Medico Remedies Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹22.13+₹0.22 (+1.00%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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

In simple words: Strong business and financial position, 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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Medico Remedies Limited develops, manufactures, and sells pharmaceutical and nutraceutical products in India.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees105

Annual revenue₹204 Cr

How does it make money?

Turns over ₹204 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 105 employees supports ₹1.94 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.94 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.4% against a peer median of 14.5% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +47% 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+47%

Margin effect+23%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ ROCE of 25.1% is above 20% — the business earns a high return on the capital it employs
• ROCE has been broadly stable
✗ EBITDA margin of 10.8% is thin — little cushion if costs rise
✗ Net margin of 5.8% is slim
• Revenue has compounded at 13.8% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

81/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.3x

3Y Median

46.1x

40 monthly readings · mean 50.7x · range 13.6x–99.7x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 71% below its 3y median of 46.1x. 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 60% below the peer median of 33.3x.

vs. its own history

Cheap

46.1x median over 40 months · -71%

vs. sector peers

Cheap

33.3x median of 4 peers · -60%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.1x

PEG

0.61

What's Good / What's Bad

🟢 What's Going Well3

High return on capital employed
ROCE of 25.1% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.25x 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 · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 97% over 3 years, from ₹10 Cr to ₹19 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 127% against revenue up 47% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.1% 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.
Priced below its own history
The stock trades 71% 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 60% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 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?

Sales are being booked faster than collected
Receivables are up 127% against revenue up 47%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
2 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 10% a year✓ 13.8% CAGR
Latest reported year was 81.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 10.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 25.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

8 good · 3 neutral · 0 weak

Market Cap

₹184 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.3x

Cheap

Cheap against the generic band

P/B Ratio

2.42x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.67

Profitable

Profitable on a per-share basis

ROE

17.4%

Strong

Strong capital efficiency

ROCE

25.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

81.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

36.4%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.7%

Weak

Thin margins leave little room for error

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

1.66

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.71

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

25.1 / 35.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹138 Cr	₹143 Cr	₹149 Cr	₹204 Cr	+13.8%
EBITDA	₹16 Cr	₹15 Cr	₹17 Cr	₹22 Cr	+11.2%
EBITDA Margin	11.6%	10.4%	11.7%	10.8%	—
PAT (Net Profit)	₹7 Cr	₹8 Cr	₹10 Cr	₹13 Cr	+21.9%
EPS	₹0.87	₹1	₹1.22	₹1.58	+22.0%
ROE	16.5%	15.8%	16.2%	17.4%	—
ROCE	23.4%	22.4%	22.8%	25.1%	—
Total Debt	₹10 Cr	₹8 Cr	₹15 Cr	₹19 Cr	+25.5%
Free Cash Flow	₹2 Cr	-₹0 Cr	₹2 Cr	₹1 Cr	-4.2%

🟢 Revenue has grown at 13.8% a year over 3 years.

🟢 EBITDA has grown at 11.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 10.8% over 3 years.

🟢 PAT (Net Profit) has grown at 21.9% a year over 3 years.

🟢 EPS has grown at 22.0% a year over 3 years.

🟡 ROE has held roughly flat at 17.4% over 3 years.

🟢 ROCE has risen from 23.4% to 25.1% over 3 years (+1.8 pts).

🔴 Total Debt has grown at 25.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 4.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹153 Cr

Total Liabilities

₹78 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.2%

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 mixed5 general

Medico Remedies (MEDICO) Share/Stock Price Live, NSE

TechGraph, 12 Oct

Medico Remedies Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 25 Sept

Here's Why We Think Medico Remedies (NSE:MEDICO) Is Well Worth Watching

Simply Wall Street, 29 Jul

Medico Remedies Ltd leads losers in 'B' group

Business Standard, 25 Sept

Medico Remedies closes trading window ahead of Q2FY27 results

scanx.trade, 29 SeptResults

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

Medico Remedies among 5 Healthcare stocks hitting 52-week low; slipped up to 48% in a month - New Bottoms

The Economic Times, 29 Sept

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.
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

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑