Sai Parenteral's Limited

Healthcare — Drug Manufacturers - General · NSE

₹487.50+₹3.60 (+0.74%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Sai Parenteral's Limited, a pharmaceutical formulations company, engages in the branded generic formulations and contract development and manufacturing businesses in India and internationally.

IndustryDrug Manufacturers - General

SectorHealthcare

Employees293

Annual revenue₹495 Cr

How does it make money?

Turns over ₹495 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 293 employees supports ₹1.69 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin11.0%

Net margin4.0%

Revenue / employee₹1.69 Cr

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?Some evidence

ROCE of 17.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE17.9%

ROE17.6%

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 2 years revenue moved +411% while net margin moved -12% 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+411%

Margin effect-12%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

31/ 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.

Historical Valuation

Current P/E

168.1x

Sector Median

33.3x

median of 4 sector peers

⚠️Against its sector it trades 404% above the peer median of 33.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

33.3x median of 4 peers · +404%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

168.1x

P/B

3.25x

EV/EBITDA

43.2x

PEG

1.50

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 2 years.
Return on equity is rising
ROE has improved from 13.9% to 17.6%.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 22.2% to 11.0% over 2 years.
Debt is rising
Total debt is up 197% over 2 years — worth checking what it funded.
Return on capital is falling
ROCE has declined from 22.6% to 17.9% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 1047% against revenue growth of 411% — stock may not be moving.
Short-term liquidity is tight
Current ratio of 0.81 — near-term obligations exceed near-term assets.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 197% over 2 years, from ₹69 Cr to ₹204 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 11.2 points, from 22.2% to 11.0%.
🔴Inventory building faster than salesFinancial
Inventory up 1047% against revenue up 411% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.81 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹33 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 22.2% to 11.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 404% above the peer median. That premium needs a reason that persists, or it closes.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 95% a year✓ 126.1% CAGR
Latest reported year was 435.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 2.7x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹33 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹2,154 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

168.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.25x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.9

Profitable

Profitable on a per-share basis

ROE

17.6%

Strong

Strong capital efficiency

ROCE

17.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.49x

Low

Conservative leverage

Revenue Growth (YoY)

435.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1527.3%

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

₹33 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹487.5

Operating Margin

8.6%

Average

Average margins

Net Margin

3.9%

Average

Average bottom-line conversion

Current Ratio

0.81

Adequate

Adequate, but no real cushion

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

506.0 / 523.0

Bearish alignment (short < long)

RSI (14)

44.7

Neutral momentum

Financial Trend (3-Year)

Metric	FY23	FY24	FY25	2Y CAGR
Revenue	₹97 Cr	₹154 Cr	₹495 Cr	+126.1%
EBITDA	₹21 Cr	₹36 Cr	₹54 Cr	+59.2%
EBITDA Margin	22.2%	23.6%	11.0%	—
PAT (Net Profit)	₹4 Cr	₹8 Cr	₹20 Cr	+111.8%
EPS	₹0.99	₹1.9	₹4.44	+111.8%
ROE	13.9%	11.3%	17.6%	—
ROCE	22.6%	20.5%	17.9%	—
Total Debt	₹69 Cr	₹119 Cr	₹204 Cr	+72.4%
Free Cash Flow	-₹30 Cr	-₹74 Cr	₹33 Cr	—

🟢 Revenue has grown at 126.1% a year over 2 years.

🟢 EBITDA has grown at 59.2% a year over 2 years.

🔴 EBITDA Margin has fallen from 22.2% to 11.0% over 2 years (-11.2 pts).

🟢 PAT (Net Profit) has grown at 111.8% a year over 2 years.

🟢 EPS has grown at 111.8% a year over 2 years.

🟢 ROE has risen from 13.9% to 17.6% over 2 years (+3.7 pts).

🔴 ROCE has fallen from 22.6% to 17.9% over 2 years (-4.7 pts).

🔴 Total Debt has grown at 72.4% a year over 2 years.

🟢 Free Cash Flow has turned positive, from -₹30 Cr to ₹33 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹724 Cr

Total Liabilities

₹600 Cr

Total Debt

₹204 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹33 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

9.6%

Insider Holding

74.8%

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

2 positive1 mixed3 general

Sai Parenteral's share price: Stock lists at 2% premium; here's how much investors made per lot

Upstox, 02 Apr

Sai Parenterals profit jumps 975% in Q1FY27; approves stake acquisitions

scanx.trade, 11 AugResults

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

Sai Parenteral's shares settle 3% higher from IPO price on NSE; should you buy, sell or hold?

Moneycontrol.com, 02 AprPrice 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.

Sai Parenteral's consolidated net profit rises 457.75% in the June 2026 quarter

Business Standard, 12 AugResults

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

Sai Parenteral's (NSEI:SAIPARENT) - Stock Analysis

Simply Wall Street, 02 Apr

Sai Parenteral’s And Powerica Mark Their Debut On Stock Exchanges

https://www.fintechbiznews.com/, 04 Apr

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak8.8/20

🟡Financial HealthAdequate11.9/20

🟢GrowthStrong14.7/20

🟢ProfitabilityStrong9.8/15

🔴ValuationDemanding5.7/15

🔴RiskHigh2.3/10

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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 95% a year126.1% CAGR
✓EBITDA margin holds above 9%11.0%
✗Debt / EBITDA falls below 3x3.7x
✗Interest cover stays above 3x2.7x
✓Free cash flow remains positive₹33 Cr