Evonile Pharma Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹1,880.80−₹59.30 (−3.06%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

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. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Evonile Pharma Limited is involved in the pharmaceutical business in India and internationally. It operates Pharma International (Commercial operations), Development (Drug development), Biomedical Research, and Operations.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees57

Annual revenue₹354 Cr

How does it make money?

Turns over ₹354 Cr a year. Of every ₹100 of sales, about ₹26 reaches shareholders as profit, with ₹37 left at the operating level before interest, tax and depreciation. Each of its 57 employees supports ₹6.22 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.22 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?Some evidence

ROCE of 15.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 -4% while net margin moved -6% 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-4%

Margin effect-6%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.4% a year
✗ Profit has declined at 3.4% a year

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

32/ 100

Expensive

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.

Historical Valuation

Current P/E

47.5x

0.7Y Median

41.2x

8 monthly readings · mean 41.0x · range 25.2x–50.8x

Sector Median

33.3x

median of 4 sector peers

⚠️Current valuation is approximately 15% above its 0.7y median of 41.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 42% above the peer median of 33.3x.

vs. its own history

Fair

41.2x median over 8 months · +15%

vs. sector peers

Expensive

33.3x median of 4 peers · +42%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

34.6x

PEG

2.86

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 35.1% to 37.5% over 3 years.
Debt is being paid down
Total debt is down 85% over 3 years.
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

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 35.1% to 37.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 85% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹46 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?

A premium to the sector to defend
It trades 42% above the peer median. That premium needs a reason that persists, or it closes.
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

1EBITDA margin holds above 35%✓ 37.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹46 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 13%✓ 15.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 41.2x✓ 47.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

6 good · 3 neutral · 2 weak

Market Cap

₹4,644 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

47.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.68x

Rich

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

EPS (TTM)

₹39.61

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

15.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.39x

Low

Conservative leverage

Revenue Growth (YoY)

18.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

16.6%

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

₹46 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

33.2%

Good

Healthy core-business profitability

Net Margin

26.4%

Good

Strong bottom-line conversion

Current Ratio

5.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

63%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1981.4 / 1811.5

Bullish alignment (short > long)

RSI (14)

42.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹369 Cr	₹334 Cr	₹356 Cr	₹354 Cr	-1.4%
EBITDA	₹129 Cr	₹123 Cr	₹138 Cr	₹133 Cr	+0.9%
EBITDA Margin	35.1%	36.9%	38.7%	37.5%	—
PAT (Net Profit)	₹103 Cr	₹85 Cr	₹101 Cr	₹93 Cr	-3.4%
EPS	—	₹34.5	₹40.87	₹37.74	—
ROE	13.3%	11.4%	12.9%	11.4%	—
ROCE	14.2%	16.2%	16.3%	15.7%	—
Total Debt	₹22 Cr	₹7 Cr	₹5 Cr	₹3 Cr	-47.0%
Free Cash Flow	₹44 Cr	₹113 Cr	₹75 Cr	₹46 Cr	+1.4%

🟡 Revenue has been broadly flat over 3 years (-1.4% a year).

🟡 EBITDA has been broadly flat over 3 years (0.9% a year).

🟢 EBITDA Margin has risen from 35.1% to 37.5% over 3 years (+2.4 pts).

🔴 PAT (Net Profit) has shrunk at 3.4% a year over 3 years.

🔴 ROE has fallen from 13.3% to 11.4% over 3 years (-1.9 pts).

🟢 ROCE has risen from 14.2% to 15.7% over 3 years (+1.5 pts).

🟢 Total Debt has shrunk at 47.0% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (1.4% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹978 Cr

Total Liabilities

₹160 Cr

Cash & Equivalents

₹53 Cr

Operating Cash Flow

₹47 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

15.0%

Insider Holding

58.7%

Corporate Actions

Ex-Dividend Date

20 Jul 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 mixed5 general

Evonile Pharma (BSE:500672) - Stock Analysis

Simply Wall Street, 02 Oct

Evonile Pharma Board Approves ₹900 Crore Rights Issue for Equity Expansion

Whalesbook, 08 OctCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Evonile Pharma board approves rights issue to raise up to ₹9,000 million

scanx.trade, 08 Oct

Evonile Pharma (500672) Balance Sheet & Financial Health Metrics

Simply Wall Street, 03 Oct

Evonile Pharma board to consider rights issue on October 8

scanx.trade, 05 Oct

Evonile Pharma (NSEI:NOVARTIND) - Stock Analysis

Simply Wall Street, 03 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingRisk

WeakGrowth · Valuation

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.

All 5 tripwires holding · see Key things to watch ↑