Pharmaids Pharmaceuticals Limited

Healthcare — Drug Manufacturers - Specialty & Generic · BSE

₹30.59+₹0.14 (+0.46%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Pharmaids Pharmaceuticals Limited, together with its subsidiaries, provides contract research and manufacturing services for pharma, biotech, agro, and chemical industries in India.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees127

Annual revenue₹27 Cr

How does it make money?

Turns over ₹27 Cr a year. Of every ₹100 of sales, about ₹-43 reaches shareholders as profit, with ₹-49 left at the operating level before interest, tax and depreciation. Each of its 127 employees supports ₹21.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-49.2%

Net margin-42.8%

Revenue / employee₹21.6 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.

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

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

CIPLA LTDP/E 31.8x · ROE 9.8%

DIVI S LABORATORIES LTDP/E 83.0x · ROE 17.5%

What is its competitive advantage?Little sign of one

Returns on capital of -20.6% 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.

ROCE-20.6%

ROE-24.6%

Peer median ROE14.5%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✓ ROE has improved by 9.1 points over the period

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

29/ 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

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

2.28x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from -33.6% to -24.6%.
Return on capital is rising
ROCE has improved from -44.1% to -20.6%.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Short-term liquidity is tight
Current ratio of 0.46 — near-term obligations exceed near-term assets.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -4.0x — 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 -₹12 Cr in the latest reported year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 64% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.46 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

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
3 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

1EBITDA margin holds above -51%✓ -49.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -4.0x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -20.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

1 good · 3 neutral · 7 weak

Market Cap

₹108 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

2.28x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-1.28

Loss-making

Negative earnings per share — the business is losing money

ROE

-24.6%

Weak

Weak capital efficiency

ROCE

-20.6%

Weak

Low return on total capital employed

Debt/Equity

0.49x

Low

Conservative leverage

Revenue Growth (YoY)

-38.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-8.7%

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

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹30.59

Operating Margin

-29.8%

Weak

Thin margins leave little room for error

Net Margin

-18.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.46

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.11

Defensive

Steadier than the market

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

30.1 / 31.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹15 Cr	₹19 Cr	₹27 Cr	—
EBITDA	-₹10 Cr	-₹12 Cr	-₹13 Cr	-₹13 Cr	—
EBITDA Margin	—	-76.2%	-67.7%	-49.2%	—
PAT (Net Profit)	-₹8 Cr	-₹8 Cr	-₹11 Cr	-₹12 Cr	—
EPS	₹-5.86	₹-3.56	₹-3.05	₹-3.31	—
ROE	-33.6%	-11.1%	-18.2%	-24.6%	—
ROCE	-44.1%	-17.7%	-16.8%	-20.6%	—
Total Debt	—	₹9 Cr	₹39 Cr	₹23 Cr	—
Free Cash Flow	-₹6 Cr	-₹33 Cr	-₹28 Cr	-₹9 Cr	—

🟢 EBITDA Margin has risen from -76.2% to -49.2% over 3 years (+27.1 pts).

🟢 ROE has risen from -33.6% to -24.6% over 3 years (+9.1 pts).

🟢 ROCE has risen from -44.1% to -20.6% over 3 years (+23.5 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹87 Cr

Total Liabilities

₹40 Cr

Total Debt

₹23 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.3%

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 negative5 general

Pharmaids Pharmaceuticals Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 12 Sept

Pharmaids Pharmaceuticals files complaint over ₹2.62 Cr cheque dishonour

scanx.trade, 16 Sept

Pharmaids Pharmaceuticals Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Best Healthcare Penny Stocks in 2026 | Top Stocks to Buy Now

Univest, 28 Sept

KNR Constructions consolidated net profit declines 23.72% in the March 2026 quarter

Business Standard, 30 MayResults

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

PHARMAIDS PHARMACEUTICALS LTD. Share Price - Live PHARMAID Stock Price & Chart

Upstox, 29 Mar

Watch Items

Revenue growth is negative (-38.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🔴Financial HealthStretched7.8/20

🟡GrowthModest10/20

🔴ProfitabilityWeak5/15

🔴ValuationDemanding5.1/15

🟡RiskModerate5.4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -51%-49.2%
✗Free cash flow remains positive-₹9 Cr
✗Interest cover stays above 3x-4.0x
✗ROCE stays above 8%-20.6%