Oxygenta Pharmaceutical Limited

Healthcare — Drug Manufacturers - Specialty & Generic · BSE

₹47.00+₹0.74 (+1.60%)

DalalBaazaar Score

32 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, though profits are falling even as sales grow. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Oxygenta Pharmaceutical Limited manufactures and sells pharmaceutical, medical, and veterinary preparations in India and internationally. It offers active pharmaceuticals ingredients, commercial intermediates, and organic fine chemicals, as well as formulations.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees170

Annual revenue₹113 Cr

How does it make money?

Turns over ₹113 Cr a year. Of every ₹100 of sales, about ₹-16 reaches shareholders as profit, with ₹-13 left at the operating level before interest, tax and depreciation. Each of its 170 employees supports ₹66.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹66.5 lakh

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 -52.1% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +265% while net margin moved -58% 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+265%

Margin effect-58%

DalalBaazaar Score

32/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

30/ 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

Multiples unreliable — equity base is negative

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from -23.0% to -13.0% over 3 years.

🔴 What Needs Attention0

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

Red Flags

7 items require attention · 5 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Debt has risen sharplyFinancial
Total debt is up 61% over 3 years, from ₹68 Cr to ₹110 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -3.7x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹18 Cr in the latest reported year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 160% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.60 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -23.0% to -13.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
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 40% a year✓ 53.9% CAGR
Latest reported year was 144.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -15%✓ -13.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹41 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -3.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ 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

1 good · 4 neutral · 6 weak

Market Cap

₹174 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

Not available

No data

Source didn't return this field

EPS (TTM)

₹-3.67

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-52.1%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

144.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-70.6%

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

-₹41 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-0.2%

Weak

Thin margins leave little room for error

Net Margin

-10.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.60

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.80

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

48.7 / 54.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹31 Cr	₹40 Cr	₹109 Cr	₹113 Cr	+53.9%
EBITDA	-₹7 Cr	-₹10 Cr	-₹8 Cr	-₹15 Cr	—
EBITDA Margin	-23.0%	-24.4%	-7.3%	-13.0%	—
PAT (Net Profit)	-₹12 Cr	-₹3 Cr	-₹10 Cr	-₹18 Cr	—
EPS	₹-8.15	₹-1.09	₹-2.86	₹-4.75	—
ROCE	-46.3%	-41.7%	—	-52.1%	—
Total Debt	₹68 Cr	₹57 Cr	₹62 Cr	₹110 Cr	+17.2%
Free Cash Flow	-₹11 Cr	-₹17 Cr	-₹9 Cr	-₹41 Cr	—

🟢 Revenue has grown at 53.9% a year over 3 years.

🟢 EBITDA Margin has risen from -23.0% to -13.0% over 3 years (+10.0 pts).

🔴 ROCE has fallen from -46.3% to -52.1% over 3 years (-5.8 pts).

🔴 Total Debt has grown at 17.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹120 Cr

Total Liabilities

₹162 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹28 Cr

Capex

-₹13 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.1%

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

Oxygenta Pharma seeks approval for ₹450 crore RPTs at AGM

scanx.trade, 30 Jul

Oxygenta Pharmaceutical Ltd. Share Price Rise and Analysis

Univest, 12 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Oxygenta Pharma shareholders approve all seven AGM resolutions

scanx.trade, 21 Aug

Oxygenta Pharmaceutical Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Oxygenta Pharmaceutical sets Aug 15-21 book closure for 33rd AGM

scanx.trade, 30 Jul

OXYGENTA PHARMACEUTICAL LIMITE Share Price

Upstox, 23 Mar

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

StrongGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Oxygenta Pharmaceutical Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 5 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑