Nexus Surgical and Medicare Limited

Healthcare — Medical Distribution · BSE

₹30.65−₹1.15 (−3.62%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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 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, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Nexus Surgical and Medicare Limited trades in medical supplies in India. The company offers surgical and pharmaceutical products; and various sizes of disposal syringes and pouches for storage of sterilized equipment and materials.

IndustryMedical Distribution

SectorHealthcare

Annual revenue₹8 Cr

How does it make money?

Turns over ₹8 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation.

EBITDA margin12.5%

Net margin9.4%

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, CIPLA LTD, DR. REDDY S LABORATORIES, APOLLO HOSPITALS ENTER. L. These are the companies its valuation and returns are measured against elsewhere in this report.

SUN PHARMACEUTICAL IND LP/E 34.9x · ROE 14.5%

CIPLA LTDP/E 31.8x · ROE 9.8%

DR. REDDY S LABORATORIESP/E 31.0x · ROE 8.8%

APOLLO HOSPITALS ENTER. LP/E 54.3x · ROE 22.0%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 54.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 40.9% 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.

ROCE54.6%

ROE40.9%

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 +407% while net margin moved -15% 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+407%

Margin effect-15%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.98 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

71/ 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

21.3x

3Y Median

37.6x

40 monthly readings · mean 34.8x · range 15.4x–71.0x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 43% below its 3y median of 37.6x. 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 36% below the peer median of 33.3x.

vs. its own history

Cheap

37.6x median over 40 months · -43%

vs. sector peers

Cheap

33.3x median of 4 peers · -36%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

21.3x

P/B

9.29x

EV/EBITDA

16.5x

PEG

0.34

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

High return on capital employed
ROCE of 54.6% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 21.3x the stock trades 43% below its own median of 37.6x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 14.0% to 12.5% over 3 years.
Return on equity is falling
ROE has dropped from 48.4% to 40.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 61.4% to 54.6% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 2957% against revenue growth of 407% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 2957% against revenue up 407% — 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 54.6% 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 43% 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 36% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 14.0% to 12.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 2957% against revenue up 407%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 48.4% to 40.9%. 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.
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.

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

1Revenue growth stays above 54% a year✓ 71.7% CAGR
Latest reported year was 47.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 52%✓ 54.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 37.6x✓ 21.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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

6 good · 4 neutral · 1 weak

Market Cap

₹17 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.3x

Fair

Fairly valued against the generic band

P/B Ratio

9.29x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.44

Profitable

Profitable on a per-share basis

ROE

40.9%

Strong

Strong capital efficiency

ROCE

54.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

47.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

32.1%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹30.65

Operating Margin

9.6%

Average

Average margins

Net Margin

9.1%

Average

Average bottom-line conversion

Current Ratio

1.96

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.98

Defensive

Steadier than the market

52W Range Position

77%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

31.7 / 26.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

47.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹3 Cr	₹6 Cr	₹8 Cr	+71.7%
EBITDA	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+65.4%
EBITDA Margin	14.0%	8.1%	15.0%	12.5%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+62.8%
EPS	₹0.31	₹0.39	₹0.91	₹1.35	+63.3%
ROE	48.4%	37.7%	46.8%	40.9%	—
ROCE	61.4%	49.4%	72.8%	54.6%	—
Free Cash Flow	₹1 Cr	-₹0 Cr	₹0 Cr	₹0 Cr	-85.3%

🟢 Revenue has grown at 71.7% a year over 3 years.

🟢 EBITDA has grown at 65.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 14.0% to 12.5% over 3 years (-1.5 pts).

🟢 PAT (Net Profit) has grown at 62.8% a year over 3 years.

🟢 EPS has grown at 63.3% a year over 3 years.

🔴 ROE has fallen from 48.4% to 40.9% over 3 years (-7.5 pts).

🔴 ROCE has fallen from 61.4% to 54.6% over 3 years (-6.8 pts).

🔴 Free Cash Flow has shrunk at 85.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4 Cr

Total Liabilities

₹2 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.0%

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%
DR. REDDY S LABORATORIES	31.0x	8.8%
APOLLO HOSPITALS ENTER. L	54.3x	22.0%

Recent News

1 negative5 general

Nexus Surgical And Medicare Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Nexus Surgical and Medicare Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Nexus Surgical appoints Ashish Durgaprasad Mishra as Independent Director

scanx.trade, 26 Sept

Centuple Global (BSE:531099) - Stock Analysis

Simply Wall Street, 29 May

Nexus Surgical And Medicare Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Praj Industries consolidated net profit declines 70.84% in the March 2026 quarter

Business Standard, 29 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟡Business QualityAdequate12.6/20

🟢Financial HealthStrong17.3/20

🟡GrowthModest12.9/20

🟡ProfitabilityModerate9.3/15

🟡ValuationFair9.1/15

🔴RiskHigh4.4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 54% a year71.7% CAGR
✓EBITDA margin holds above 11%12.5%
✓Free cash flow remains positive₹0 Cr
✓ROCE stays above 52%54.6%
✓Valuation vs its own median of 37.6x21.3x today