Sanjivani Paranteral Limited

Healthcare — Drug Manufacturers - Specialty & Generic · BSE

₹174.00−₹3.90 (−2.19%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 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 Sanjivani Paranteral Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sanjivani Paranteral Limited operates as a pharmaceutical company in India.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees43

Annual revenue₹68 Cr

How does it make money?

Turns over ₹68 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 43 employees supports ₹1.59 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin16.7%

Net margin9.9%

Revenue / employee₹1.59 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 16.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE16.1%

ROE14.1%

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 +94% while net margin moved -22% 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+94%

Margin effect-22%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.01 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

60/ 100

Fair

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

28.1x

3Y Median

36.2x

40 monthly readings · mean 38.4x · range 19.8x–73.6x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 22% below its 3y median of 36.2x. 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 16% below the peer median of 33.3x.

vs. its own history

Cheap

36.2x median over 40 months · -22%

vs. sector peers

Fair

33.3x median of 4 peers · -16%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

28.1x

P/B

4.04x

EV/EBITDA

19.9x

PEG

1.93

Dividend Yield

0.29%

What's Good / What's Bad

🟢 What's Going Well3

Valuation below its historical average
At 28.1x the stock trades 22% below its own median of 36.2x.
Very low debt
Debt/Equity of 0.28x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 473% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 676% against revenue growth of 94% — customers are taking longer to pay.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 473% over 3 years, from ₹2 Cr to ₹14 Cr.
🔴Free cash flow negative for 3 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 676% against revenue up 94% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 23% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 22% 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 676% against revenue up 94%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1Revenue growth stays above 18% a year✓ 24.7% CAGR
Latest reported year was 33.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 16.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

₹214 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.1x

Fair

Fairly valued against the generic band

P/B Ratio

4.04x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.2

Profitable

Profitable on a per-share basis

ROE

14.1%

Moderate

Moderate capital efficiency

ROCE

16.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

33.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

44.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.29%

Modest

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

Free Cash Flow

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹174

Operating Margin

14.8%

Average

Average margins

Net Margin

10.1%

Good

Strong bottom-line conversion

Current Ratio

1.38

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.01

Defensive

Steadier than the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

173.3 / 182.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

55.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹35 Cr	₹54 Cr	₹70 Cr	₹68 Cr	+24.7%
EBITDA	₹6 Cr	₹9 Cr	₹11 Cr	₹11 Cr	+26.1%
EBITDA Margin	16.1%	15.9%	16.4%	16.7%	—
PAT (Net Profit)	₹5 Cr	₹6 Cr	₹8 Cr	₹7 Cr	+14.6%
EPS	₹4.51	₹5.28	₹6.66	₹5.49	+6.8%
ROE	—	22.1%	21.3%	14.1%	—
ROCE	—	26.0%	23.2%	16.1%	—
Total Debt	₹2 Cr	₹1 Cr	₹8 Cr	₹14 Cr	+78.9%
Free Cash Flow	₹4 Cr	-₹14 Cr	-₹18 Cr	-₹10 Cr	—

🟢 Revenue has grown at 24.7% a year over 3 years.

🟢 EBITDA has grown at 26.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 16.7% over 3 years.

🟢 PAT (Net Profit) has grown at 14.6% a year over 3 years.

🟢 EPS has grown at 6.8% a year over 3 years.

🔴 ROE has fallen from 22.1% to 14.1% over 3 years (-8.0 pts).

🔴 ROCE has fallen from 26.0% to 16.1% over 3 years (-9.8 pts).

🔴 Total Debt has grown at 78.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹88 Cr

Total Liabilities

₹37 Cr

Total Debt

₹14 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

59.5%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

19 Sept 2025

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 mixed5 general

Sanjivani Paranteral closes trading window for Q2FY27 results

scanx.trade, 28 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Sanjivani FY26 PAT at ₹669.38 Lacs; FY27 Revenue Guidance ₹140-150 Cr

scanx.trade, 15 May

AMBALALSA Stock Price and Chart — NSE:AMBALALSA

TradingView, 20 Apr

Sanjivani Paranteral Limited (531569) Company Information

Simply Wall Street, 14 Nov

Sanjivani Paranteral's promoter settles case with Sebi; pays Rs 4.95 lakh

The Times of India, 18 May

PRAVEG Stock Price and Chart — NSE:PRAVEG

TradingView, 20 Apr

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong13.7/20

🟡Financial HealthAdequate12/20

🟡GrowthModest12.9/20

🟢ProfitabilityStrong9.9/15

🟡ValuationFair9.5/15

🔴RiskHigh4.4/10

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 18% a year24.7% CAGR
✓EBITDA margin holds above 15%16.7%
✗Free cash flow remains positive-₹10 Cr
✓Debt / EBITDA stays below 2x1.3x
✓ROCE stays above 13%16.1%