Mono Pharmacare Limited

Sector n/a · NSE

₹40.85+₹0.85 (+2.13%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

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

How does it make money?

Turns over ₹168 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 14.0% 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.

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 +355% while net margin moved +93% 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+355%

Margin effect+93%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

60/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

13.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 3.6% to 5.3% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 20.8% to 14.0% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 732% over 3 years, from ₹6 Cr to ₹54 Cr.
🔴High leverageFinancial
Debt/Equity of 1.72x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 659% against revenue up 355% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 1075% against revenue up 355% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.6% to 5.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

The debt load needs earnings to hold up
Debt is 6.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 659% against revenue up 355%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
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
5 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 49% a year✓ 65.7% CAGR
Latest reported year was 37.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 6.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.3x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹72 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹1.75

Profitable

Profitable on a per-share basis

ROE

9.9%

Moderate

Moderate capital efficiency

ROCE

14.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.72x

High

High leverage

Revenue Growth (YoY)

37.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

26.5%

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

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

9.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

1.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.07

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

8.6 / 8.6

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

58.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹37 Cr	₹58 Cr	₹122 Cr	₹168 Cr	+65.7%
EBITDA	₹1 Cr	₹3 Cr	₹6 Cr	₹9 Cr	+89.9%
EBITDA Margin	3.6%	5.3%	5.2%	5.3%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹2 Cr	₹3 Cr	+106.5%
EPS	₹0.2	₹0.7	₹1.59	₹1.75	+106.5%
ROE	8.2%	9.2%	8.7%	9.9%	—
ROCE	20.8%	9.6%	13.4%	14.0%	—
Total Debt	₹6 Cr	₹40 Cr	₹41 Cr	₹54 Cr	+102.6%
Free Cash Flow	₹0 Cr	-₹29 Cr	-₹9 Cr	-₹5 Cr	—

🟢 Revenue has grown at 65.7% a year over 3 years.

🟢 EBITDA has grown at 89.9% a year over 3 years.

🟢 EBITDA Margin has risen from 3.6% to 5.3% over 3 years (+1.8 pts).

🟢 PAT (Net Profit) has grown at 106.5% a year over 3 years.

🟢 EPS has grown at 106.5% a year over 3 years.

🟢 ROE has risen from 8.2% to 9.9% over 3 years (+1.7 pts).

🔴 ROCE has fallen from 20.8% to 14.0% over 3 years (-6.8 pts).

🔴 Total Debt has grown at 102.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹5 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹110 Cr

Total Liabilities

₹79 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹0 Cr

Recent News

1 negative5 general

Mono Pharmacare to launch IPO on August 28, price band at Rs 26-28 per share

Moneycontrol.com, 23 Aug

Mono Pharmacare Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Mono Pharmacare IPO opens today. GMP, price, review, other details in 10 points

Livemint, 28 Aug

Mono Pharmacare pays ₹96760 fine for NSE non-compliance

scanx.trade, 02 JulRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Upcoming IPOs: Mono Pharmacare, Rishabh Instruments IPO among IPOs to open this week; check full list of IPOs, share allotment, subscription, listings, and other details

Business News, 28 Aug

Rishabh Instruments IPO: Rishabh IPO opens tomorrow; here are 10 things to know

Livemint, 29 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongGrowth

MiddlingValuation

WeakBusiness Quality · Financial Health · Profitability · Risk

Points for each in the Score ↑

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. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑