Shree Ganesh Remedies Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹699.80+₹10.25 (+1.49%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shree Ganesh Remedies Limited engages in the manufacture and sale of pharmaceutical drug intermediates for active pharmaceutical ingredient (API) and fine chemicals in India and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees224

Annual revenue₹108 Cr

How does it make money?

Turns over ₹108 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹34 left at the operating level before interest, tax and depreciation. Each of its 224 employees supports ₹48.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹48.3 lakh

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 14.7% 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.

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 +20% while net margin moved -13% 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+20%

Margin effect-13%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 58.5x is demanding — it needs sustained high growth to justify
✗ P/B of 5.51x is a steep premium to book

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

27/ 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

58.5x

Sector Median

33.3x

median of 4 sector peers

⚠️Against its sector it trades 75% 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 · +75%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

24.7x

PEG

40.94

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 29.4% to 34.3% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 19.1% to 10.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.8% to 14.7% — often a sign of competition or overexpansion.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 29.4% to 34.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹7 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

A premium to the sector to defend
It trades 75% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 6.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 19.1% to 10.9%. 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.
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

1EBITDA margin holds above 32%✓ 34.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.2% CAGR
Latest reported year was -41.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 14.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 10 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

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹898 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

58.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.51x

Rich

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

EPS (TTM)

₹11.97

Profitable

Profitable on a per-share basis

ROE

10.9%

Moderate

Moderate capital efficiency

ROCE

14.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

-41.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-67.5%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

6.3%

Average

Average margins

Net Margin

15.6%

Good

Strong bottom-line conversion

Current Ratio

3.96

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

RSI (14)

55.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹90 Cr	₹125 Cr	₹107 Cr	₹108 Cr	+6.2%
EBITDA	₹27 Cr	₹45 Cr	₹42 Cr	₹37 Cr	+11.8%
EBITDA Margin	29.4%	35.7%	39.5%	34.3%	—
PAT (Net Profit)	₹17 Cr	₹28 Cr	₹23 Cr	₹18 Cr	+1.4%
EPS	₹14.01	₹22.34	₹17.96	₹13.83	-0.4%
ROE	19.1%	23.0%	15.9%	10.9%	—
ROCE	18.8%	25.4%	18.9%	14.7%	—
Total Debt	₹34 Cr	₹36 Cr	₹38 Cr	₹31 Cr	-2.8%
Free Cash Flow	-₹35 Cr	-₹1 Cr	₹7 Cr	₹7 Cr	—

🟢 Revenue has grown at 6.2% a year over 3 years.

🟢 EBITDA has grown at 11.8% a year over 3 years.

🟢 EBITDA Margin has risen from 29.4% to 34.3% over 3 years (+4.9 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.4% a year).

🟡 EPS has been broadly flat over 3 years (-0.4% a year).

🔴 ROE has fallen from 19.1% to 10.9% over 3 years (-8.2 pts).

🔴 ROCE has fallen from 18.8% to 14.7% over 3 years (-4.1 pts).

🟢 Total Debt has shrunk at 2.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹35 Cr to ₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹208 Cr

Total Liabilities

₹45 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

₹24 Cr

Capex

-₹17 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.9%

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 positive1 mixed4 general

Shree Ganesh Remedies Limited (SGRL.NS) valuation measures and financial statistics

Yahoo Finance UK, 14 Oct

SGRL Stock Price and Chart — NSE:SGRL

TradingView, 17 Aug

Shree Ganesh Remedies Share Price Fall: BSE Price Analysis

Univest, 14 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Shree Ganesh Remedies Limited (SGRL.NS) recent insider transactions

Yahoo Finance UK, 14 Oct

Shree Ganesh Remedies Reports Q4FY26 Revenue Surge of 36% YoY, FY26 PAT Falls 23%

scanx.trade, 15 MayResults

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

SGRL Gains 15.55% as Stock Movement Draws Market Attention

Kalkine India, 31 Aug

Watch Items

Revenue growth is negative (-41.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingProfitability · Risk

WeakGrowth · Valuation

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.

All 5 tripwires holding · see Key things to watch ↑