QMS Medical Allied Services Limited

Healthcare — Medical Instruments & Supplies · NSE

₹169.00−₹1.77 (−1.04%)

DalalBaazaar Score

61 / 100

🟢 Good

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. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

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 QMS Medical Allied Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

QMS Medical Allied Services Limited distributes medical and healthcare products in India.

IndustryMedical Instruments & Supplies

SectorHealthcare

Employees1,037

Annual revenue₹173 Cr

How does it make money?

Turns over ₹173 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 1,037 employees supports ₹16.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹16.7 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?Some evidence

ROCE of 18.4% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +66% while net margin moved -4% 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+66%

Margin effect-4%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 28.7x already prices in growth
✗ P/E is 29% above its own historical median of 22.2x — expensive by its own standards
✗ P/B of 5.70x is a steep premium to book

Quality vs. Valuation

Company Quality

68/ 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

28.7x

3Y Median

22.2x

40 monthly readings · mean 23.7x · range 10.8x–46.8x

Sector Median

33.3x

median of 4 sector peers

⚠️Current valuation is approximately 29% above its 3y median of 22.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 33.3x.

vs. its own history

Expensive

22.2x median over 40 months · +29%

vs. sector peers

Fair

33.3x median of 4 peers · -14%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.0x

PEG

1.72

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 11.4% to 15.4% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 14.8% to 18.4%.
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

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 192% over 3 years, from ₹26 Cr to ₹74 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 11.4% to 15.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

The price already assumes success
The stock trades 29% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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

1Revenue growth stays above 14% a year✓ 18.4% CAGR
Latest reported year was 22.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.8x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹19 Cr
Profit that never becomes cash eventually stops being profit.

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

5 good · 5 neutral · 1 weak

Market Cap

₹327 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.7x

Fair

Fairly valued against the generic band

P/B Ratio

5.70x

Rich

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

EPS (TTM)

₹5.89

Profitable

Profitable on a per-share basis

ROE

9.7%

Moderate

Moderate capital efficiency

ROCE

18.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.65x

Moderate

Moderate leverage

Revenue Growth (YoY)

22.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

25.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.30%

Modest

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

Free Cash Flow

₹19 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

12.0%

Average

Average margins

Net Margin

5.9%

Average

Average bottom-line conversion

Current Ratio

1.56

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.61

Defensive

Steadier than the market

52W Range Position

68%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

190.0 / 163.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

36.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹104 Cr	₹122 Cr	₹156 Cr	₹173 Cr	+18.4%
EBITDA	₹12 Cr	₹19 Cr	₹27 Cr	₹27 Cr	+30.9%
EBITDA Margin	11.4%	15.4%	17.4%	15.4%	—
PAT (Net Profit)	₹6 Cr	₹9 Cr	₹12 Cr	₹10 Cr	+16.7%
EPS	₹3.86	₹4.98	₹6.65	₹5.4	+11.9%
ROE	9.1%	11.5%	13.5%	9.7%	—
ROCE	14.8%	18.9%	19.8%	18.4%	—
Total Debt	₹26 Cr	₹35 Cr	₹60 Cr	₹74 Cr	+42.9%
Free Cash Flow	-₹9 Cr	₹1 Cr	₹19 Cr	₹19 Cr	—

🟢 Revenue has grown at 18.4% a year over 3 years.

🟢 EBITDA has grown at 30.9% a year over 3 years.

🟢 EBITDA Margin has risen from 11.4% to 15.4% over 3 years (+4.0 pts).

🟢 PAT (Net Profit) has grown at 16.7% a year over 3 years.

🟢 EPS has grown at 11.9% a year over 3 years.

🟡 ROE has held roughly flat at 9.7% over 3 years.

🟢 ROCE has risen from 14.8% to 18.4% over 3 years (+3.6 pts).

🔴 Total Debt has grown at 42.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹9 Cr to ₹19 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹213 Cr

Total Liabilities

₹99 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹19 Cr

Capex

-₹6 Cr

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

23 Sept 2026

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 positive4 general

QMS Medical Allied Services Ltd Dividend History, Yield & Record Date

INDmoney, 25 SeptCapital return

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

QMS Medical Allied Services Ltd. Lower Circuit: Price and Key Data

Univest, 05 Oct

Here's Why QMS Medical Allied Services (NSE:QMSMEDI) Has Caught The Eye Of Investors

Simply Wall Street, 30 Apr

QMS Medical Allied Services Ltd. Upper Circuit: Price and Key Data

Univest, 29 Sept

QMS Medical FY26 profit falls 13%, revenue rises 11%

scanx.trade, 04 JunResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

QMS Medical Allied Services migrates to NSE Mainboard on June 18

scanx.trade, 18 Jun

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth

MiddlingRisk

WeakProfitability · Valuation

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

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑