Nureca Limited

Healthcare — Medical Devices · NSE

₹324.90+₹5.20 (+1.63%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Nureca Limited provides home healthcare and wellness products in India.

IndustryMedical Devices

SectorHealthcare

Employees154

Annual revenue₹147 Cr

How does it make money?

Turns over ₹147 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 154 employees supports ₹95.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹95.4 lakh

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 3.0% 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.

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 +32% while net margin moved -119% 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+32%

Margin effect-119%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.60 — 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

48/ 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.

Historical Valuation

Current P/E

75.6x

1.3Y Median

307.6x

16 monthly readings · mean 277.9x · range 152.1x–404.2x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 75% below its 1.3y median of 307.6x. 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 127% above the peer median of 33.3x.

vs. its own history

Cheap

307.6x median over 16 months · -75%

vs. sector peers

Expensive

33.3x median of 4 peers · +127%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

20.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -9.2% to 10.9% over 3 years.
Debt is being paid down
Total debt is down 32% over 3 years.
Return on equity is rising
ROE has improved from -4.2% to 1.2%.
Return on capital is rising
ROCE has improved from -5.3% to 3.0%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴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 80% against revenue up 32% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -9.2% to 10.9%. 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 32% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 75% 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.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 80% against revenue up 32%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 127% above the peer median. That premium needs a reason that persists, or it closes.
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

1EBITDA margin holds above 9%✓ 10.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 7% a year✓ 9.7% CAGR
Latest reported year was 18.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 3.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹325 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

75.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.72x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.3

Profitable

Profitable on a per-share basis

ROE

1.2%

Weak

Weak capital efficiency

ROCE

3.0%

Weak

Low return on total capital employed

Debt/Equity

1.25x

Moderate

Moderate leverage

Revenue Growth (YoY)

18.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

296.3%

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

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.1%

Average

Average margins

Net Margin

2.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

8.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.60

Defensive

Steadier than the market

52W Range Position

70%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

339.2 / 332.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

26.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹111 Cr	₹92 Cr	₹110 Cr	₹147 Cr	+9.7%
EBITDA	-₹10 Cr	-₹6 Cr	₹0 Cr	₹16 Cr	—
EBITDA Margin	-9.2%	-6.2%	0.1%	10.9%	—
PAT (Net Profit)	-₹8 Cr	-₹2 Cr	₹1 Cr	₹2 Cr	—
EPS	₹-8.25	₹-1.79	₹0.85	₹2.11	—
ROE	-4.2%	-0.9%	0.4%	1.2%	—
ROCE	-5.3%	-1.1%	0.9%	3.0%	—
Total Debt	₹3 Cr	₹3 Cr	₹5 Cr	₹2 Cr	-12.1%
Free Cash Flow	₹10 Cr	-₹4 Cr	-₹23 Cr	-₹4 Cr	—

🟢 Revenue has grown at 9.7% a year over 3 years.

🟢 EBITDA has turned positive, from -₹10 Cr to ₹16 Cr.

🟢 EBITDA Margin has risen from -9.2% to 10.9% over 3 years (+20.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹8 Cr to ₹2 Cr.

🟢 EPS has turned positive, from ₹-8.25 to ₹2.11.

🟢 ROE has risen from -4.2% to 1.2% over 3 years (+5.4 pts).

🟢 ROCE has risen from -5.3% to 3.0% over 3 years (+8.3 pts).

🟢 Total Debt has shrunk at 12.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹10 Cr to -₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹196 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.8%

Corporate Actions

Ex-Dividend Date

24 Feb 2022

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

2 positive1 mixed3 general

Nureca Ltd closes DRI customs case with ₹57.13 lakh appropriation

scanx.trade, 17 Oct

With EPS Growth And More, Nureca (NSE:NURECA) Makes An Interesting Case

Simply Wall Street, 16 Jul

NURECA Historical Data

Equitypandit, 26 Dec

Nureca Share Price Up 5% on ₹19.14 Cr Buyback at ₹330

HDFC Sky, 28 NovCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Why Are Nureca (NSE: NURECA) Shares Sliding After Reporting Q4 Losses?

Kalkine India, 01 JunResults

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

Nureca shares hit 5% upper circuit as board to consider buyback on Nov 28

Business Standard, 26 NovCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

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

StrongGrowth

MiddlingFinancial Health · Profitability · Valuation

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

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑