGR
✓Free cash flow remains positive₹80 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 12%14.9%