Marksans Pharma Limited

Healthcare — Drug Manufacturers - General · NSE

₹310.80+₹2.95 (+0.96%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Marksans Pharma Limited, together with its subsidiaries, engages in the research, manufacturing, marketing, and sale of pharmaceutical formulations in the United States, North America, Europe, the United Kingdom, Australia, New Zealand, and internationally.

IndustryDrug Manufacturers - General

SectorHealthcare

Employees1,685

Annual revenue₹2,942 Cr

How does it make money?

Turns over ₹2,942 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹24 left at the operating level before interest, tax and depreciation. Each of its 1,685 employees supports ₹1.75 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.75 Cr

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 17.5% 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?

3 analysts covering the stock expect revenue to grow about 12.0% and earnings to grow about 12.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.0%

Est. earnings growth+12.1%

Analysts3

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 +59% 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+59%

Margin effect-1%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 27.2x already prices in growth
• P/E is close to its own historical median of 29.3x

Quality vs. Valuation

Company Quality

80/ 100

Excellent

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

Valuation

53/ 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

27.2x

3Y Median

29.3x

40 monthly readings · mean 28.6x · range 16.5x–49.5x

Sector Median

33.3x

median of 4 sector peers

🟡Currently trading close to its 3y median of 29.3x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 18% below the peer median of 33.3x.

vs. its own history

Fair

29.3x median over 40 months · -7%

vs. sector peers

Fair

33.3x median of 4 peers · -18%

vs. generic bands

Fair

15x–35x

EV/EBITDA

19.9x

PEG

1.68

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 78% over 3 years.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 179% over 3 years, from ₹123 Cr to ₹343 Cr.
🟡Inventory building faster than salesFinancial
Inventory up 101% against revenue up 59% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹328 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?

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 13% a year✓ 16.7% CAGR
Latest reported year was 35.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 22%✓ 23.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹328 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 17.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 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

6 good · 5 neutral · 0 weak

Market Cap

₹14,084 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.2x

Fair

Fairly valued against the generic band

P/B Ratio

4.66x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.41

Profitable

Profitable on a per-share basis

ROE

13.8%

Moderate

Moderate capital efficiency

ROCE

17.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

35.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

169.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.29%

Modest

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

Free Cash Flow

₹328 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

22.1x

Improving

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

Operating Margin

22.4%

Good

Healthy core-business profitability

Net Margin

16.3%

Good

Strong bottom-line conversion

Current Ratio

5.17

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.15

Market-like

Moves roughly in line with the market

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

325.0 / 320.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

36.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,850 Cr	₹2,174 Cr	₹2,614 Cr	₹2,942 Cr	+16.7%
EBITDA	₹421 Cr	₹508 Cr	₹602 Cr	₹695 Cr	+18.2%
EBITDA Margin	22.7%	23.4%	23.0%	23.6%	—
PAT (Net Profit)	₹266 Cr	₹314 Cr	₹381 Cr	₹418 Cr	+16.2%
EPS	₹6.41	₹6.92	₹8.4	₹9.22	+12.9%
ROE	15.3%	15.2%	15.4%	13.8%	—
ROCE	18.6%	19.0%	18.7%	17.5%	—
Total Debt	₹123 Cr	₹244 Cr	₹322 Cr	₹343 Cr	+40.8%
Free Cash Flow	₹184 Cr	₹22 Cr	₹34 Cr	₹328 Cr	+21.2%

🟢 Revenue has grown at 16.7% a year over 3 years.

🟢 EBITDA has grown at 18.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 23.6% over 3 years.

🟢 PAT (Net Profit) has grown at 16.2% a year over 3 years.

🟢 EPS has grown at 12.9% a year over 3 years.

🔴 ROE has fallen from 15.3% to 13.8% over 3 years (-1.4 pts).

🔴 ROCE has fallen from 18.6% to 17.5% over 3 years (-1.0 pts).

🔴 Total Debt has grown at 40.8% a year over 3 years.

🟢 Free Cash Flow has grown at 21.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,861 Cr

Total Liabilities

₹808 Cr

Cash & Equivalents

₹634 Cr

Operating Cash Flow

₹458 Cr

Capex

-₹131 Cr

Shareholding (proxy)

Institutional Holding

18.4%

Insider Holding

43.9%

Corporate Actions

Dividend Rate

₹0.9

Ex-Dividend Date

20 Aug 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹324.33

+4.4% vs CMP

Target Range

₹210 – ₹385

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

2 positive2 mixed2 general

Marksans Pharma Share Price

Upstox, 16 Oct

Marksans Pharma Limited (NSE:MARKSANS) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

Simply Wall Street, 16 AugCapital return

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

Marksans Pharma Share Price News: Price Fall and Valuation

Univest, 08 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Marksans Pharma shares rally over 9% after Q1 profit spikes 174% YoY to Rs 159 crore

The Economic Times, 12 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.

Marksans Pharma (MARKSANS.NS) Slips 2.19% to ₹324.4 as Stock Tests Mid-Range Support - Fundamentals

https://www.siam.in/, 07 Oct

Marksans Pharma Stock Jumps 11% After Net Profit Jumps 2.5x, Revenue Surges 36%

NDTV Profit, 12 AugResults

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

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · 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 ↑