Medicamen Biotech Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹285.00−₹9.60 (−3.26%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by 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, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Medicamen Biotech Limited, a pharmaceutical company, research, develops, manufactures, markets, and sells pharmaceutical formulations in India and internationally. The company provides tablets, capsules, dry syrups, oral liquids, ointments, and other pharmaceutical dosage forms.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees405

Annual revenue₹198 Cr

How does it make money?

Turns over ₹198 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 405 employees supports ₹48.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹48.8 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 5.5% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +40% while net margin moved -54% 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+40%

Margin effect-54%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 5.5% is below 10% — capital is not working hard
✗ ROCE has fallen by 4.7 points — returns are eroding
✗ EBITDA margin of 11.5% is thin — little cushion if costs rise
✗ Net margin of 4.7% is slim
• Revenue has compounded at 12.0% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

54/ 100

Fair

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

38.5x

3Y Median

49.6x

40 monthly readings · mean 50.8x · range 32.7x–73.6x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 22% below its 3y median of 49.6x. 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 15% above the peer median of 33.3x.

vs. its own history

Cheap

49.6x median over 40 months · -22%

vs. sector peers

Fair

33.3x median of 4 peers · +15%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

17.8x

PEG

2.51

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.17x 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 7.7% to 3.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 10.2% to 5.5% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 86% over 3 years, from ₹26 Cr to ₹48 Cr.
🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.9 points, from 19.3% to 11.5%.
🟡Profit is decliningFinancial
Net profit is down 35% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 22% 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.
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 19.3% to 11.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 7.7% to 3.5%. 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.
Several serious flags at once
4 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

1Revenue growth stays above 9% a year✓ 12.0% CAGR
Latest reported year was 12.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹38 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 5.5%
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

5 good · 3 neutral · 3 weak

Market Cap

₹387 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.5x

Fair

Fairly valued against the generic band

P/B Ratio

1.22x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.41

Profitable

Profitable on a per-share basis

ROE

3.5%

Weak

Weak capital efficiency

ROCE

5.5%

Weak

Low return on total capital employed

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

12.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

15.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.35%

Modest

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

Free Cash Flow

-₹38 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.0%

Average

Average margins

Net Margin

4.7%

Average

Average bottom-line conversion

Current Ratio

2.54

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.69

Defensive

Steadier than the market

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

310.4 / 281.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

26.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹141 Cr	₹179 Cr	₹163 Cr	₹198 Cr	+12.0%
EBITDA	₹27 Cr	₹25 Cr	₹20 Cr	₹23 Cr	-5.9%
EBITDA Margin	19.3%	14.2%	12.4%	11.5%	—
PAT (Net Profit)	₹15 Cr	₹11 Cr	₹7 Cr	₹10 Cr	-13.4%
EPS	₹11.73	₹8.63	₹5.59	₹7.11	-15.4%
ROE	7.7%	5.3%	3.4%	3.5%	—
ROCE	10.2%	8.3%	6.0%	5.5%	—
Total Debt	₹26 Cr	₹31 Cr	₹34 Cr	₹48 Cr	+23.0%
Free Cash Flow	-₹13 Cr	-₹13 Cr	-₹10 Cr	-₹38 Cr	—

🟢 Revenue has grown at 12.0% a year over 3 years.

🔴 EBITDA has shrunk at 5.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 19.3% to 11.5% over 3 years (-7.9 pts).

🔴 PAT (Net Profit) has shrunk at 13.4% a year over 3 years.

🔴 EPS has shrunk at 15.4% a year over 3 years.

🔴 ROE has fallen from 7.7% to 3.5% over 3 years (-4.2 pts).

🔴 ROCE has fallen from 10.2% to 5.5% over 3 years (-4.7 pts).

🔴 Total Debt has grown at 23.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹372 Cr

Total Liabilities

₹96 Cr

Cash & Equivalents

₹31 Cr

Operating Cash Flow

-₹33 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.5%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

18 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

3 mixed3 general

Medicamen Biotech Share Price - Live NSE: MEDICAMEQ Stock Price & Chart

Upstox, 16 Oct

Medicamen Biotech Share Price Target 2026: Bull Case Rs 360, Bear

Univest, 30 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Medicamen Biotech (MEDICAMEQ.NS) Eases 2.04% to ₹312.1 as Stock Tests Lower Support Zone - Bollinger Band

https://www.siam.in/, 05 Oct

Medicamen Biotech shareholders approve all AGM resolutions

scanx.trade, 26 Sept

Medicamen Biotech Ltd. Share Price Fall: Stock Analysis

Univest, 17 AugPrice 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.

Earnings Not Telling The Story For Medicamen Biotech Limited (NSE:MEDICAMEQ) After Shares Rise 25%

Simply Wall Street, 01 NovPrice 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.

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

StrongValuation

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · 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. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑