Senores Pharmaceuticals Limited

Healthcare — Drug Manufacturers - General · NSE

₹1,319.00+₹60.20 (+4.78%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

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, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Senores Pharmaceuticals Limited develops, manufactures, sells, and trades in pharmaceutical and allied products in India, the United States, the United Kingdom, Canada, and internationally.

IndustryDrug Manufacturers - General

SectorHealthcare

Employees368

Annual revenue₹614 Cr

How does it make money?

Turns over ₹614 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹35 left at the operating level before interest, tax and depreciation. Each of its 368 employees supports ₹1.67 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin35.5%

Net margin18.8%

Revenue / employee₹1.67 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 15.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.5%

ROE12.4%

Peer median ROE14.5%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 34.1% and earnings to grow about 40.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+34.1%

Est. earnings growth+40.9%

Analysts4

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 +1639% while net margin moved -21% 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+1639%

Margin effect-21%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

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

46.5x

2Y Median

55.8x

24 monthly readings · mean 64.1x · range 42.7x–100.9x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 17% below its 2y median of 55.8x. 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 39% above the peer median of 33.3x.

vs. its own history

Fair

55.8x median over 24 months · -17%

vs. sector peers

Expensive

33.3x median of 4 peers · +39%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

46.5x

P/B

5.61x

EV/EBITDA

29.2x

PEG

0.33

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 45.5% to 35.5% over 3 years.
Debt is rising
Total debt is up 446% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 18.5% to 12.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.0% to 15.5% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 2758% against revenue growth of 1639% — stock may not be moving.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 446% over 3 years, from ₹63 Cr to ₹342 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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 10.0 points, from 45.5% to 35.5%.
🔴Inventory building faster than salesFinancial
Inventory up 2758% against revenue up 1639% — stock may not be moving.

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?

Margins are being competed away
EBITDA margin has fallen from 45.5% to 35.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 39% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 18.5% to 12.4%. 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.
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
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.

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

1Revenue growth stays above 119% a year✓ 159.1% CAGR
Latest reported year was 38.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 33%✓ 35.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹203 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 15.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹6,074 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

46.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.61x

Rich

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

EPS (TTM)

₹28.39

Profitable

Profitable on a per-share basis

ROE

12.4%

Moderate

Moderate capital efficiency

ROCE

15.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.35x

Low

Conservative leverage

Revenue Growth (YoY)

38.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

43.5%

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

-₹203 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1,319

P/E (Forward)

26.6x

Improving

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

Operating Margin

24.3%

Good

Healthy core-business profitability

Net Margin

18.7%

Good

Strong bottom-line conversion

Current Ratio

1.92

Comfortable

Healthy short-term liquidity

52W Range Position

69%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1349.7 / 1419.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹35 Cr	₹211 Cr	₹381 Cr	₹614 Cr	+159.1%
EBITDA	₹16 Cr	₹43 Cr	₹108 Cr	₹218 Cr	+138.5%
EBITDA Margin	45.5%	20.6%	28.3%	35.5%	—
PAT (Net Profit)	₹8 Cr	₹31 Cr	₹59 Cr	₹115 Cr	+139.2%
EPS	₹1.83	₹6.83	₹16.12	₹26.39	+143.4%
ROE	18.5%	15.4%	7.4%	12.4%	—
ROCE	18.0%	8.9%	9.2%	15.5%	—
Total Debt	₹63 Cr	₹258 Cr	₹315 Cr	₹342 Cr	+76.1%
Free Cash Flow	-₹48 Cr	-₹78 Cr	-₹203 Cr	-₹203 Cr	—

🟢 Revenue has grown at 159.1% a year over 3 years.

🟢 EBITDA has grown at 138.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 45.5% to 35.5% over 3 years (-10.0 pts).

🟢 PAT (Net Profit) has grown at 139.2% a year over 3 years.

🟢 EPS has grown at 143.4% a year over 3 years.

🔴 ROE has fallen from 18.5% to 12.4% over 3 years (-6.2 pts).

🔴 ROCE has fallen from 18.0% to 15.5% over 3 years (-2.5 pts).

🔴 Total Debt has grown at 76.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,604 Cr

Total Liabilities

₹639 Cr

Total Debt

₹342 Cr

Cash & Equivalents

₹46 Cr

Operating Cash Flow

₹62 Cr

Capex

-₹265 Cr

Shareholding (proxy)

Institutional Holding

10.0%

Insider Holding

54.9%

Analyst Consensus

Recommendations

5 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,613.6

+22.3% vs CMP

Target Range

₹1,500 – ₹1,795

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

SENORES 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.

Senores Pharmaceuticals seeks approval for MD and WTD re-appointments

scanx.trade, 16 Oct

Senores Pharmaceuticals vs Nifty 50: 1Y Return +80.29% vs -10.93%

Univest, 12 Oct

Senores Pharmaceuticals Ltd Peer Comparison – Compare with Others

Value Research, 30 Aug

SENORES PHARMACEUTICALS L Share Price

Upstox, 05 May

Should You Be Adding Senores Pharmaceuticals (NSE:SENORES) To Your Watchlist Today?

Simply Wall Street, 19 May

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong15.8/20

🟢Financial HealthStrong13/20

🟡GrowthModest12.9/20

🟡ProfitabilityModerate8.9/15

🔴ValuationDemanding5.3/15

🔴RiskHigh3.1/10

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

This thesis breaks if

✓Revenue growth stays above 119% a year159.1% CAGR
✓EBITDA margin holds above 33%35.5%
✗Free cash flow remains positive-₹203 Cr
✓Debt / EBITDA stays below 2x1.6x
✓ROCE stays above 13%15.5%