Remus Pharmaceuticals Limited

Sector n/a · NSE

₹1,911.30−₹51.05 (−2.60%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

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

How does it make money?

Turns over ₹839 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 14.1% 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.

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

18/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

36.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

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

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 227% over 3 years, from ₹8 Cr to ₹27 Cr.
🔴High leverageFinancial
Debt/Equity of 7.71x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Leverage amplifies any setback
Debt/Equity of 7.71x. Interest is payable whether or not the business has a good year.
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
2 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 106% a year✓ 141.3% CAGR
Latest reported year was 37.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 14.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 7 neutral · 1 weak

Market Cap

₹2,252 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

10.5%

Moderate

Moderate capital efficiency

ROCE

14.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

7.71x

High

High leverage

Revenue Growth (YoY)

37.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

27.2%

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 generative

Generates cash even after funding its capex

More Metrics

Gross Margin

11.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

4.4%

Average

Average bottom-line conversion

Current Ratio

1.98

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

940.4 / 911.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.6

Neutral momentum

Financial Trend (5-Year)

Metric	FY22	FY23	FY24	FY25	FY26	3Y CAGR	4Y CAGR
Revenue	₹25 Cr	—	₹210 Cr	₹610 Cr	₹839 Cr	—	+141.3%
EBITDA	₹5 Cr	—	₹32 Cr	₹50 Cr	₹62 Cr	—	+88.4%
EBITDA Margin	20.0%	—	15.1%	8.3%	7.4%	—	—
PAT (Net Profit)	₹3 Cr	—	₹21 Cr	₹29 Cr	₹37 Cr	—	+81.8%
EPS	₹2.87	—	₹21.49	₹16.31	—	—	—
ROE	—	—	13.0%	11.4%	10.5%	—	—
ROCE	—	—	16.0%	15.7%	14.1%	—	—
Total Debt	—	₹8 Cr	₹14 Cr	₹23 Cr	₹27 Cr	+48.4%	+48.4%
Free Cash Flow	₹5 Cr	—	-₹2 Cr	₹3 Cr	₹4 Cr	—	-7.8%

🟢 Revenue has grown at 141.3% a year over 4 years.

🟢 EBITDA has grown at 88.4% a year over 4 years.

🔴 EBITDA Margin has fallen from 20.0% to 7.4% over 3 years (-12.6 pts).

🟢 PAT (Net Profit) has grown at 81.8% a year over 4 years.

🔴 ROE has fallen from 13.0% to 10.5% over 3 years (-2.5 pts).

🔴 ROCE has fallen from 16.0% to 14.1% over 3 years (-1.9 pts).

🔴 Total Debt has grown at 48.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 7.8% a year over 4 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹579 Cr

Total Liabilities

₹191 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹18 Cr

Capex

-₹15 Cr

Recent News

1 mixed5 general

Remus Pharmaceuticals Ltd. (REMUS-SM) Share Price Rises 8.06% as Small Cap Stock Enters Top Gainers Today

Univest, 20 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.

There Are Reasons To Feel Uneasy About Remus Pharmaceuticals' (NSE:REMUS) Returns On Capital

Simply Wall Street, 11 Feb

Remus Pharmaceuticals appoints Bhavik Shah as CFO effective July 9, 2026

scanx.trade, 23 Jun

Remus Pharmaceuticals Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 10 Sept

REMUS Stock Price and Chart — NSE:REMUS

TradingView, 01 Nov

Remus Pharmaceuticals appoints Tapan Shah as Secretarial Auditor

scanx.trade, 20 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · 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. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑