Poly Medicure Limited

Healthcare — Medical Instruments & Supplies · NSE

₹1,585.10+₹1.30 (+0.08%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Poly Medicure Limited engages in the manufacture and sale of medical devices in India and internationally.

IndustryMedical Instruments & Supplies

SectorHealthcare

Employees2,614

Annual revenue₹1,875 Cr

How does it make money?

Turns over ₹1,875 Cr a year. Of every ₹100 of sales, about ₹18 reaches shareholders as profit, with ₹30 left at the operating level before interest, tax and depreciation. Each of its 2,614 employees supports ₹71.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹71.7 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 13.3% 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 is the outlook?

6 analysts covering the stock expect revenue to grow about 18.7% and earnings to grow about 20.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.7%

Est. earnings growth+20.5%

Analysts6

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 +69% while net margin moved +9% 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+69%

Margin effect+9%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 51.0x is demanding — it needs sustained high growth to justify
✓ P/E is 35% below its own historical median of 78.0x — cheap by its own standards
✗ P/B of 5.17x is a steep premium to book

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

51.0x

3Y Median

78.0x

40 monthly readings · mean 72.0x · range 34.9x–106.9x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 3y median of 78.0x. 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 53% above the peer median of 33.3x.

vs. its own history

Cheap

78.0x median over 40 months · -35%

vs. sector peers

Expensive

33.3x median of 4 peers · +53%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

28.8x

PEG

2.25

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 27.7% to 30.3% over 3 years.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 14.4% to 10.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.2% to 13.3% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 137% over 3 years, from ₹149 Cr to ₹354 Cr.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 126% against revenue up 69% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 108% against revenue up 69% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 27.7% to 30.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 35% 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.
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?

Sales are being booked faster than collected
Receivables are up 126% against revenue up 69%. 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 53% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 14.4% to 10.7%. 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.
Size brings its own risk
Small 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

1Revenue growth stays above 14% a year✓ 19.1% CAGR
Latest reported year was 30.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 28%✓ 30.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹62 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹16,067 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

51.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.17x

Rich

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

EPS (TTM)

₹31.06

Profitable

Profitable on a per-share basis

ROE

10.7%

Moderate

Moderate capital efficiency

ROCE

13.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

30.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-7.5%

Falling

Profits are shrinking

Dividend Yield

0.22%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹62 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

32.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

16.9%

Good

Healthy core-business profitability

Net Margin

15.8%

Good

Strong bottom-line conversion

Current Ratio

3.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.00

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1648.0 / 1708.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

31.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,109 Cr	₹1,366 Cr	₹1,670 Cr	₹1,875 Cr	+19.1%
EBITDA	₹307 Cr	₹399 Cr	₹548 Cr	₹568 Cr	+22.7%
EBITDA Margin	27.7%	29.2%	32.8%	30.3%	—
PAT (Net Profit)	₹179 Cr	₹258 Cr	₹339 Cr	₹331 Cr	+22.7%
EPS	₹18.67	₹26.9	₹34.11	₹31.75	+19.4%
ROE	14.4%	17.6%	12.2%	10.7%	—
ROCE	19.2%	23.5%	16.5%	13.3%	—
Total Debt	₹149 Cr	₹174 Cr	₹180 Cr	₹354 Cr	+33.4%
Free Cash Flow	-₹48 Cr	-₹11 Cr	-₹98 Cr	-₹62 Cr	—

🟢 Revenue has grown at 19.1% a year over 3 years.

🟢 EBITDA has grown at 22.7% a year over 3 years.

🟢 EBITDA Margin has risen from 27.7% to 30.3% over 3 years (+2.6 pts).

🟢 PAT (Net Profit) has grown at 22.7% a year over 3 years.

🟢 EPS has grown at 19.4% a year over 3 years.

🔴 ROE has fallen from 14.4% to 10.7% over 3 years (-3.8 pts).

🔴 ROCE has fallen from 19.2% to 13.3% over 3 years (-5.8 pts).

🔴 Total Debt has grown at 33.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,919 Cr

Total Liabilities

₹769 Cr

Cash & Equivalents

₹51 Cr

Operating Cash Flow

₹246 Cr

Capex

-₹308 Cr

Shareholding (proxy)

Institutional Holding

18.1%

Insider Holding

63.6%

Corporate Actions

Dividend Rate

₹3.5

Ex-Dividend Date

28 Aug 2026

Analyst Consensus

Recommendations

4 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹1,858.17

+17.2% vs CMP

Target Range

₹1,528 – ₹2,240

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

3 mixed3 general

Poly Medicure (NSEI:POLYMED) Stock Forecast & Analyst Predictions

Simply Wall Street, 07 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

POLYMED Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Poly Medicure Stock Signals to Watch This Week

Univest, 23 Sept

Poly Medicure targets ₹2,300–2,400 crore FY27 revenue, sees margins improving

CNBC TV18, 10 Aug

Earnings call transcript: Poly Medicure beats Q1 2026 estimates, shares rise 4.6%

Investing.com, 10 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.

Here's Why We Think Poly Medicure (NSE:POLYMED) Is Well Worth Watching

Simply Wall Street, 26 May

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth

MiddlingProfitability · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑