Medico Intercontinental Limited

Healthcare — Drug Manufacturers - Specialty & Generic · BSE

₹26.00+₹1.84 (+7.62%)

DalalBaazaar Score

35 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:53 pm

Understanding the Business

Company site ↗

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

What does this company do?

Medico Intercontinental Limited engages in the trading of pharmaceutical products. It offers products in the gastro, uro, nutrition, cosmetology, and other areas, as well as provides health devices and hospital related products.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees41

Annual revenue₹84 Cr

How does it make money?

Turns over ₹84 Cr a year. Of every ₹100 of sales, about ₹-4 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 41 employees supports ₹2.05 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.05 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?Little sign of one

Returns on capital of -1.7% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +10% while net margin moved -180% 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+10%

Margin effect-180%

DalalBaazaar Score

35/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 15.6 points over the period

Quality vs. Valuation

Company Quality

33/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

24.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 8.8% to -6.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 12.8% to -1.7% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1325% over 3 years, from ₹5 Cr to ₹67 Cr.
🔴High leverageFinancial
Debt/Equity of 2.08x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹3 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 8.1x to -0.2x.
🟡Margins are compressingFinancial
EBITDA margin is down 3.3 points over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 68% against revenue up 10% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 7.6% to 4.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 18.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 3.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 8.8% to -6.8%. 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.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 2%✓ 4.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 18.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ -0.2x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 3.3% CAGR
Latest reported year was -3.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹12 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 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

2 good · 2 neutral · 7 weak

Market Cap

₹26 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.55x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-3.97

Loss-making

Negative earnings per share — the business is losing money

ROE

-6.8%

Weak

Weak capital efficiency

ROCE

-1.7%

Weak

Low return on total capital employed

Debt/Equity

2.08x

High

High leverage

Revenue Growth (YoY)

-3.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-163.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹12 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-8.5%

Weak

Thin margins leave little room for error

Net Margin

-4.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.62

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-1.08

Defensive

Steadier than the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

25.3 / 26.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹76 Cr	₹71 Cr	₹95 Cr	₹84 Cr	+3.3%
EBITDA	₹6 Cr	₹6 Cr	₹9 Cr	₹4 Cr	-14.5%
EBITDA Margin	7.6%	8.8%	9.0%	4.3%	—
PAT (Net Profit)	₹4 Cr	₹4 Cr	₹5 Cr	-₹3 Cr	—
EPS	₹5.61	₹3.95	₹5.06	₹-3.2	—
ROE	8.8%	8.8%	10.1%	-6.8%	—
ROCE	12.8%	12.6%	12.1%	-1.7%	—
Total Debt	₹5 Cr	₹5 Cr	₹17 Cr	₹67 Cr	+142.4%
Free Cash Flow	-₹11 Cr	₹4 Cr	-₹8 Cr	₹12 Cr	—

🟢 Revenue has grown at 3.3% a year over 3 years.

🔴 EBITDA has shrunk at 14.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.6% to 4.3% over 3 years (-3.3 pts).

🔴 PAT (Net Profit) has turned negative, from ₹4 Cr to -₹3 Cr.

🔴 EPS has turned negative, from ₹5.61 to ₹-3.2.

🔴 ROE has fallen from 8.8% to -6.8% over 3 years (-15.6 pts).

🔴 ROCE has fallen from 12.8% to -1.7% over 3 years (-14.5 pts).

🔴 Total Debt has grown at 142.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹11 Cr to ₹12 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹117 Cr

Total Liabilities

₹85 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹17 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

61.3%

Corporate Actions

Ex-Dividend Date

23 Jun 2023

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 positive2 mixed3 general

Medico Intercontinental 42nd AGM passes all 7 resolutions

scanx.trade, 30 Sept

Medico Intercontinental Q1 Results: Standalone profit rises 9% YoY to ₹60.8 lakh

scanx.trade, 16 AugResults

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

Suraj Ltd leads losers in 'B' group

Business Standard, 22 May

Medico Intercontinental Limited Schedules Board Meeting on May 22, 2026 to Approve Q4 and FY26 Audited Financial Results

scanx.trade, 22 MayResults

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

Q4 results 2026: BEL to LIC among 500 companies to declare Q4 results next week; full list here

Livemint, 17 MayResults

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

MIL Stock Price and Chart — BSE:MIL

TradingView, 31 Jan

Watch Items

Revenue growth is negative (-3.6%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

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 falls below 3x; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑